RIM 1

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RIM 1

  1. 1. RIM Executive Meeting<br />Jennifer Bryant | NiranjanChavan | Kenneth Chen | William Li | Ibrahim Mir<br />
  2. 2. The new model: … data is the future<br />2<br />
  3. 3. Discussion points… changing the consumer’s perspective of RIM<br />1. Data is the future for the consumer market<br />2. Design a new handset in anticipation of changing consumer needs<br />3. Create consumer-centric applications<br />4. Partner with carriers to provide data phone option<br />5. Combine innovative phone with creative direct advertising campaign<br />3<br />
  4. 4. Supporting information<br />4<br />
  5. 5. Data: the new mental model for smartphones<br />The idea: <br />Create a new consumer product and service that primarily uses data to transmit information, without the traditional phone capabilities.<br />The evidence: <br />Smartphone users are driving internet usage<br />Associated with high application usage<br />Skype and other VOIP providers enable phone capabilities over the internet<br />iPhone customers are currently (relatively) satisfied<br />BlackBerry is closely associated with the enterprise market<br />Heavy data usage are making iPhones unprofitable for carriers<br />RIM has the most efficient bandwidth capacity in the market<br />5<br />
  6. 6. Data: the new mental model for smartphones<br />Assumptions:<br />Capture the consumer segment by offering something different, providing them with what they need now and will be using more of in the future<br />RIM will not succeed in the market by simply mimicking the iPhone<br />Guiding principles:<br />Creating a new consumer perception requires a new approach<br />Provide consumers with a product that matches the core competencies of the organization<br />6<br />
  7. 7. Consumers are driving the smartphone market<br />US smartphone users are driving mobile Internet usage<br />Driven by high application usage<br />The mobile Internet will become a greater factor in future consumer smartphone buying decisions<br />Source: AdMob Mobile Metric report (February 2009)<br />7<br />
  8. 8. Establish a new consumer perspective<br />Sharp increase in smartphone demand among consumers<br />The change is happening<br />Similar to shift from landlines to cell phones<br />RIM/BlackBerry are tightly associated with enterprise market<br />8<br />
  9. 9. Customer base using primarily enterprise models<br />9<br />Curve is the most requested BlackBerry product (45%)<br />Source: AdMob Mobile Metrics Report, February 2009<br />
  10. 10. The technology environment is shifting to a Wi-Fi world<br />Google to offer free Wi-Fi in San Francisco<br />Currently offers free Wi-Fi services to Mountain View as testing ground<br />China Telecom’s ChinaNet<br />World’s largest and fastest growing Wi-Fi network; available in hundreds of cities across China<br />Sources: http://wifi.google.com; http://en.chinatelecom.com.cn/products/t20060116_48406.html<br />10<br />
  11. 11. US Wi-Fi usage is increasing, driven by increased smartphone usage<br />Source: AdMob Mobile Metrics Report, January 2009<br />11<br />
  12. 12. Develop a new handset for the new mental model<br />Perception: RIM is too associated with business to be seen as a consumer model. <br />E.g. Toyota versus Honda<br />Storm was not an innovation; was launched as a competing model<br />Product has not met with consumer expectations<br />Need to develop an innovation that also meets customer needs to shape the market<br />Differentiation of service and anticipation of demand has proven to successful in this market (e.g. Apple iPhone)<br />12<br />
  13. 13. Is the BlackBerry Storm trying to be the iPhone?<br />Storm was launched primarily to compete with the iPhone<br />According to consumers, Storm has not lived up to the hype <br />13<br />
  14. 14. Changing the way consumers think about RIM products<br />What do Consumers want? (Consumption in order of usage)<br />Perception of BlackBerry Storm among consumers<br />Send/receive photos or videos<br />Receive SMS<br />Access news/info via browser<br />Access email<br />Buy ringtones<br />Source: Metrics Press Release, May 21 2008<br />Poor image quality <br />Bugs with phone technology<br />Frustration with ‘click’touchscreen keyboard<br />No Wi-Fi<br />Good for email access, organizing<br />Good for creating/editing documents<br />Source: ConsumersReports.org review of BlackBerry Storm 9530; rated 65/100 (compared with <br />14<br />
  15. 15. The future of the market in mobile internet usage through applications<br />RIM to work with 3rd parties to launch applications until their market share increases<br />High application usage is driving smartphone internet usage<br />RIM applications currently business focused<br />Developers need incentives to develop new applications<br />More application usage will drive further application development (e.g. iPhone)<br />15<br />
  16. 16. Partnering with carriers to provide anew service to consumers<br />Carriers have an incentive to partner with RIM to provide an efficient data phone based on consumer trends<br />Carriers are important:<br />Subsidize phones to consumers<br />Charge a flat rate for smartphone usage<br />However, carriers are: <br />Losing power in the value chain (e.g. Skype, VOIP)<br />As internet usage increases, iPhone will be less profitable for carriers<br />Carriers need to partner up or get pushed out of value chain<br />Source: Scotia Capital Equity Research Daily Edge Company Comment, Research in Motion Ltd., August 13, 2008.<br />16<br />
  17. 17. BlackBerry adds value through its bandwidth efficient devices<br />17<br />BlackBerry is between 8x to 20x more efficient than other technologies<br />BlackBerry generates more revenue for carriers<br />Source: Scotia Capital Equity Research Daily Edge Company Comment, Research in Motion Ltd., August 13, 2008.<br />
  18. 18. Advertise to get consumers to ask for the product before they get to the store<br />Combining creative consumer advertising with an innovative product will get consumers to ask for the product<br />An innovative product will draw customers to retail stores<br />RIM has traditionally focused on direct sales marketing; suitable for enterprise market<br />Apple has achieved strong market by combining these two aspects<br />Consumers respond to different advertising techniques than enterprise market<br />http://www.youtube.com/watch?v=bhhbaaWBgnk<br />http://www.youtube.com/watch?v=GmyVzoyY9Jo<br />18<br />
  19. 19. Apple has the highest percentage of monthly handset requests in US<br />Source: AdMob Mobile Metrics Report, February 2009<br />19<br />
  20. 20. References<br />20<br />AdMob Mobile Metrics Report (January 2009). AdMob, Inc. 2009. 14 April 2009. < http://www.admob.com/marketing/pdf/mobile_metrics_jan_09.pdf><br />AdMob Mobile Metrics Report (February 2009). AdMob, Inc. 2009. 14 April 2009. <http://www.admob.com/marketing/pdf/mobile_metrics_feb_09.pdf><br />Brands. China Telecom Corporation, 2009. 14 April 2009. <http://en.chinatelecom.com.cn/products/t20060116_48406.html><br />ConsumersReports.org on BlackBerry Storm 9530. Consumers Union of US, Inc. 2009. 14 April 2009. < http://www.consumerreports.org/cro/electronics-computers/phones-mobile-devices/cell-phones-services/smart-phone-ratings/models/overview/99022386.htm ><br />Google Wifi. Google. 2008. 14 April 2009. <http://wifi.google.com><br />M: Metrics Press Release (2008, May 21). comScore, Inc. 2008. 14 April 2009. http://www.mmetrics.com/press/PressRelease.aspx?article=20080521-smartbrowsing<br />Papageorgious, G. (2008, August 13). Research in Motion Ltd., Scotia Capital Equity Research Daily Edge Company Comment.<br />

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