‘RIM becomes the first wireless
data technology in North
LED based terminal for General
Motor assembly line.
‘The 2 way paging
Conventional pagers could receive
messages but RIM developed a
technology for 2 way communication
through electronic mail.
Jim Balsille (Harvard
Lazardis as Co-
CEO (1992) with
an investment of
A revolution in the field of wireless
Working Ventures Canadian Fund
$ 5,000,000 is added to the cash reserves of
RIM for completion of the telecom hardware
and software technologies.
Introduces the first wireless
handheld to the market
Initial Public Offering at
Toronto Stock Exchange
Raises $115 million
Worlds first wireless handheld computer is
introduced in association with
BELLSOUTH, IBM & ROGER CANTEL
Blackberry 850: The most
revolutionary product of the decade.
NASDAQ it is
Raises $ 250million
Launches worlds first QWERTY based
computer handheld BB850
US Federal Court asks RIM to pay
23.1million $ to Virginia based
‘Blackberry adds voice
capabilities with 5810 model’
A judge rules an injunction of BB in the
states, but ruling stays.
More than 1 million subscriber’s
RIM agrees to pay $450 million to NTP
Finally the case went up till the Supreme
RIM finally pays 612.5 million $
BALSILLIE, THE SELF-DECLARED
"QUANT JOCK" WITH A HARVARD
MBA, GAVE RIM A NEW
- WallStreet Journal (2001)
• 10 million subscriber’s
• Most valued mobile technology company in
• iPhone launched in the summer season. Not
seen as a threat to Blackberry at the moment.
• Alcatel Lucent partners with BB for China
distribution which leads to a 8% increase in
the market boost.
• Valuation $68 billion.
• Launches BB professional software
• Opens first BB branded store with wireless
• 12 million subscribers (added 1.65million in
The Craze Blackberry 1 the
RIM goes BOLD!
• 1st major radical new device with a beautiful
• Valuation touches $84 billion.
• Competition from Apple.
• Blackberry STORM is launched to a lukewarm
response and mediocre reviews
How Ballmer laughed at iPhone
• Online App Store to compete with Apple
• Becomes worlds largest growing company
with average growth 77% over previous
years, in contrast to 27% for Apple.
• Buys QNX Software Systems for inspiring
the next Blackberry OS’s.
• Launches Blackberry Storm (1st touch
screen with type QWERTY).
• Acquires Astonishing Tribe.
2011 (the year of doom)
• PLAYBOOK opens to mediocre
reviews and pathetic sales.
• Job cuts 2,000 (10% workforce)
• First year sales iPad 9.532 million
Vs Playbook 405K (after reduction
of prices and massive discount
RIM was the industry creator not
Should never have launched a product
such as Playbook. Should have taken
time and launched a disruptive product.
The 3 days that changed
• Oct 10-13 2011.
• 3 day Blackberry system failure.
• 70 million frustrated users.
• As a move to compensate the system
failure, Blackberry gave a $100 coupon for
the Blackberry App Store purchases.
Mike Lazaridis apologizes
OUTRAGED USERS TOOK TO
#DEARBLACKBERRY INTO A
2011 A sad year for RIM
BBM hit by Whatsapp!
• Balsillie / Lazardis step down
• COO Thorsten Theil becomes the CEO.
• RIM hires investment banks JP Morgan/RBC
Capital to assist in reviewing its poor
• BB10 launch
• 5000 job cuts
• $518 million loss
• Stock stoops to an all time low of $6.10.
Turnaround for Blackberry
2013 (A new Blackberry
• BB 10 opens to customers.
• Z10 the first touch based blackberry with the
all new User Interface.
• Q10 the first touch & QWERTY on the knew
• $94 million profits for first quarter.
• Name change to Blackberry. RIM is the
• Rebrands App Store and lures the
What went wrong in 2011 ?
‘The company spent more time trying
to justify its existing smartphone
philosophy and less time getting
ahead of trends.’
- Financial Times; December 2011
Segmentation of market for Blackberry
Who are Blackberry’s biggest
What kind of Brand loyalty did
Blackberry have till 2010?
-Who has used a Blackberry?
-Who have shifted from
Blackberry to other phones and
- Who are still on Blackberry?
What are the substitutes of
• Brand identification
• Customer Loyality
• Time to build the loyality
• Create an industry in itself
• Something like Bizspark Microsoft
• Niche Blackberry’s (Doctors etc.)
• Accessory base
• Brand ambassador
• Clear the structural clutter
• Shift the base to Silicon Valley
This is the only answer for turning
the wheel of fortune for blackberry!
Can you name a company which
had a similar situation and got a
Apple has created an ecosystem
Analysis of the failed enterprise
Technology & IP
• Brand identification
• Customer Loyality
• Time to build the loyality
Why did Blackberry compete on
prices? It was a niche phone not
a mass utility phone!
They should have segmented the
market instead of dropping the price.
Lesson to learn from APPLE!
They created an industry.. iPad (TABLET)
Become a market leader in innovation
5 Reasons of RIMs Success
• Carriers liked Blackberry.
• Device management is included with
• Security was locked down.
• Blackberry was comprehensive.
• Blackberry was easy to use.
• Nokia signed a patent license deal in2012.
• Airtel launched Blackberry handsets in 2004.
• In the year 2007 Blackberry was made
available on Reliance network.
• BSNL also launched.
• AT&T launched solar charging station for
• An education app was introduced in 2012 to
keep youth connected.
• There was a blackberry introduced in 2009 for
babies with help of LeapFrog.
• Blackberry launched a global premium apparel
brand in India.
• MAX Health care started a Blackberry app for
Why was Blackberry so popular
• Blackberry launched the email concepts on the
• The phones had svelete design, sharp screen,HD
• Blackberry improved the gap between work &
• Blackberry became famous for its app BBM
especially from 2010 to 2012.
• US President Barack Obama had love for the
phone as it could be used for office related
• In 2012 Blackberry smartphone makers RIM
had roped in an Indian celebrity Ranbir
• It can be easily operated with one hand
• The interface of OS Blackberry 10 is
• User friendly has is there is BBM,BBM
• Z10 is capable of image & video stabilization.
• Impact of Apple iPhone
• Disattraction from core business
• Late Acquisition
• Launch of Playbook
• Service interuptiom
• Other criticisms
• Financial Table
Impacts of the Apple iPhone
• In 2007,Apple iPhone was introduced.
• The media attention led more consumer
attention towards Apple iPhone and then was
called “Blackberry Killer”.
• In 2007,initially iPhone sales lagged Blackberry
• In 2008,Apple sold 6.9 million iPhones and
RIM sold 6.1 million which lead to downfall
Disatraction from core business
• Jim Balsillie was very big hockey fan.He
purchased hockey teams worth 1200 million
• There were no innovations or patents made
during this span of time.
• This led to no change in RIM’s business from
2006 to 2009.
Competiton from Google
• Google Android was launched.
• Initially Jan 2010,hardly 7.1% Smartphones of
Android were sold in comparision to 43%
• Then in a span of 1 year Android’s sales
increased(67.768) and Blackberry’s sales
Late Aquistion of QNX Softwares
• RIM management got a shock by the iPhone
success and aroused to a world where
smartphones with amazing UI where present.
• To renew the damage they acquired QNX.
• But further delay in the implementation of the
software for Z10, Q10 caused significant
damage to the companies reputation.
• In 2010,Playbook was introduced based on
• This innovation led to poor sales.
• The stock declined from $70 to $15.8
• In oct 2011,there was service interruption for
3 days which affected the Blackberry users all
over the world.
• This outage led subscribers without e-mail
access and other messaging services.
• Rim attempted to placate by providing free
applications worth over $100 to subscribers.
• Dual CEO structure was considered
dysfunctional management structure.
• Promoted a closed culture of communications.
• Lots of Lawyers and no action.
• Blackberry Phones were less attractive.
• Browsing Capabilities were poorer.
• Therefore developers didn’t developed
consumer applications for Blackberry.
• Operating systems were dated and Hardware
• Wall Street Journal
• New York Times
• Forbes Inc.
• CNN money
• RIM-war of the OS platforms
• Competitive advantage (Michael E. Porter)
• Harvard Business Review
• Jakarta Business (THE POST)
• Financial Times
• The economics
• Financial statements from Yahoo Finance.com
• London School of Economics Study package for marketing
• MIT Sloan Techology Review
• Canada Technology Post
• Times of India
• Business Standard
• Deccan Chronicle
A presentation by
• Dr. Ritesh Malik
• Akshara Ravella
• Eesha Palkar
• Sonal Kotecha
Harvard Consulting Group