Technology
   Mobile Apps
   Touch Screen
   Wi-Fi
   Cloud Computing
   Compatibility with other devices
   Multi-tasking on the phone


Societal   Values and Lifestyles
   Social Media
   Electronic Entertainment
      U.S populous is enthralled with technology and desire to have the latest
        and best technology at their disposal
Factor                  Threats or opportunity                           Impact




Political               - Different legal proceedings/ regulations       1.moderate
                        - Patents                                        2. high




Economic                + Economic Growth internationally.               1.high
                        - Economic Recession                             2. low




Social                  + Estimated 5 billion cell phone subscriptions   1.high
(include demographic)   globally.                                        2.high
                        + Increase growth in Canada.                     3.moderate
                        + Consumerism


Technological           + Technological advancements Black Berry 7       1.high
                        operating system.                                2.moderate
                        - increase competition for apps.                 3.moderate
                        + Advancement in the use of internet and
                        mobile devices.
Market Size and Growth
   U.S Market
       The industry is suppose to have a growth rate of 2.6% from 2009-2014
    Asia Pacific
       The industry is suppose to have a growth rate of 7.3% from 2009-2014
    European
       The industry is suppose to have a growth rate of 4.6% from 2009-2014
Scope of competitive rivalry
   Foreign operations important for long term competitive success
      Asia Pacific is the biggest opportunity for companies
         Accounted for 52.3% of the global market value
      India's Smartphone market is expected to grow to about 40 million
         users by the end of 2015 from about 10 million now
Buyer Needs and Requirement
    Consumers demand constantly changing
    Vendors want more innovative products to market to consumers
Product Innovation
    Short Life cycles force competitors to continuously innovate their
       products
Pace of Technological Change
    Rapid technological changes makes it hard for companies to stay at a
       competitive advantage
 Industry Driving Forces:
     -Product Innovation
     -Emerging New Internet Capabilities And
     Applications
      -Technological Change
 Industry Trends:
     -Mobile Apps
     -Touch Screen
     -Mobile Media
     -Increased Globalization
     -Increased Bandwidth
     -Cloud Computing
   Rivalry
      -Strong
Supplier Bargaining Power
   -Moderate to Strong
   -Small number of large companies
   -Raw Materials---Electrical components (must buy
   high quality)
   Buyer Bargaining Power
      -Moderate to Strong
      -Individual consumers
      -Vendors
   Profitability
    › Market Revenue
        The Industry is profitable for current members with the expected
         revenue increasing in all of the major segments. This provides the
         opportunity for companies to increase their market share
        U.S market
           Expected market value is $17 billion in 2014
        European market
           Expected market value $12.5 billion in 2014
        Asia Pacific market
           Expected market value $50 billion in 2014
   Attractiveness
    › Current Members
        This industry is attractive to current industry members who have high
         market shares.
    › New Entrants
        This industry is unattractive to new entrants due to stagnant growth
         rate rates in the market.
        The industry is also highly competitive and
        High barriers of entry
 Brand Name
Product Innovation
Vendor Relationships
 Foreign Operations
Marketing
Key Success Factor/Strength                RIM              Apple              Motorola          Cisco Systems
Measure                                                                        Solutions


                              Importance Strength Score Strength Score Strength Score Strength Score
                              Weight     Rating         Rating         Rating         Rating


Product Innovation                   0.2          5    1            10 2              8 1.6            9 1.8

Brand Name                           0.2          7   1.4           10 2              8 1.6            8 1.6

Vendor Relationships                 0.3          7   2.1           10 3              8 2.4            8 2.4

Foreign Operations                   0.2          7   1.4            8 1.6            7 1.4            7 1.4

Marketing                            0.1          5   0.5           10 1              5 0.6            7 0.7

   Sum of Importance                  1               6.4                9.6               7.5             7.9
Weights


Weighted Overall Strength                        31                 48               36               39
Rating
Strength:                            Weakness:
              No Debt                           Failure to adapt
    Brand Name/Recognition                      Product Defects
               Security                           Management
       Business environment                      Product Delays
         High Profit Margins                   Legal proceedings
One of the leaders in global markets           Niche Market focus
                                               Lack of Innovation




           Opportunities:                             Threats:
        Cloud Computing                      Short product life cycles
            Mobile Apps                         Intense Competition
           Smartphone’s                Popularity of Apple/Android products
   Rapid Technological changes             Patent infringement Claims
              Tablets                                 Vendors
       Bandwidth Expansion                      Economic Recession
        Foreign Operations                      Slow market growth
   RIM is currently operating under a Best
    Cost Strategy, we want to stick with this
    strategy.
oOffensive      Strategies
 Concentrate on Capturing Unoccupied
  Or Less Contested Market Territory
 Adapt and Improve Upon Competitor’s
  Services

oDefensive       Strategies
 Improve Quality or Safety of Products
 Concentrate on Capturing Unoccupied Or Less
  Contested Market Territory
 International Expansion: Focus on more global
  markets specifically the Asia pacific and South
  Africa
          Phase 1
            Form a Strategic Alliance with a local
             company in India
          Phase 2
            Begin to test our phones in the market
          Phase 3
            Continue to establish and strengthen
             our operations in foreign markets
            Market the security features
          Phase 4
            Continue to monitor results and adjust as
             needed
   Adapt and Improve Upon Competitor’s
    Services
       Direct Connect
        Phase 1
          Form a contractual agreement with ooVoo
        Phase 2
          Begin to implement the new video calling feature to
           black berry devices
          Test the App
        Phase 3
          Begin to sell the app to consumers
          Continue to monitor results and make necessary
           adjustments as needed
Improve Quality or Safety of Products
  oDecrease our product delays and
   glitches
   • Phase 1
     Begin to implement new
       technological innovations
   • Phase 2
     Continuous and thorough
       product testing
   • Phase 3
     Release products to consumers

Case Study "Research in Motion"

  • 2.
    Technology Mobile Apps Touch Screen Wi-Fi Cloud Computing Compatibility with other devices Multi-tasking on the phone Societal Values and Lifestyles Social Media Electronic Entertainment U.S populous is enthralled with technology and desire to have the latest and best technology at their disposal
  • 3.
    Factor Threats or opportunity Impact Political - Different legal proceedings/ regulations 1.moderate - Patents 2. high Economic + Economic Growth internationally. 1.high - Economic Recession 2. low Social + Estimated 5 billion cell phone subscriptions 1.high (include demographic) globally. 2.high + Increase growth in Canada. 3.moderate + Consumerism Technological + Technological advancements Black Berry 7 1.high operating system. 2.moderate - increase competition for apps. 3.moderate + Advancement in the use of internet and mobile devices.
  • 4.
    Market Size andGrowth U.S Market The industry is suppose to have a growth rate of 2.6% from 2009-2014 Asia Pacific The industry is suppose to have a growth rate of 7.3% from 2009-2014 European The industry is suppose to have a growth rate of 4.6% from 2009-2014 Scope of competitive rivalry Foreign operations important for long term competitive success Asia Pacific is the biggest opportunity for companies Accounted for 52.3% of the global market value India's Smartphone market is expected to grow to about 40 million users by the end of 2015 from about 10 million now
  • 5.
    Buyer Needs andRequirement Consumers demand constantly changing Vendors want more innovative products to market to consumers Product Innovation Short Life cycles force competitors to continuously innovate their products Pace of Technological Change Rapid technological changes makes it hard for companies to stay at a competitive advantage
  • 6.
     Industry DrivingForces: -Product Innovation -Emerging New Internet Capabilities And Applications -Technological Change  Industry Trends: -Mobile Apps -Touch Screen -Mobile Media -Increased Globalization -Increased Bandwidth -Cloud Computing
  • 7.
    Rivalry -Strong Supplier Bargaining Power -Moderate to Strong -Small number of large companies -Raw Materials---Electrical components (must buy high quality)  Buyer Bargaining Power -Moderate to Strong -Individual consumers -Vendors
  • 8.
    Profitability › Market Revenue  The Industry is profitable for current members with the expected revenue increasing in all of the major segments. This provides the opportunity for companies to increase their market share  U.S market  Expected market value is $17 billion in 2014  European market  Expected market value $12.5 billion in 2014  Asia Pacific market  Expected market value $50 billion in 2014  Attractiveness › Current Members  This industry is attractive to current industry members who have high market shares. › New Entrants  This industry is unattractive to new entrants due to stagnant growth rate rates in the market.  The industry is also highly competitive and  High barriers of entry
  • 9.
     Brand Name ProductInnovation Vendor Relationships  Foreign Operations Marketing
  • 10.
    Key Success Factor/Strength RIM Apple Motorola Cisco Systems Measure Solutions Importance Strength Score Strength Score Strength Score Strength Score Weight Rating Rating Rating Rating Product Innovation 0.2 5 1 10 2 8 1.6 9 1.8 Brand Name 0.2 7 1.4 10 2 8 1.6 8 1.6 Vendor Relationships 0.3 7 2.1 10 3 8 2.4 8 2.4 Foreign Operations 0.2 7 1.4 8 1.6 7 1.4 7 1.4 Marketing 0.1 5 0.5 10 1 5 0.6 7 0.7 Sum of Importance 1 6.4 9.6 7.5 7.9 Weights Weighted Overall Strength 31 48 36 39 Rating
  • 11.
    Strength: Weakness: No Debt Failure to adapt Brand Name/Recognition Product Defects Security Management Business environment Product Delays High Profit Margins Legal proceedings One of the leaders in global markets Niche Market focus Lack of Innovation Opportunities: Threats: Cloud Computing Short product life cycles Mobile Apps Intense Competition Smartphone’s Popularity of Apple/Android products Rapid Technological changes Patent infringement Claims Tablets Vendors Bandwidth Expansion Economic Recession Foreign Operations Slow market growth
  • 12.
    RIM is currently operating under a Best Cost Strategy, we want to stick with this strategy.
  • 13.
    oOffensive Strategies Concentrate on Capturing Unoccupied Or Less Contested Market Territory Adapt and Improve Upon Competitor’s Services oDefensive Strategies Improve Quality or Safety of Products
  • 14.
     Concentrate onCapturing Unoccupied Or Less Contested Market Territory  International Expansion: Focus on more global markets specifically the Asia pacific and South Africa  Phase 1  Form a Strategic Alliance with a local company in India  Phase 2  Begin to test our phones in the market  Phase 3  Continue to establish and strengthen our operations in foreign markets  Market the security features  Phase 4  Continue to monitor results and adjust as needed
  • 15.
    Adapt and Improve Upon Competitor’s Services  Direct Connect  Phase 1  Form a contractual agreement with ooVoo  Phase 2  Begin to implement the new video calling feature to black berry devices  Test the App  Phase 3  Begin to sell the app to consumers  Continue to monitor results and make necessary adjustments as needed
  • 16.
    Improve Quality orSafety of Products oDecrease our product delays and glitches • Phase 1 Begin to implement new technological innovations • Phase 2 Continuous and thorough product testing • Phase 3 Release products to consumers