A Report On The Company 's Stock Price

749 Words3 Pages
Newly appointed CEO of Research in Motion (RIM) Thorsten Heins is faced with many new challenges. The company’s stock price is at a new low, market share continues to decrease, and recent product failure contributes to the decline in consumer and investor confidence. Heins is considering the following three alternatives: 1) Continue to compete in the current smart phone consumer mass market; 2) Narrow or expand their product and marketing focus and determine where to best use their resources; 3) Make RIM an attractive target for acquisition. To make his decision, Heins should address the following criteria: 1) The strategic significance of the mass consumer market to RIMs survival within the smart phone industry; 2) A solution to…show more content…
As more mass market consumers switch over to competitor operating systems such as OS and Android, Corporations will begin to use these handsets within their organizations. It has become evident that Blackberry no longer offers a unique service or product. Therefore, Option 2 is not viable for RIM in the long-term and should not be considered. To continue to compete in the mass consumer market, RIM will need to design a specific product line that targets the masses and price competitively to make an impact in market share. This new line of Blackberry smart phone products must be price sensitive allowing a sales advantage. Revamping the Blackberry App Store will play a critical role in attracting new customers. Providing customers with a larger variety of applications is necessary to attract a larger younger non-corporate demographic group. Developing more applications will be a challenge, however creating greater financial initiatives for third-party application developers will help overcome this. To help further boost app development, RIM will establish partnerships with carriers to develop and sell apps, allowing carriers a mutual benefit from app revenue. Apple has removed the carrier revenue app benefits. RIM will re-introduce that opportunity to the carrier to strengthen relationships, along with carrier branded phones. The marketing of the new product line will be critical toward its success. Thus, improved carrier partnerships will
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