A Report On The Company 's Stock Price

749 Words Sep 22nd, 2015 3 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 regaining market share and consumer confidence.
RIM is currently in a strong financial position with approximately $3 billion in available cash. They still hold a substantial 16% of the U.S. Smart Phone Operating System market. They manufacture unique quality handsets with class leading features, and have increasing customer satisfaction ratings. More importantly RIM has a large corporate and government customer base still using their world class robust enterprise messaging system. Therefore, option 3 does not satisfy the decision criteria and should be rejected by Heins.
By focusing on a specific market segment, such as only the current Blackberry Enterprise users, RIM runs the risk of continuing to lose operating system market share to the…
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