Research in Motion Limited (Rim) Strategic Analysis

There are a gazillion companies out there, but some stand out. Whether it is because of their popularity, affiliations, history, profile or service, one factor simply makes or breaks a company; it’s strategy management process.

RIM has a wide range of customers and established in many developed countries which can gain its brand image among its competitors. As RIM is responsible for innovation of high technology products, there is an effective R&D in RIM to make RIM stay competitive in smartphones industry. A strong relationship between RIM and its service providers showed one of RIM’s core capabilities.

- There are plenty of hardware component manufacturers for cellphones but BlackBerry’s operating system is complicated therefore it limits the number of software developers that will work with them.

The technology portion of their company has grown tremendously which has caused so much of their growth. In addition, they found the perfect formula to appeal to and retain customers. Most of their customers are loyal to their company and insist on sticking to their products. Their market capitalization, $639,922 million, is extremely high compared to other companies in their industry They returned about $8 billion to shareholders during their quarter. Also, their gross margins, currently at 38.01%, are high at passed by

Joseph Palenchar (2013) noted that “the old days saw BlackBerry’s market share in global smartphone shipments peak in 2009 at 20% and fall to 5% in 2012, marking the company’s lowest level since 2003.” (para. 3) “Increase the chances that BlackBerry can regain some of its lost market share during the make-or-break year of 2013” (para. 9) Revenue is declining because the market is becoming smaller. With Apple, Samsung’s products are growing deeply in customers’ impression, BlackBerry is standing in the behind position compare with those two brands. BlackBerry is not enough strong to attract those Apple and Samsung’s customers to choose its products even they produce the new products.

BlackBerry’s Market Share has been reduced to less than 1%. In an industry dominated by two major companies, BlackBerry is highly unlikely to gain a larger percentage of the market,

The company you work for has just woken up, smelled the coffee, and realized the potential impact of disruptive innovation on its strategy and its ultimate survival. In particular, your company wishes to avoid Research in Motion (RIM)’s fate in the smartphone devices and mobile operating software systems markets. As part of your company’s reassessment of its current situation, you have been tasked with providing an overview and summary analysis of RIM’s organizational strategy during those critical years when RIM went from dominant market leader to little more than an inconsequential player in the smartphone devices and mobile operating software systems markets. Your analysis

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"They have an excellent management team, an excellent strategy. They communicate well with shareholders. They hold themselves to a high degree of transparency. There are other company-specific things that they do well. They have very strong margins, returns and they seem very disciplined at maintaining those margins and returns. Generally speaking that should make for a good investment."

After review the information on past and estimated in the future, company, products, competitors and branding, I recommend the following strategy:

The current strategy of the company is to enter foreign markets and to succeed there. The corporate main strategy is to provide high quality product to its customers.

In terms of targeted niche, the company seems inimitability however the innovative products being offered by the company are still unique since other companies are still launching their business and are at initial stages.

In the second quarter of 2007, Motorola had shipped 35.5 million mobile handsets whereby Nokia shipped 100.8 million handsets. Nokia emerged as a leader in the global mobile phone industry, holding a market share of 38.0 percent, by the 2nd quarter of 2007.

1. What are the chief elements of Apple’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving?

▪ BlackBerry product first launched in 1999 ▪ Wide range of Wireless Service Providers (AT&T, Verizon, Sprint and all major global providers) ▪ 41 Million units sold in 2009 ▪ 80+ Million units currently in use globally