Apa style research paper research in motion company

Research in Motion Company limited (RIM)

RESEARCH IN MOTION COMPANY LIMITED (RIM)

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(26 February 2011)

Research in Motion Company limited (RIM) 2

Table of Content

1.0 Introduction of the organization............................................................................................3
2.0 Identification of the industry..................................................................................................5
2.1 RIM Competitors...................................................................................................................6
2.2 Potential Profitability of the Industry....................................................................................7
2.3 Bargaining Power of Customers...........................................................................................7
2.4 Threats of New Entrants........................................................................................................8
2.5 Threat of Substitutes..............................................................................................................8
2.6 Bargaining Power of Suppliers.............................................................................................8
2.7 Competitive rivalry................................................................................................................9
3.0 Company success.....................................................................................................................9
3.1 Intensive research..................................................................................................................9
3.2 Good External and Internal Economy.................................................................................10
3.3 Technological growth..........................................................................................................11
4.0 Reason for failures in the company......................................................................................12
4.1 Legal Issues.........................................................................................................................12
4.2 Political aspects...................................................................................................................12
4.3 Social and Cultural Forces..................................................................................................13
4.4 Current firm-level strategy..................................................................................................13
4.5 Current business-level strategy...........................................................................................14
4.6 Competitor’s business-level strategies................................................................................15
5.0 RIM marketing strategy........................................................................................................15
6.0 RIM financial position and financial strategy.....................................................................16
7.0 RIM production and purchasing strategies........................................................................17
7.1 HR and Information Technology strategy...........................................................................17
7.2 RIM strengths.......................................................................................................................17
7.3 RIM weaknesses...................................................................................................................18
7.4 RIM opportunities................................................................................................................19
7.5 RIM threats..........................................................................................................................20
8.0 Strategic alternatives are available for RIM.......................................................................20
9.0 Pros and Cons of the alternatives.........................................................................................22
9.1 Selected alternative..............................................................................................................23
9.2 Implementation....................................................................................................................24
9.3 Controlling the alternative..................................................................................................25
9.4 Anticipated crisis.................................................................................................................25
10.0 Appendices............................................................................................................................26
11.0 References.............................................................................................................................27


Research in Motion Company limited (RIM)

1.0 Introduction of the organization
Research in motion limited (RIM) (TSX: RIM, NASDAQ: RIMM) is company in Canada

that deals with telecommunication and wireless devices and has been known for the outstanding

developing of blackberry Smartphone. The company has it is headquarter in waterloo Ontario in

Canada and they are the main sponsor of RIM park that is situated in the northeast of the city.

The company was founded by mike Lazaridis who is currently the company co-CEO. He works

alongside Jim Balsilie.

Before the company produced Blackberry, it was working with RAM Mobile Data and

Ericsson in turning Mobitex wireless date into a two-way paging and wireless e-mail network.

During their work with the Eriksson Company, they developed Inter@ctive pager 950 that

started functioning in 1998. This device was a size of a bar soap and competed very well with

Sky Tel two-way paging network that had developed by the Motorola Company,

(BlackBerry.com, 2010).

The Canadian institution and venture capital investors funded its early development in

1995. It did this through placing it in the privately held company. Working Ventures Fund Inc.

made a step by investing in the company with five million Canadian dollars. This was to be used

to complete the company development of the two-way paging system hardware and software.

RIM floated shares in the Toronto Stock Exchange in January 1998. Before initial public offer,

they had raised thirty million Canadian dollars in pre-IPO financing.

Since the time that they sold their IPO in the stock exchange market, they have produced

several devices that run using GSM, CDMA and iDEN networks. Blackberry devices did very

well in the corporate world as it send the message very fast and also it was very efficient in


sending e-mails. This made it to be nicknamed ‘Crack berry’ as they called crack cocaine as

some of the people believed that one could not live without it.

Research in Motion and Information Associates reached a licensing agreement in 2006.

This was meant to ensure that the RIM Company would offer Pocket Mac that was used by the

Blackberry to Mackintosh users free. The RIM Company grew tremendously and in 2008, the

Mediacorp Canada Inc. named it among the Canada Top hundred employers in the MacLean’s

news magazine.

In 2009, RIM Company announced their expansion strategy that would involve global

operation. This was done through opening an office in North Sydney in Australia. This new

office had training facilities, a strategic partner marketing centre, research and development

center as well as technical support service center. This leads to increase in the work force in the

company to 12000 jobs that the company offers worldwide.

In the spirit of expansion, the company in June 2009, they announced that they were to

acquire Dash Navigation who was the manufacturers of Dash Express. On the same year on

august, they were capable of acquiring Torch Mobiles therefore enabling them to include

Webkit-based browser on the Blackberry. The idea of expansion and urge of exploiting the

market may have contributed to the RIM Company to be announced by the Fortune Magazine on

18 august 2009 as the fastest growing company in the world. They gave a growth rate of 84% in

profits growth within a span of three years.

The company continued its expansion strategy in 2010 by acquiring Viigo Company,

which is the developer of the Blackberry applications. This is a company based in Toronto

Canada. It went ahead on April in the same year QNX Soft Ware systems. This was done

through the agreement that was signed by the company in corroboration with Harman


International on 12 of April 2010. This collaboration will ensure that RIM Company is able to

integrate and enhance user experience with Smartphone and in-vehicle audio and infotainment

systems. The deal will also ensure that the company integrate other values to the company such

as intelligent peripherals that will help add intellectual property to the RIM‘s portfolios. This will

help the company to provide ling term synergies to the company’s devices through

complimentary operating systems experts in both QNX and RIM Company, (Tricia, 2010).

It was until September 2010 that the company announced the launching of the

BlackBerry Playbook tablet computer. This was projected to be in the market by the beginning of

2011. By May 2010, RIM operating system occupied 10.4% of Smartphone operating system in

the market, (Lendino, 2009).

2.0 Identification of the industry
The main identification that made the RIM Company to be outstanding in the market is

the realization that it cannot offer only mobile enterprise software only. It realized that this

software should be given to the market as a complete offer that can be used as a complete

component in the market. Therefore, it had to ensure that the service that they were offering had

to be given to the market through a mobile handset. It also succeeded in convincing the

customers to sell the IT products and service. This ensured that the company remained a force to

reckon with in the market arena in their pursuit of wireless email market. Initially, no other

company offered such service as the competing companies as seven and Visto companies were

not making handsets while Nokia never offered wireless email services.

These advantages made the company to grow very fast as the investors slammed in the

company in the past years. It established itself by taking advantage of being sole suppliers of

software devices in an immature market. It therefore established itself as a leader who was


capable of raising their company very fast than other companies. However, the market has

matured up very fast of recent soon and RIM is facing a stiff competition from various

companies.

2.1 RIM Competitors
The company has experienced significant criticisms from their customers. This has made

them prove that that they are still competitive in the market. They are running out of the stream

as the competition is building up on daily basis. As it experience competition crisis, it is very

important to convince their customers by protecting their brand in the market and ensure that the

purchasing decision as well as operators’ launches is not delayed.

Initially, RIM could not have feared competition especially in the mobile email market.

This is because most of their competitors were small companies which most of them were

startups. These companies had limited resources and less attractive offers.

Nevertheless, RIM Company has found amidst mighty company recently offering great

competition. These companies are out to ensure that Blackberry do not become the windows of

the wireless email. One of the Research In Motion Company competitors is the Microsoft

Company. The company is out to ensure that it push itself in the email market. The other

company that poses a great threat to the company by launching competing products and

acquiring Intellisync is Nokia Company. Intellisync Company initially supplied the RIM

Company with synchronized desktop software. These two companies are bigger and pose stiff

competitions to RIM. They have also resources and they are very influential, (Elsa & Green,

2006).

One of the biggest competitions that the company poses is that they have partnership with

the operators and they are both producing the handsets. This means that though the company has


a good market foundation, the company is experiencing pressures especially in lowing their

product prices to cope up with the market. Nokia and Microsoft are positioning themselves in

giving their customers cheaper services that are ensuring RIM to feel the pressure to lower their

prices.

Other companies that are still getting to the smart phone market are computer

manufacturers Acer and Dell. Dell is rushing in the market to produce Del Fortune 500 smart

phone. Palm is also another company still competing for a pie in the market with them coming

up with iPhone, which is to use Sprint network that will be available through Verizon. Google is

pouring many resources to fund its Android Smartphone operating system and it is offering

training over it. Motorola is another company that is still supporting Android Smartphone. These

all companies are at the verge of getting into markets that RIM Company has dominated for

along time, (docshare.com, 2010).

2.2 Potential Profitability of the Industry
There are different approaches that are used in the determination of profitability in

different markets. Am going to use the model that was developed by Michael E. porter, where

the profitability potential of an industrial is going to be described as the long run return on the

investments, is much reliant on the degree of competition in the selected industry. The five

forces that are described by Porter include; the threat of new entry, the power of suppliers, the

power of buyers, the threats of substitutes, as well as the industry rivalry

2.3 Bargaining Power of Customers
The options available to customers, bargaining power is very high. This is because there

are other brands available in market, which are offering competitive markets. This is particularly

with the consumer sector other than the enterprise sector, (smh.com.au, 2008)


2.4 Threats of New Entrants
The entry to the market segment that is dominated by RIM is not easy. This is based on

the fact that, all established companies have the opportunity of being new entrant to the

diversified communication industry of Research in Motion. Though until now, RIM has been

having full advantages of its technological dominance in the market place, there still remain the

possibilities f new entrants in the field. Such companies might use older technology in a

revamped and modernized way. The threats of new entrants increased the ODMs usage as well

as globally standardized components. Barriers to entry have considerably reduced. This has made

companies with good brands have the capability of using their brand names to introduce their

products in the market. There are big firms like Google together with other IT giants have the

opportunity of entering the market as they have the required infrastructure. For instance, the new

entrant is Apple, (Speed, 1989).

2.5 Threat of Substitutes
Getting a substitute for mobile sis very hard, what firms are trying to do is just improving

on the existing technology, other than coming up with and eliminating the mobile technology

with completely new products. On the other hand, new technology advancements have posed

serious risk of substitution. The 3G and EDGE technologies pose immediate threat to RIM’s

market control. Though such technologies are being used by RIM, they offer ways through

which new players may enter the market. However, RIM is well positioned in the market and ha

precedence of being in a position to integrate its products, to form new items.

2.6 Bargaining Power of Suppliers
The bargaining power is attributed to the sheer volumes raw materials and other

components bought by RIM. The suppliers in the industry have low bargaining power in the


manufacturing face. For instance, the processors of similar architecture used by RIM are

manufactured by many companies like the Intel, freescale semiconductors, Samsung among

other companies. This is based on the fact that, suppliers always looking forward to associate

themselves with major firms for long term. On the other hand, there exist different suppliers for

the services that are offered by RIM. Due to this, RIM has to make use of networks of existing

mobile operators, and in some occasions, where there exist limited number, or only one operator,

the bargaining power of that supplier tend to be elevated. However, even without Lynas, China

still controls more than “95 per cent of the world's supply of rare earths, used in Research in

Motion's BlackBerry, Apple's iPods and General Dynamic’s tanks.” (smh.com.au, 2011).

2.7 Competitive rivalry
Amongst the smart phone providers, the most challenging companies to RIM are Apple

and Apple. These two companies have forced Research in Motion “to innovate the products in

order to stay competitive and enjoy high market share.” Porter, 1980).

3.0 Company success

3.1 Intensive research
To ensure that the company does not exist in isolation and increase their performance, it

engages in intensive research to vary their external environment. This is because there factors

which are beyond the firm’s control. It is true that, Research in Motion has an extensive market

globally and it is further involving into newly industrialized nations. This creates a need for

intensive research for the company in all the areas in globally. As an effect, its environmental

analysis has to regard to the economy of the world, as a homogeneous environment. Therefore, it

creates a need to ensure that they understand the way the market is in all the parts of the world

this part has been a great success in the company. They have ensure that they created research


sections in their companies globally which has made them compete intensively in the market and

in provision of quality phones.

3.2 Good External and Internal Economy
Due to the high demand that has been brought by the national and international markets

in the past two decades, it has contributed to the success of the Research in Motion Limited

(RIM). Most of the countries Gross Domestic Product per capita have risen especially in

countries that RIM has been operating in. This has made the demand of the RIM product to

increase sharply. In fact, RIM enjoys favorable environments for business growth. This has made

them to expand their business globally especially in the developing countries. A good example is

the premise that they opened in Sydney Australia. This is has really been made possible by the

purchasing power of individuals going high. Due to improved living standards, most of the

people are able to afford their products. A growing economy as a result has guaranteed RIM a

ready market for their products.

In addition, a growing economy guarantees RIM a source of capital. This is because there

will be more money in the disposal as financial institutions and governments will have money to

lend out at favorable interest rates. The improvements in International as well as national

economy have lead to increased expansion and creation of new market, which in its effect

increases the need for business increases. To ensure that private sectors needs are catered for

amid their demographic increase, hence the usefulness of BlackBerry to many business

professionals, which are the primary consumers of RIM’s products. The increased demand for

BlackBerry in developing economies is much noticeable fin the hundreds of the new corporation

deals that has been being signed by RIM every year with local operators’ worldwide.


On the other hand, global recessions that have taken place globally especially the 2008

economic recession and depression, resulted in lower consumer disposable income. The interests

as well as the exchange rates in different economies have also affected the company’s strategies

in different ways, (John, 2007).

3.3 Technological growth
The technological advancements that have taken place in recent soon has been the most

significant environmental impact on the business success in RIM. Businesses in the whole world

are evolving into using email as one of the main communication and contact medium. This has

made the usage of such mediums like fax and as well as written mail nearly obsolete. By being

the first and probably still the one and only single company that that have been providing e-mail

to go solutions, the company has greatly benefited via providing a medium for professionals to

be in a position of leaving their tables and still communicate through the emails. In addition, its

technological marketing system, which has been through global wireless communications

carriers as well as third party distribution channels, has greatly advantaged the company in one

way or the other.

However, new technologies have posed a risk to the market, for instance the introduction

of the 3Gbraodband services have affected smart phones negatively. As the internet continues to

be faster and efficient, lit might end up attracting new players, who might come with new

features as well as the applications in the sector. Technologies have increased the reuse of

phones due to recycling, (authorstream.com, 2010).


4.0 Reason for failures in the company

4.1 Legal Issues
Since the turn of the century, the company has been involved in a number of suits related

to the alleged patent infringement. Several legal issues that have been put in place to regulate

businesses have brought this about. The most recent and notable one was the brought about by

NPT Inc. It involved patent infringement in email over the wireless technology. This battle

between RIM and the NTP Inc adversely affected e-mail users in the U.S. However, the battle

has made the company to rise to any occasion that has met it afterwards making it position itself

very well in the business world. It also made the company to be very sensitive in making sure

that they protect their products. The legal briefs that have been filed in this case conveyed

charges of misleading a federal judge. However, there have been claims of ant-Americanism as

well as the accounts of vital documents going missing from the library in Norway. After an

intensive legal battle, in 2006, Research In Motion ltd announced that, it has successfully paid

US $ 612.5 million. Visto Corp brought another lawsuit to court in 2006, for the patent

infringement, (theregister.co.uk, 2002).

4.2 Political aspects
Political factors in some countries where RIM operates have lead to financial deficits,

which have resulted to higher taxes leading to lowering RIM’s profitability in such countries.

The changes that have taken place in different parts of the world like changes in government

policy, and government stability, have resulted to the company’s strategies. There are also legal

issues that ensure clean environment, as they regulate the quality and durability to ensure longer

functioning, phone fascias, which can be used for a very long time. Regulations have been put in

place to ensure that, phones are being produced and used with all possible environment friendly


production methods. Other legal factors affecting Research In Motion Ltd include; the control

over pricing and monopolization. The telephone regulations of different nations in most cases

deal with quality, health as well as the safety of mobile users.

4.3 Social and Cultural Forces
The shared norms of different businesses that are shared in the whole world have

drastically changed. This has occurred considerably taken place in the past couple of years, with

businesses becoming more customer oriented. As an effect, communication has increased

between customers and businesses, which have practically increased the use of RIM’s products.

On the other hand, cultural diversity has also affected the global marketing communication of

RIM Ltd. Globally, there are different cultural standards being, thinking and acting because of

cultural diversification, which have influenced RIM’s workplace values as well as business

communication. Therefore, as an effect, for RIM ltd to ensure effective global communication

and successful business transactions, it has promoted cultural differences and enhanced cultural

sensitivity. Marketing across cultures globally has resulted to sociological differences. While

there are diversified global cultures for RIM ltd to consider, global communities are being

influenced by different initiatives. The goodness is that, Smartphone have been accepted by

customer’s lifestyle and integrity part of day-to-day life in most countries. It has been considered

as a high value solution that has been used in the provision of many applications across the

globe, (authorstream.com, 2010)

4.4 Current firm-level strategy
Due to the urge that the company has to expand their territory, the firm has put up firm

strategy to ensure that they retain their competitive edge. Due to the popularity of their software,

they have signed an agreement with the Nokia Company who is their market leader competitors


who agreed to license their software on their new cellular phones. The firm has also expand their

territory by ensuring that their radio modems has received GSM/GPRS certification in Europe

and pacific (theregister.co.uk, 2002). This makes them to have third party vendors with their

hardware across the globe.

The company has recently streamlined their operations to ensure that their business is

more efficient. This has ensured that they lay off some of their workers from 2200 to 1950 to

reduce the overhead cost of their product thus projecting increase their profits.

4.5 Current business-level strategy
To ensure that the business is up to the competition that has been of recently posed by

their competitors, it has put in place some various strategies. They decided that they would go a

step further in their business by producing a Blackberry on a chip product that is being used

through the third party products. This made the phone manufacturers make small devices that are

powered by Blackberry chip.

The company has taken advantage of licensing Blackberry to phones as ISP has

subsidized cellular phones that is not the case with Blackberry pagers. This means high sales for

the company. The decline in sales that has been experienced by the company was due to service

charges. Therefore, after the company introduced these new features, sale is expected to rise.

Finally, the company has provided phones that have voice capabilities. They are also PKI

enabled thus supporting encrypt and sign mail message through digital certification. This makes

the users able to see attachments such as PDF with selective options, MS Words, Excel and

PowerPoint (smh.com.au, 2011).


4.6 Competitor’s business-level strategies
Most of the RIM company competitors are offering very diverse product at cheaper

prices. Such company as Nokia, which is the biggest RIM competitor manufacture handsets and

sell IP network to their customers making them be very competitive. Their market prices are

considerable thus very competitive. Nokia has acquired Intellisync Company that has been

supplying synchronized desktop hardware to RIM to ensure as one of their business strategy to

expand their territory. Motorola Company is funding the Android Smartphone that has been

produced by the Google Company as its strategy in putting more force in the market. Most of

these companies are collaborating with other companies as their strategy to ensure competition in

the market is kept up to the standard.

5.0 RIM marketing strategy
Marketing is an integral part of any company; it is a process of developing value and

awareness of its products or services, as well as informing and communicating to potential end-

users concerning what the organization has in store for them. It also entails engaging consumers’

relationships in order to attain the desired outcome. Organization’s marketing strategy has been

deemed the backbone of RIM company marketing plan. It has helped the company integrate the

marketing goals, policies as well and tactics. The company has been ranked to be the fastest

growing company globally recording an increase of 84% in profit and 77% increase in revenue

in the last three years. This is thanks to its marketing strategy that successfully blends the four

marketing mix, pricing, advertising or promotion and distribution (Fortune Magazine 2009).

According to Vuong, 2008 the company uses B2C marketing strategy. The company

online strategies can sale goods to individual customers. Through the arrangement, customers are

capable of buying the company’s product via the internet or just make a call to the customer


service for help, as they are need of formally buying a product. Similarly, developing of unique

and quality product that is competitive in terms of prices is also used in marketing. Using low

prices for its products also has been used to attract customers. This is driven by the notion that

when prices for its products are low, and a relationship between the company and customers are

in place, then it will be in a position to sell additional goods thereby increasing its margin

(Sweeny, 2009). To successfully do marketing in a successful manner, the company does carry

out research, which is essential in decision making when it comes to making marketing

decisions.

6.0 RIM financial position and financial strategy
RIM according to Fortune 500 is the fastest growing company having a stable and

growing financial base. For the third quarter of 2011, revenue grew 19% to stand at $5.49 bn

from $4.62 bn the previous quarter. This is a 40% rise from the same quarter the previous fiscal

year. Breaking down the revenue for the period are 82.0%, of devices 15.0% for service and

3.0% for software. For this period, the net income stood at $911.1 million compared to $796.7

million in the previous quarter and $628.4million in the same quarter the previous year. All sorts

of investments total cash as well as cash equivalent stood at $2.5bn this is as o0f 2010 November

2010.

An examination of the company’s short-terms and long-term assets as well as liabilities

and equity shows that RIM heavily relies on equity for funding. Most of its assets are short-term.

This means that RIM is interested in having in place a financial strategy that is short-term. RIM

utilizes its own funds to finance assets.


7.0 RIM production and purchasing strategies
RIM uses lean production. This is backed with determination, dedication as well as

attention. This has seen to it that the company is effective and in time in production. The same is

also applied in purchasing activities. Three main positions are in place to over see purchasing,

production and repairing equipments (Dilger, 2009). Lean production, purchasing and supply

management coupled with adoption of technology has brought about a supply chain,

manufacturing and purchasing that is economical, much leaner for smooth flow of the products.

7.1 HR and Information Technology strategy
In terms of technology, RIM is one company that is has well constructed plans of

adopting new technological innovation. The IT department has human resource that is well

acquitted to issues relating to ensuring that technology is adopted in a successful manner. With

regards to human resource the CEOs Lazarids Balsilie most valuable employees. The two have

propelled, advocated and nurtured a culture where employees are seen as partners and the most

valuable resource. This is depicted by the well-drafted compensation as well as bothers benefits.

More importantly, they are actively engaged in making decisions, provided with adequate

information and a conducive environment where they are free to try innovations, (John, 2000).

7.2 RIM strengths
The company has numerous strengths that make it stay competitive. Through its business

strategy of business to customer, it has managed to have build customer loyalty. This has been

attained by having a well-developed and nurtured brand image. The brand image has been

successful in communicating necessary information to the customers.

On the same note, Research in Motion has a variety of products line of phones. With this

in place, customers are made to be loyal as they can get a variety in the same company. The


innovative products it manufactures for instance the Blackberry is well designed with a variety of

features for instance it can combine the power of a state of art wireless email with capabilities of

synchronizing it with the desktop. Its QWERTY keyboard for examples makes texting an easy

and enjoyable task (Sweeny, 2009).

Forming partnership with other stakeholders such as service providers all over the globe,

which is 300 networks in 120 different countries, is in self a competitive advantage to the

company. It is worth noting that the company also has a human resource/workforce that is well

acquainted to their task, duties and responsibilities. This has been attained by the various

mechanisms used to satisfy and motivate their workers hence they are ready to offer quality

services to customers.

More importantly, RIM has been able to adopt successfully technology. It is the adoption

of technology that has made it be in a position to employ innovative strategy in developing new

and quality products that are eye catching. Additionally, the company is involved in designing,

manufacturing as well as marketing of its own products.

Global dominance of the company is another strength it posses. It is no doubt that RIM products

are used allover the world. Additionally, the ability to carryout market research places it at a

better position not only currently but also in the near future as the information generated are used

in making rational decisions, (zenportfolios.com, 2010).

7.3 RIM weaknesses
On major weaknesses, facing the company is its stages of development. It seems that the

company has attained or about to attain maturity stage. This is evident by the slowing rate of

growth; this is a clear indication that RIM is entering maturity or declining stage. The company

targets only few customers; majorly the professionals. This strategy is risky, because, an increase


in competition, customers might be taken away, and as a result, the company might fall into

default. The company targets niche market, so its products are highly priced.

Although it is true that carrying out market research is desirable RIM uses a lot of money

to budget for the program. This is not desirable when it comes to financial performance of the

company. Similarly, the pricing strategy, which is discriminative, is undesirable as it is

prohibitive to a certain market segment (Dilger, 2009).

It is worth noting that the company has a much less market share in consumer market.

This has been made worse by the poor performance in stock market. In September 2010 23, the

stock price was $ 92.41 and by October 19 same 2010 it fell to $69.45. Additionally, RIM has

limited product line as it only engages in phones only unlike its competitors. Lastly, the

technology developed by the company in some instances is very complex to some potential

customers. Finally, compared to Apple, its products have fewer applications, (Martin, 2007).

7.4 RIM opportunities
RIM is faced with numerous opportunities that will help it maintain and probably

improve its market value and position in the face of fierce competition. One major opportunity is

to grow in applications and accessories. This will augment its phone products. It is worth noting

that there is room for it to engage in co-branding ventures as recently seen in Apple and Oracle.

On the same note of growth and expansion, RIM Ltd has the capability of venturing in

developing countries where there is evidence of growth of use of its products. This presents a

great opportunity for the company to capture the markets in developing countries that may help it

increase revenue and profit margin.

The number of youths in the current population is in the rise. The tech-savvy young

individuals might offer the desired market hence a green marketing opportunities


7.5 RIM threats
Like any other organization, RIM Ltd faces a number of threats that it needs to be weary

of. The current market is saturated hence this pose a threat to its expansion and growth. The

unstable economic nature exemplified by the recent financial crisis in 2010 from 2008 may pose

another threat to the company.

Fierce competition from such competitors as Apple that is still new in the industry, HTC

Jujitsu LG, Motorola, Nokia, Samsung, Sony Ericsson as well as Palm Inc who are can easily

take away customers targeted by RIM.. Another threat is brought about the fast pace with which

technology is being brought forth. It is apparent that such technological changes come with

uncertainty that can bring down an organization (Fortune Magazine, 2009).

Similarly, issues about patent infringement are a threat to the organization. Additionally,

as the industry grows, there is need for professionals especially in telecommunication

engineering. Time will come that the supply will not be at par with the demand hence RIM will

not be in a position to acquire and replace its aging workforce.

8.0 Strategic alternatives are available for RIM
There are three strategic alternative for the organization brought forth after a research on

company analysis. These are a market development, product development and or market

penetration option.

Alternative 1: Product development

This options calls for employing a multifaceted plan in developing the company’s

products. Steps to attain this include raising the existing applications to Blackberry handset. This


is what Apple has managed to successfully accomplished in the iPhones. Ideally, co-branding

initiatives can also be used by the help of such software’s organization as Nintendo, which will

help to improve the gaming features, which will appeal to customers (Grooms, 2010).

Alternatively, to develop the product of the company, there is room for it to come up with

services for instance enhances handling of customers while addressing issues in regards to

hardware. RIM Ltd can also enter into green marketing where it recycles and refurbish handsets

used.

Alternative 2: Market development strategy

This kind of strategy main aim is to reach new market segment. There is no doubt that

there are a huge number of potential customers from a lower income category especially in

developing countries; this might offer the company with a profitable market for its products.

Analysis seem to show that RIM is about to attain its maturity stage or declining stage and an

option that will help it come out of this phenomenon is introducing its products at a much lower

prices. It would be a good initiative for the company to sell the older models at a discount as it

introduces newer versions. Similarly, as this goes on creation of a product depth can be done in

which it entails developing of Blackberry models having the same fancied images but with

unequal features like those in smart phones. A customer segment that includes students in

colleges, teenagers as well as new users of the model can fancy such simple versions.

Alternative 3: Market penetration plan

The aim of this alternative or option will be to raise revenues from the current clients the

company has as well as attracting new potential customers from the existing target market. The

major strategies employed to attain this will be intensive advisement, publicity and promotions.

RIM can for example provide various kinds of discounts to family members of their current


customers (Pearson & Gritmacher, 1990). This will enhance the existing customer loyalties

especially if the same is given to children who are the potential future customers of the

company’s product.

Increased and extensive promotion and advertisement through the various media; print,

TV commercials, Radio jingles and through the internet will help the company penetrate more to

the existing customer base. Alternatively, through various social responsibility initiatives, there

are chances that the organization for instance after sponsoring a sports tournament can gain

market advantage.

9.0 Pros and Cons of the alternatives
The advantages of the first alternative are; it will help increase market share of the

company’s products in the target market, customer loyalty will be enhance as well as

improvement in the company’s brand image. Additionally, co-branding will see to it that the

product perceived value is increased (Monczka & Guinipero, 1984).

On the other hand, the drawbacks of this alternative include the high cost incurred when

carrying out market research, there is also a possibility of diluting the brand image of the

company when it engages in co-branding and finally the whole activity is time consuming as

developing software are a complex activity.

Alternative two is advantageous in the following ways; products will be affordable, this

coupled with accessibility makes the company to easily conquer the new market segments, the

company will also be in a position to make profit from resources deemed useless and outdated

inventory. However, the alternative is characterized with the potential of diluting the company’s

brand, decreasing the perceived value of the company is other products due to its cheaper


products with fewer advanced features (Hempel, 2009). There is also the possibility of creating

communication gap as there will be fewer functions on the older models of Blackberry.

Market penetration as the third option can help the company to increase market

awareness of its products, through advertisement and promotion more individual will be able to

recognize the company’s brand. Lastly and more importantly, the whole plan will make the

company’s product to be more and easily accessible as online advertisement can be made with an

option of placing orders online.

Nonetheless, this option has potential drawbacks. These include high cost incurred when

establishing and running the entire promotion and advertisement activity, there is also the

possibility of losing revenue as a result of using discount in selling products and finally the

alternative is faced with limited growth capabilities in the current market Sako, 1992).

9.1 Selected alternative
In my opinion, alternative one, which is product development, is the best and opts to be

the solution to the current uncertainty facing RIM Ltd. Having in mind that stiff competition

brought forth by such companies as Apple, which produces sleek products with varied features,

can only is countered by the same but advanced products. Product development will see to it that

RIM comes up with new and advanced applications and software. Joining hands with such firms

as Nintendo, which is capable of helping the company improve on its applications for instance

gaming features, will definitely give it a competitive advantage (Watts et al. 1995).

The reasons for choosing this alternative stems from the advantages it brings which are; it

will help increase market share of the company’s products in the target market, customer loyalty

will be enhance as well as improvement in the company’s brand image. Additionally, co-


branding will see to it that the product perceived value is increased. All these will be possible

and at the same time helping the company to maintain market dominance.

9.2 Implementation
For RIM to successfully implement the chosen alternative, there are three vital

components that need to be closely followed. One program that needs to be in place is concerns

recycling and refurbishing. With this, there is need for the company to ensure that it acquires all

relevant supportive documents before embarking in the green initiative (Tanner, 1998). Old

devices will then be collected from the various locations and shipped to a central place where

sorting will be done. At this point, those units that can be recycled are re-sold while those that

are completely of no use are done away in away that are friendly to the environment.

Secondly, development of a wider range of software’s and applications is done to

enhance market share as well as perceived product value. In order to realize this, the company

will venture into co-branding initiatives with such organizations as Nintendo. Once the software

is developed, they will be made available to customers at affordable prices. Considering the fact

that most of the Apple’s software application is priced at or less that 0.99 dollars, RIM needs to

also have such a pricing strategy (Hempel, 2009). Customers will be able to visit RIM website to

download the applications. Similarly free version will also be made available for customers.

With all this initiatives carrying out promotion will help in developing the product. This

can be attained in part by RIM engaging in social corporate responsibility activities. Using

internet, TV commercial will be used to communicate the various applications developed by the

company. It will also be responsible to adequately budget for the whole process of

implementation as money will be needed to carryout extensive market research, marketing and


administration (Vuong, 2008). Ultimately, the successful implantation will ensure that the

company continues to grow and maintain it grip in the market.

9.3 Controlling the alternative
It is true that there is need to control the whole alternative because if it is left open, it

might lead to attainment of undesired outcome that might be self-defeating. The company needs

to have in place a committee made of professional in finance, marketing, environment,

procurement and law that will help over see the implementation of the project and that it does not

go beyond its borders (Lascelles & Dale, 1989).

9.4 Anticipated crisis
Based on the current political unrest especially in Islamic countries, the company needs

to be aware of the consequences that it may face as a result of political instability. There is also a

possibility of shortages of skilled and talented human resources. This is as a result of stiff

competition and the fast growth of the industry that needs engineers ranging from

telecommunication to other fields such as marketing (Wauters, 2009).

The future prospect of the company is bright provided it has in place strategies to counter

the negative impacts of the fore mentioned crisis that are anticipated. Having in mind that the

current generation is in ‘love ’ with new technological innovation, there will be market for its

product, however, there is need for RIM to strategized on how to conquer and find their way

through youths in developing countries with low incomes will help it. Secondly, with

technological innovation, the company will be able to meet the aspiration and demands of

customers hence capturing it target market despite the stiff competition it is currently facing.


10.0 Appendices
Financial ratio profile

Research In Motion stock performance as at December 2002


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Apple.pdf

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