professional skill coursework

1. RESEARCH IN MOTION (RIM)
INVESTMENT PROPOSAL 2011
The Giraffe Group
Alvin, Archish, Mandy, Jacquelin, Minh, Tung

2. CONTENT
• Executive Summary
• Company Overview and Competition in the Market
• Financial Analysis
• SWOT Analysis of Company Performance and Strategy
• Ethical Position
• Conclusion
• Recommendation

3. EXECUTIVE SUMMARY
• RIM is a multinational telecommunications company based in
Canada, founded in 1984.
• Most well known for the BlackBerry smartphone series.
• Ranked as the No. 1 fastest-growing company in 2009.
• One of the „Ten Best Companies to Work For in 2011‟.
• Has good fundamentals and business operations.
• Highly recommended for potential investors.

4. COMPANY OVERVIEW AND
COMPETITION IN THE MARKET
Marketing Mix – The Four P’s
1.Product
• Blackberry is characterised by its convenient communicating and
networking function
• The „BlackBerry Enterprise Server‟
• The BlackBerry Messenger
• The trademarked QWERTY keyboard

5. 2. Place
• Headquarter is located in Ontario, Canada.
• Branches worldwide
• Orders can be placed on the Blackberry website

6. 3. Promotion
• RIM has a high budget for promoting BlackBerry

7. • 4. Price

8. DEMOGRAPHIC MARKET SEGMENTATION
• RIM BlackBerry focuses on enterprise consumers as their security
protection is reliable
• The „BlackBerry Enterprise Solution‟ (BES) is the only smartphone system
“approved for use with restricted data Government departments and
organisations.”
• The popularity of its design attracts young users.
• The non-touchscreen feature is appropriate for elderly users.

9. GEOGRAPHIC MARKET SEGMENTATION
Geographic Revenue Mix
UK UK
10% 11%
Canada Canada
5%
US 7%
39%
US Others
58% 27%
Others
43%
2010 2011

10. UNIT SALES
Research In Motion HTC Apple (iPhones)
Year 2009 2010 2011 2009 2010 2009 2010 2011
Revenue 9,090 14,593 19,907 4,786 9,234 13,033 25,600 47,100
Units sold 26 36.7 52.3 11.7 24.7 20.7 40 72.3
Unit sales 349.62 397.63 380.63 408.68 374.27 628.67 640 651.45

11. FINANCIAL ANALYSIS
Income Statement Analysis: Gross Profit and Net Profit

12. FINANCIAL RATIOS
Research In
Ratio HTC Apple
Motion
Current Ratio 1.9 1.3 1.6
Liquidity Ratio 1.4 1.1 1.3
Gearing 0.1 0 1.5

13. FINANCIAL RATIOS
Research In
Ratio HTC Apple
Motion
Return On Assets
20.5% 21.9% 22.3%
(ROA)
Price-to-Earnings
3.2 6.4 13.5
Ratio

14. FINANCIAL RATIOS
Research In
Ratio HTC Apple
Motion
Gross Profit
46.4% 28.9% 42.2%
Margin
Net Profit Margin 16.01% 14.05% 23.95%

15. SWOT ANALYSIS
Strengths Weaknesses
• Strong fundamentals • Strong competitors
• Powerful brandings • Lack of creative applications
• Excellent design
• Developer zone

16. SWOT ANALYSIS
Opportunities Threats
• Clientele expansion • Service failure
• Advertising with famous people • New entrance and substitute
• Asian focus

17. ETHICAL POSITION
Employees Society
• Free BlackBerry phones • Significant role in 2011 UK‟s riot
• “Work, home and you” • Personal privacy is highly
protected.
• “Healthy @ RIM”

18. ETHICAL POSITION
Personal privacy and security Environment
• Largely invested in new security • No external verification for data
technologies on greenhouse gas (GHG)
emission
• Cause monitoring difficulties to
• Accused of not having a clean
governments
electricity plan
• Did not set a target on reducing
GHG emission

19. CONCLUSION
Taking all aspects of the company into account, we believe that Research In
Motion Ltd has a very promising future. Although competition is very strong in
the telecommunications market, it has its own unique stance and clientele in
the market which will not be affected by developments of other companies.
We expect to continue seeing many BlackBerry users both in business and
personal.

20. RECOMMENDATION
Invest a significant amount of the portfolio in RIM and
buy their shares as soon as possible

21. BIBLIOGRAPHY
• http://money.cnn.com/magazines/fortune/fortunefastestgrowing/2009/snap
shots/1.html
• http://www.eluta.ca/top-employer-rim