Rim: Case Study
Comm 401
Research In Motion: Case Analysis
Comm 401
Research In Motion: Case Analysis
Table of Contents
Introduction1
External Analysis1-3
Porter Analysis1-2
Pestel Analysis3
Internal Analysis3-6
Resource Analysis4
VRIN Analysis4-5
Capabilities Analysis5-6
Conclusion6
Works Cited7-8
Appendix 19
Introduction
Research In Motion (RIM) is a Canadian multinational telecommunications company that designs, manufactures and sells cellular phones and other communication devices. RIM’s success started in August 1998 when they launched the inter@active pager 950. In 2003 RIM became one of the most recognized brand names with the introduction of their most popular device the BlackBerry. In June 2011, RIM announced that their revenue was going to drop for the first time in eleven years. From June 2008 to June 2011, RIM's shareholders lost almost $70 billion (The Economic Times 2011). The following paper will analyze and compare different strategies and which factors have ultimately led to RIM’s recent financial decline.
External Analysis
Porter Analysis
* Buyer Power- Moderate to low
There are a few different factors that affect buyer power. One is the volume that a buyer demands. Typically, a single consumer will only need one cell phone, possibly two if they need a work cell phone. Another factor affecting buyer power is the amount of buyers relative to the amount of firms in the industry. In Canada, there are few different brands a consumer can choose from if they are unsatisfied with their BlackBerry product. Outside of North America, the selection grows greatly. There are many more choices of product and minimal differentiation (other than the BBM feature which is unique to BlackBerry) which increases the consumers buying power. However, the price structure is generally the same between similar products. Additionally, consumer’s buying power is increased due to the fact that cell phone’s demand is highly elastic and
Research In Motion: Case Analysis
Comm 401
Research In Motion: Case Analysis
Table of Contents
Introduction1
External Analysis1-3
Porter Analysis1-2
Pestel Analysis3
Internal Analysis3-6
Resource Analysis4
VRIN Analysis4-5
Capabilities Analysis5-6
Conclusion6
Works Cited7-8
Appendix 19
Introduction
Research In Motion (RIM) is a Canadian multinational telecommunications company that designs, manufactures and sells cellular phones and other communication devices. RIM’s success started in August 1998 when they launched the inter@active pager 950. In 2003 RIM became one of the most recognized brand names with the introduction of their most popular device the BlackBerry. In June 2011, RIM announced that their revenue was going to drop for the first time in eleven years. From June 2008 to June 2011, RIM's shareholders lost almost $70 billion (The Economic Times 2011). The following paper will analyze and compare different strategies and which factors have ultimately led to RIM’s recent financial decline.
External Analysis
Porter Analysis
* Buyer Power- Moderate to low
There are a few different factors that affect buyer power. One is the volume that a buyer demands. Typically, a single consumer will only need one cell phone, possibly two if they need a work cell phone. Another factor affecting buyer power is the amount of buyers relative to the amount of firms in the industry. In Canada, there are few different brands a consumer can choose from if they are unsatisfied with their BlackBerry product. Outside of North America, the selection grows greatly. There are many more choices of product and minimal differentiation (other than the BBM feature which is unique to BlackBerry) which increases the consumers buying power. However, the price structure is generally the same between similar products. Additionally, consumer’s buying power is increased due to the fact that cell phone’s demand is highly elastic and
Cited: Awesu, T. (2011, October 14). RIM: Brand Equity Is All You’ve Got. Retrieved May 24, 2012, from Press Room Media: http://pressroommedia.wordpress.com/2011/10/14/rim-brand-equity-is-all-youve-got/ Clegg, Stewart, et al. Strategy: Theory and Practice. London: SAGE, 2011 Halliday, J Henkes, M. (2011, October). Blackberry service improves but brand damage is done. Retrieved May 27, 2012, from TelecomsTech: Global mobile statistics 2012: all quality mobile marketing research, mobile Web stats, subscribers, ad revenue, usage, trends. Retrieved May 26th, 2012 from http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats Mies, G Irrelevant. Retrieved May 24, 2012, from PC World: http://www.pcworld.com/businesscenter/article/238854/rim_on_the_edge_without_in novation_blackberry_will_soon_be_irrelevant.html RIM pressuring suppliers (2009, April 13) Tolentino, M. ( 2012, April 20). RIM To Open Source BlackBerry OS. Retrieved May 26th, 2012 from http://siliconangle.com/blog/2012/04/20/rim-to-open-source-blackberry-os-samsung-preps-cloud-service/ Perez, R (2011, January 7) The Economic Times: RIM takeover beckons MS with cheapest multiple ( June 22, 2011). Retrieved May 27, 2012 from http://articles.economictimes.indiatimes.com/2011-06-22/news/29689800_1_rim-mike-lazaridis-jim-balsillie Appendix 1