Rim Internal & External Analysis
Internal Analysis
RIM, one of world leaders in mobile communications market, stepped into the telecommunication industry with its pioneered BlackBerry products. The BlackBerry’s wireless platform and line of handhelds provides remarkable functions with fully integrated e-mail, browser and organizer applications which today made one of the leaders in wireless mobile communication.
RIM’s Successful Strategies
With worldwide demand for wireless handheld’s, RIM quickly identified the market potentials which saw them launching BlackBerry products with outstanding functions. Eventually, this lead to their explosive growth with revenue skyrocketing to $6 billion. However, a corporate giant cannot reach such heights without deploying thriving strategies.
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In conclusion, given the present scenario of the market and intense completion, RIM would find it difficult to expand and compete with the existing strategies. Therefore, RIM must significantly increase their R&D expenditure and alter the geographic expansion, human resource management, and acquisition strategies in order to survive in a competitive industry that thrives for innovation.
External Analysis
RIM, makers of the very popular BlackBerry, spent almost $360 million in R&D in 2007, this number was low compared to its largest competitors, both in absolute numbers and as a percentage of sales (e.g. Nokia spent $8.2 billion and Microsoft spent $7.12 billion on R&D). (Appendix, Fig1, pii). It is therefore vital to clearly define the various aspects of the current competitors and new entrants of the wireless communication industry. The major competitors include Motorola, Nokia, Microsoft, Apple, Palm, Samsung and Sony Ericsson. The issues below discuss different dimensions on which RIM compete in the market. RIM shows the highest increase in Revenue compared to its competitors from 2006-2007, but its R&D expenditure to sales percentage fell from 7.77% to 5.99%.
Apple
Software: Apple’s new
RIM, one of world leaders in mobile communications market, stepped into the telecommunication industry with its pioneered BlackBerry products. The BlackBerry’s wireless platform and line of handhelds provides remarkable functions with fully integrated e-mail, browser and organizer applications which today made one of the leaders in wireless mobile communication.
RIM’s Successful Strategies
With worldwide demand for wireless handheld’s, RIM quickly identified the market potentials which saw them launching BlackBerry products with outstanding functions. Eventually, this lead to their explosive growth with revenue skyrocketing to $6 billion. However, a corporate giant cannot reach such heights without deploying thriving strategies.
`
In conclusion, given the present scenario of the market and intense completion, RIM would find it difficult to expand and compete with the existing strategies. Therefore, RIM must significantly increase their R&D expenditure and alter the geographic expansion, human resource management, and acquisition strategies in order to survive in a competitive industry that thrives for innovation.
External Analysis
RIM, makers of the very popular BlackBerry, spent almost $360 million in R&D in 2007, this number was low compared to its largest competitors, both in absolute numbers and as a percentage of sales (e.g. Nokia spent $8.2 billion and Microsoft spent $7.12 billion on R&D). (Appendix, Fig1, pii). It is therefore vital to clearly define the various aspects of the current competitors and new entrants of the wireless communication industry. The major competitors include Motorola, Nokia, Microsoft, Apple, Palm, Samsung and Sony Ericsson. The issues below discuss different dimensions on which RIM compete in the market. RIM shows the highest increase in Revenue compared to its competitors from 2006-2007, but its R&D expenditure to sales percentage fell from 7.77% to 5.99%.
Apple
Software: Apple’s new