Rim-Internal Analysis Essay

767 Words Feb 17th, 2011 4 Pages
An International Management Applications Paper – Research in Motion (RIM)

Title of Article: “Time to Pick BlackBerry Again?”
Source and Date: The Wall Street Journal NOVEMBER 9, 2010, 1:44 P.M. ET

Author: MARTIN PEERS

Summary of Article:

This article talks about why Blackberry maker RIM may still have hope in the smartphone industry; meanwhile acknowledging that there is no longer any debate that BlackBerry is yesterday's technology. According to the article, RIM's once irrefutable position among business and government customers shows signs of eroding, as rivals like iPhone maker Apple make inroads. Competitive pressure in the U.S. is likely to increase if, as expected, Verizon Communications’ majority-owned
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Several carriers have expressed the view to us that they would at least like to have an alternative offering in their portfolio alongside BlackBerry. RIM has a unique offering and strategy according to the article since it was the first company to understand that mobile applications need to be delivered as part of an integrated package, including hardware, software and services, that is both complete and simple to use. RIM’s business model is also a strong weapon against the competition, as it enables its resellers to charge for maintenance and support as part of a subscription, rather than charge an annual fee. This remains RIM’s main strength and weapon against its competitors.

Recommendation:

I would think that it’s in the interest of RIM to spend a good amount of their revenue on integration and implementation at the least. For instance, their tablet announcement indicates this is a company that doesn’t spend money when it comes to promotions and innovation. RIM's share of the smart phone market fell to 15.3% in the third quarter from 19.9% a year earlier, according to IDC (International Data Corporation). They need to make their smartphones better and more competitive, not branching out beyond their core competency into other areas where there are already plenty of competitors. Blackberry was built on providing unique functionality - reliable, secure e-mail that you can get…

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