Introduction

BlackBerry is a line of mobile e-mail and Smartphone devices developed and designed

by Canadian company Research in Motion (RIM) since 1999. BlackBerry functions as
a personal digital assistant with address book, calendar, memo pad, and task list
capabilities. It also functions as a portable media player with support for music and video
playback and camera and video capabilities.
BlackBerry is primarily known for its ability to send and receive (push) Internet e-mail
wherever mobile network service coverage is present, or through Wi-Fi connectivity.
BlackBerry has the ability to use wireless data efficiently while using less power than other
phones; three Blackberry’s use the same wireless spectrum as only one other Smartphone.
BlackBerry's push gives BlackBerry devices a long battery life. All data on the phone is
compressed through BlackBerry Internet Service (BIS).
BlackBerry commands a 14.8% share of worldwide Smartphone sales, making it the fifth
most popular device manufacturer after Nokia, Samsung, LG, and Apple. BlackBerry Internet
Service is available in 91 countries worldwide on over 500 mobile service operators using
various mobile technologies.  All models except for the Storm Series had a built-
in QWERTY keyboard, optimized for "thumbing", the use of only the thumbs to type.
Blackberry has nickname in people as “crackberry”

Products
 Early Pager Models: 850, 857, 950, 957
 Monochrome Java-based Models: 5000-series and 6000-series
 First Colour Models: 7200-series, 7500-series and 7700-series
 First Sure Type Phone Models: 7100-series
 BlackBerry Pearl
 BlackBerry Pearl Flip 
 BlackBerry Curve 8300
 BlackBerry Bold (9000)
 BlackBerry Curve 8900
 BlackBerry Tour (9630)
 BlackBerry Storm (9500/9530)
 BlackBerry Curve 8520/8530
 BlackBerry Storm 2
 BlackBerry Storm2
 BlackBerry Bold Series
 BlackBerry Bold 9700
In 2010

 BlackBerry Bold 9650 (9650)

 BlackBerry Bold 9780 (9780)
 BlackBerry Pearl 3G 9100/9105 (9100/9105)
 BlackBerry Torch 9800
 BlackBerry 9300
 BlackBerry Style 9670

In 2011

 BlackBerry Bold 9900

 BlackBerry Curve 8980
 BlackBerry Storm 3

Micro environment
Competitors

 Android
 Windows Phone7
 WebOS
 iPhone
 Motorola
 Nokia

Government

Some countries have expressed reservations about BlackBerry's strong

encryption and the fact that data is routed through Research In Motion's servers, which are
outside the legal jurisdictions of those countries.
The United Arab Emirates and Bahrain were reportedly considering the BlackBerry as
a "security threat" for this reason, with the former having earlier been reported as trying to
get users to install an "update" on their BlackBerry devices, ostensibly for performance
enhancement, but which turned out to be spyware that allowed phone call and email
monitoring.
The update and subsequent performance deteriorating spyware were reportedly
generated by UAE company Etisalat, about which it commented minimally.
Other countries threatening to ban the use of the BlackBerry Messenger include 

 Algeria,
 Indonesia, 
 India, 
 Pakistan and 
  Saudi Arabia.

Government regulation in INDIA

Indian authorities have asked RIM to provide means to access the encrypted data for
calls to, from, or within India, following concerns that it could be used by terrorist and rebel
groups to carry out attacks on India. In the November 2008 Mumbai attacks, terrorists used
mobile and satellite phone technologies after which security agencies and the Indian
government have become more strict and alert towards communication within the country.

BlackBerry has indicated willingness to set up a server in India by October, 2010 and
giving the country limited access to its encryption technology. However, this will only apply to
personal devices which route via RIM's infrastructure: organisations providing their own
BlackBerry Enterprise Server will continue to have encrypted message flow, to which even
RIM themselves will not have access. On January 31, 2011 India refuse limited access offer
and want full access.

Market Share

Blackberry’s market share in its home country (US).

Macro Environment
PEST Analysis

Political

In light of the recent election, a new tax plan has been created by the Obama
administration regarding corporate tax policy. Currently, the United States has one of
the highest corporate tax rates when compared to other industrialized nations. The
‘statuary’ corporate tax rate (CTR) is 39.3%, compared to Irelands CTR of 11%
(Farley, 2008), and Britons CTR of 28%( Werdigier, 2008). In developing nations
the CTR is also relatively lower.

China’s CTR is 25% for domestic firms and 15% for foreign companies. The
new administrations Tax plan includes cutting corporate tax rates for companies that
create jobs in America, and giving tax credits for Research & Development
expenditures. Obama will also discontinue numerous tax loopholes for corporations.
Anytime a tax rate is reduced the cost savings from not paying the decrease in the
tax rate will put more money in the corporation’s hands.

They can use the savings to pay dividends to stock holders, buy securities, or
reinvest in growing the company. In addition, a more profitable a company is the
more appealing their stock is to an investor. However, this will depend on how much
the tax loopholes save corporations already. In regards the plans R&D tax credit,
giving tax credits to technology intensive industries like Diversified Communication
Services will incentivize them to do what they do a lot of already—reinvest more into
R&D.
However due to the recent economic crisis, the United States and Canada
government have increase their government spending to fix the crisis. This will raise
large budget deficits for both countries (Joining the Stimulating Party, 2009), income
and corporate tax rates will be increased in the future. Even though increasing tax
rates will lower their budget deficits, consumers and businesses will suffer greatly.

This will affect the industry because consumers demand for communication
devices like the blackberries and iphones will decrease and businesses will have
less money to reinvest in their company and their production. Despite government
efforts to encourage globalization and research and development, with higher taxes,
we could see economic growth suffer especially in this industry.

Economic

The economic factors that affect the Communication Service Industry’s

economic growth in the United States and Canada are trade barriers, foreign tax
rates and interest rates. With the emergence of globalization, the United States and
Canada have been striving to remove trade barriers with other nations, especially
developing nations, to help expand economic growth across the globe. These
developing nations have increased their foreign investments into Canada and the
United States.

Which have provided reinvestment opportunities for businesses especially in

the Communication Service Industry. Businesses like Apple and Research in Motion
are starting to introduce their products in these developing markets which has helped
expand their market to not just developed nations, but to developing nations as well.
Canada’s government also encourages research and development in these
businesses by offering tax credits (Information and Communications, 2008). With the
help from foreign investors and their government; these businesses will have a
comparative advantage and create sustainable economic growth.
From the previous section, we mention that the United States and Canada
have one of the highest corporate tax rates in the world. With developing countries
like China and other Asian countries that have much lower tax rates, we could see
an economic growth of the communication industry in these countries. These
countries are already having a steady increased in their market share (Mobile
Phones in Asia 2008, 3-5) and as long as they encourage low taxes, economic
growth should accelerate once this economic crisis has been averted.

The last economic factor that will affect the Communication Service Industry is
monetary policy and interest rates. With our current global crisis, the majority of the
developed nation’s central banks have decreased their interest rates to help
stimulate the economy (Further Monetary Easing, 4). With these low interest rates,
the cost of borrowing and the saving rate will decrease, encouraging consumers to
buy more consumer goods rather then save their money. This will help the industry
because there will be increased consumer demand for goods such as Blackberries,
iPhones and other communication devices. As a result, companies like Research in
Motion and Apple will increase their supply to meet their consumer demand.

To accompany low tax rate, China’s monetary policy also keeps their currency
artificially low (China 2008, 19), so foreign companies will find their cheap goods
attractive. With the removing of trade barriers and globalization, many foreign
countries are looking for the to trade for cheapest goods. With China’s weak value
currency, they can create cheap goods in the Communication Industry and spur
economic growth in this sector along with their low corporate tax rates. However due
to China’s low value currency, Countries like the United States and Canada are
pressuring China to appreciate their currency, so we could see a trade and currency
war between developed and developing countries (China 2008, 19-20).
Reducing trade barriers, foreign tax rates and lowering interest rates will help
create economic growth for the Communication Service Industry. However with the
high probability of increased tax rates could reduce the economic growth that could
have been produced by the other economic factors.

Sociological

The communication industry is entangled greatly with sociological factors.

Mobile devices have become a fashion statement as well as a primary way to
communicate. As a result, these industries must focus on finding out what
consumers are looking for regarding mobile devices and must find ways to capitalize
on some markets while looking for ways to get into those markets left untapped.
One social aspect regarding this industry has to do with the health
consciousness of society. Many people have health concerns regarding mobile
devices. There are fears of getting conditions such as cancer circulating among
many people. There is debate in the medical community regarding whether citizens
should be concerned about a potential connection between mobile devices and
conditions such as brain tumours. According to an article in Business Week, there
has been no conclusive research linking mobile devices to these conditions.
However, a comparison is used in the article stating that “’it was 15, 20 years after
people began smoking that we saw concerns associated with it…down the road, the
same could happen with phones’”. Although there has yet to be any concrete
evidence linking usage to health conditions, this is still something that needs to be
kept in the minds of those in the industry. When one considers the potential that
these health concerns could turn out to be proved true years down the road.
Another social aspect to be considered is population growth. Overall, the
population is increasing, which provides good news to this industry. A higher
population provides for more potential customers and a variety of different types of
markets. The variety of different markets throughout the population provide for many
different opportunities regarding this industry. One particularly large market for
communications products is the corporate world. The BlackBerry, for example, is
extremely popular among businesspeople. According to an article on the Fox
Business website, “’The BlackBerry is now a manifestation of self worth from a
professional standpoint…it makes people feel more important to be tapping on a
BlackBerry rather than talking to the lady next to them. There’s a feeling that if you
don’t appear connected than you’re not busy’”. Mobile devices have been integrated
largely in the world of business and have become practically a necessity.

Technological

The corporations in the communications industry are in a constant race to be

the first to have the newest phones with the latest technology. As a result, research
and development play an imperative role in these companies because of the fact that
they all want to be known as the innovators. Corporations in the mobile phone
industry are constantly trying to outdo each other with having the newest, trendiest,
up-to-date technology.

This rush to the market made the BlackBerry lacking in fundamental

Smartphone qualities that the consumer was used to. Consumer’s claimed “the
accelerometer that senses and changes the view on the screen when it's turned on
its side is slow. And sometimes the "sure press" screen is difficult to use because it
registers the wrong character (Reardon, 2009). These problems may be due to the
rate of technologies change and the want to be the first out.

The rate of technological change in this industry is very fast as a result of the
need to be the first and the best when it comes to having the newest features.
“Mobile phones were as much a fashion statement as anything else” (Bancroft,
1997). One factor to be considered is the fact that what at one particular moment
might be considered the most up-to-date technology can, in a very short period of
time, be considered yesterday’s news.

Certain mobile technologies even become obsolete over what can be

considered a relatively short period of time. For example, having a mobile phone
that could also act as a camera was, only a few years ago, considered the latest
technology. Today, cameras come standard with most mobile phones. “Advanced
features and services such as cameras, MP3 players, multimedia messaging, email
and mobile TV are increasingly offered as base capabilities on new phones rather
than as extras” (Bancroft, 1997). We will continuously see an increase in
Smartphone abilities as well as structure.

SWOT analysis

Strengths

 RIM grown to a $5.2billion company.

 RIM core technology centres on radio technology and mobile communication.
 Research and development is a key success to RIM.
 RIM’s product gives up $85 million in revenues and $10.5 million in net
income in 2000.
 RIM 850, 950, and 957 products have a software package that allows the user
to access email “anytime anywhere.”
 RIM and Intel “Most Successful Alliance in North America.” By awarding them
in 1999 Canadian American Business Achievement Award.
 RIM had relationship with community software, technical support, and
discussion forums with its “Developer Zone.”

Weaknesses

 They were providing the advance technology product.

 Blackberry prices were high.
 They have to come up with some solution to better their new product than
Motorola.
 The internet service should be faster to login to email system.
 RIM is not application development.
 They hired third parties to develop the application for Blackberry devices.

Opportunity

 Great product with advance technology.

 Lots of features in Blackberry.
 Fulfil the customer needs and wants.
 RIM was doing well in the market
 Brand loyalty.
 They know what their customer wants.
 Leading-edge radio technology.
  Some famous communication product was already in the market for example
pagers.
 They were first in the market for their famous product Blackberry.

Threats

 Competition between Motorola.

 Motorola had some good product to compete with RIM blackberry.
 Nokia, Ericsson, and Motorola are the major components of email capable
mobile phones.
 Nokia largest cell phone provider.
 Motorola has strong brand appreciation with the consumer market.
 Motorola know how to promote their product in to the market.
 Motorola have good relationship with National Football League (NFL).

Four P’s
Promotion

 Overwhelming majority use review websites which shown to have a significant

negative effect in our linear regression analysis.
 Need to find a way to improve BlackBerry image on review websites.
 Word of mouth is also a significant with target market.
 Paper advertisements, social media, website advertisement, and TV ad’s.
 RIM will communicate benefits of the BlackBerry Sky to consumers
 through tailored ad campaigns, internet marketing, viral marketing, social
media channels and exclusive offers to current and new customers Products.

Product

 BlackBerry product first launched in 1999

 Wide range of Wireless Service Providers (AT&T, Verizon, Sprint and all
major global providers)
 41 Million units sold in 2009
 80+ Million units currently in use globally
 Introduced in 2007 with AT&T as the exclusive provider
 3G version launched in 2008 with high-speed data
 3GS version launched in 2009 with faster data throughput rates, higher
resolution camera and updated OS
 43 Million units sold as of Jan. 2010
 Up until now, RIM has revolutionized mobile communication devices with the
BlackBerry Smartphone. The idea would be to enhance product depth by adding
a new BlackBerry to the product line by creating a multi-media device to better
satisfy consumer needs. By enhancing the Smartphone features and ultimately
redesigning the BlackBerry, the product will attract consumers and dominate
market share.

price

 The price point will be set by the competitors’ pricing strategies.

 customers that desire the satellite service, an additional charge will be
predetermined.

place

 The BlackBerry Sky will be distributed through North American and Global
service carriers, retail outlets, and through the BlackBerry promotional website

Product Life Cycle

 Research has indicated the BlackBerry is in the maturity phase of the life
cycle and must develop strategies accordingly.
 market penetration through brand awareness and place of distribution
 market development through further globalizing BlackBerry products
 product development through adding to BlackBerry product depth and brand
extension by introducing a new product under the BlackBerry brand

Method of product pricing

 Direct Business method

 Mass customization
 Mark-up pricing
 Strong promotion pricing
 Market penetration pricing
 Market skimming pricing
 Promotional pricing
Channel of distribution

In home country

Blackberry

Agencies

Showrooms

Customer

In International market

Blackberry

Foreign Distributer

Showroom

Customer

Customer relationship management

 Visibility into account histories, current order status, available

inventory, customer credit standing, accounts receivable, etc. - This kind
of information provides the sales person with what they need to make a smart
decision about what they can do for their customer – or even if the opportunity
with the customer is legitimate and worth their time.It also allows them to see
what up-sell and cross-sell possibilities exist – while they are on the way to
the customer or even at the customer’s locale.
 Remote order entry - Not only can sales handle an order on the spot, but
they can track the progress of the order as it wends its way through the
various demand chain, supply chain and financial systems at the company –
 and let their customers know the status in real-time. THAT can make for a
very happy customer who might even take you out for a beer afterwards.
Unless of course, you used the media you had available on the device to give
him the status update – via phone, email, SMS or some web based service.
 Customer value – the ability to provide the customer with the information
they need in the format they want – whether it be a text file, a PowerPoint®, a
PDF or Word file or, as bandwidth and devices improve, video presentations –
on a mobile device is almost immeasurable. The customers are getting their
needs met in real-time which can only improve the possibilities of a sale.
Since we are dealing with an empowered customer, one who basically wants
what they want, and this gives the opportunity for a much more real
collaboration with that customer to the account rep who is sitting there –
without that account rep even standing up on his/her tired feet.
 Improved customer contact – As simple as this sounds, as benign as its
success can often be (though fabulous sometimes), the results of the failure
to be in touch with customers is truly dramatic. Heed Paul Sweeney, Search
CRM Board of Advisors member and European Marketing Director at the Irish
company, Voice Sage: "The ability to contact a customer, and resolve an
issue, is really only relevant where it directly collapses the time it takes to
complete a process. A sales value is realized when their money hits your
account. Research conducted in February 2006 by Intrum Justitia, a division
of one of the largest credit management companies in the world, concluded
that the average company needs to increase revenues by $10 million to cover
the affect of a $700,000 hit to cash flow from late payments. With the average
outstanding payment time in Ireland being 50 days for consumer purchases,
the ability to collect payments in a more timely fashion is clearly one process
where mobile CRM could make immediate and quantifiable impacts.
 Business/customer intelligence – This does not mean the ability to do the
analytical work on the mobile device, because the processing power
necessary for that simply is not there – at least not yet. However, what does
exist is the capability to pull reports from the back office servers that are doing
the actual number crunching. For example, General Binding Corp won the
Gartner 2006 CRM Innovation Award by developing a CRM focused "closed
loop" process that leverages and consolidates critical sales, contact centre,
and field service data across the enterprise. An integrated mobile solution
extends the competitive advantage to the field with quick, efficient, and timely
information that enhances their customer’s experience and provides effective
service and information on potential sales opportunities besides. For example,
Business Objects is now offering a CRM analytics dashboard for mobile
devices, which provide access to data that the system has already analyzed.
These advances in technology can give mobile users access to information to
develop insight rather than just the level of information to sound intelligent or
to carry out a function. This level of intelligence could also allow executives in
 the field to make better qualified presentations to customers or even do things
such as staff reallocation or on the fly resource shifts – without ever having to
even think about a workstation.
 Email Access - Innumerable studies have shown that just having the ability to
check your email while in a cab or other “anytime, anywhere but the office”
location, saves an hour a day and increases the available time to do
productive work. I’d source them for you, but they literally would double the
size of the white paper and I suspect that any of you reading this can already
figure that one out because you check your email on the go all the time. This
is already so prevalent that Gartner in the same report from their recent CRM
conference mentions that by 2008, they see 100% of the smart phones and
60% of all enhanced phones having wireless email as a built in application.
 Sales Management Benefits – I think that those of you reading this in sales
management, at least in theory, believe that mobile CRM will drive upticks in
the sales results. In studies quoted by Richard Hill at Powerhomebiz.com of
mobile CRM use, he cites the following: “82% believe PDA access for sales
representatives would drive field usage of CRM and 91% believe mobile CRM
software on PDAs will become an important sales tool for their organization.”
So, the awareness is there. But what are the specific benefits to you? Pipeline
visibility in real time; easier and multichannel communication with your sales
or field service folks; an empowered sales force that likes you because you
provide them with what is both cool and makes them more productive. Thus, a
sales force that will sell more and better.
 ROI benefits/soft & hard – Return on Investment has been hard to quantify
in the SFA or BI CRM arenas because they are relatively young. However,
where you see a mature mobile CRM – for example, field service – the ROI is
much easier to quantify. In a recent article in Mobile Enterprise magazine,
William Clark, a VP in research communication at Gartner took a cut at mobile
CRM’s ROI. “There are really two classes of return on investment for mobile
CRM. The first is a ‘softer,’ subjective set of benefits.” These include morale
builders like greater personal satisfaction with work, or increased
convenience. These are what I always have called in my 4 rules of CRM, the
“self-interest” factors. They might include contacting multiple users in a sales
team using a mobile CRM e-cast. “These benefits are running at less than 50
percent ROI annualized,” Clark asserts. “A second and more interesting [class
of ROI] is in mobile field service. Technicians can be travelling out in bands or
within the four walls of an institution. Yet depending on a lot of variables,
typically what we see exceeds 200 percent ROI annualized, and that makes a
very compelling investment.”

STP

Targeting
  Traditionally, Blackberry phones have been targeted to business
professionals only.  The blackberry also targets the business professional with
wireless connectivity ability on the go for faster paced Internet connections
when the user needs it most.
 Blackberry has also made a push with the younger generation capturing style
and function. 
 The major target market consumers is between the age of 30 and 50 who
work in the business world. 
 In term of product development, the Asian market should be specifically
targeted due to the recent demand for technology that these countries have
experienced.
 Age 30's Sex 50/50, M/F Income 75K - 125K.

Positioning

 positioned in minds of the customers as the high end featured multimedia

Smartphone category

Segmentation

 blackberry

New product development

The current capabilities of the BlackBerry Storm2 will not be enough to meet
changing consumer expectations in the long run. RIM can grow its North American
and Global market share by adding a BlackBerry series the to product depth 6 under
the breadth of mobile communication devices.

The BlackBerry Sky will feature increased multimedia and application

capabilities, non-scratch recycled metal, a full LED touch screen in combination
Qwerty keypad on the reverse side of the device, and a satellite service option for all
customers. The satellite service will offer a greater value and higher utility for
customers who want to use their mobile device anywhere in the world.
 Adding Blackberry Sky to the Blackberry product line would create and deliver
value by satisfying the changing needs of current and new customers in targeted
segments. This alternative would sustain growth, as a new product creates incentive
for customers to continue purchasing BlackBerry products and provide higher utility
with the added features.

With a complete product line, BlackBerry will be able to withstand external

threats from competitors. The new BlackBerry Sky will induce a sales boost as new
products generate a large percent of revenues and dominate over other brands.