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by Mr. Michael Lazaridis , the company's President and Co-Chief Executive Officer, and Mr. Douglas Fregin (RIM-2009). The company then grew in to one of the leading designer and manufacturer of wireless solutions, the company product portfolios include the blackberry wireless solution and other software and hardware solutions. The major markets of the company include North America, Europe and Asia Pacific (RIM -2008). RIM generates most of its revenues through the blackberry wireless device with various features which provides a user friendly interface. Although the company has been growing since its inception. In early 1990 s the company was focussed on developing wireless data technology but by far the significant year for the company was 1999 when it introduces the blackberry solu tions and in following years it has launched many advanced models of blackberry solutions in partnership with various service providers which includes Yahoo, AOL, MTN, Qtel etc.(RIM -2008).The company has recorded a revenue of US$14.935 million in the finan cial year 2010 which is an increase of 35% compared to FY 2009 with USA alone accounting for 57% of the revenue. The devices accounted for 81% of the revenue followed by service (14.4%), software (1.7%) and other (2.8%). (RIM -2010). Although the company is doing very well financially, it is not immune the pressure of external forces and following section highlights some of the external forces impact on RIM. PESTEL ANALYSIS The pestel analysis provides an insight in to the factors which will affect the industry which in turn will also affect the companies that operate within the industry (Johnson et al 2008). Political The fairly friendly political climate in North America especially in USA has helped the smart phone industry especially RIM to flourish as the recent survey by Nielsen pointed out that the users of smart phones will overtake feature phone users by 2011(Nielsen wire 2010) . The actual challenge for RIM has been in countries like China, India and UAE where the countries have raised concerns over the security feature the blackberry provides to users as it becomes hard to monitor for the government authorities (BBC 2010). RIM has also been scrutinised in countries like Saudi Arabia, Indonesia, Kuwait, and Egypt for the above mentioned reason (Guardian 2010). Another major political concern is that some of the European countries like UK, Germany etc have imposed strict regulations with respect to hygiene and safety standards for manufacturers which may impact the operations of RIM as faces pressure from the usage of toxic contents, energy usage and recycling( Farrar.j 2009) Economic The economic factors plays a key role in the smart phone industry as the demand
lifestyle.is fairly elastic and it is mostly based on consumer income but the recent economic downturn has had an impact as people are not willing to spend on a product unless the price is right and it offers the promised values but the smart phone industry is expected to grow at fairly steady pace and the developing economies of India.or prohibitively expensive. the holiday season (Jaroslovsky. Latin America provides a platform for RIM (economic times 2009). The exchange rate fluctuation can have a profound on blackberry especially in price sensitive markets like India and China.R 2010) and another huge socio cultural factor which have an impact on RIM is the ever incr easing usage of blackberry by anti social elements which will have an impact on the brand image of the company and its product because the consumer markets in religiously sensitive countries may visualise the product as integral part of anti social elements operations and business markets may decline to use the product since strict regulations of the government following the usage of products by anti social elements will hamper the products performance. Technological The technological factor has a huge impact on the industry as a whole and in particular RIM s product. China. The blackberry smart phones as such are highly adaptable to technological changes as it can be used with various advanced services like HSPA/UMTS (high-speed packet access/ universal mobile telecommunications system). and iDEN (integrated digital enhanced network) (RIM 2009) Environment The environmental aspect also has a huge impact on the industry as the manufacturers must comply with various environmental standards and RIM over the years have ensured that the standards of manufacturing are fairly ecofriendly and .CDMA/Ev-DO (code division multiple access/evolution -data optimized). also the ever increasing competition in the market is competing on the software offerings of the product. GSM/GPRS/EDGE (global system for mobile communications/general packet radio services/enhanced data rates for global evolution). RIM has stock options in various countries and exchange rates directly affect the realized return on an investment portfolio with overseas holdings(RIM 2009) Social Social factors such as education. Since the sales of blackberry are made throughout the world the exchange rates will also have an impact on RIM as the fluctuation in exchange rates can suddenly make blackberry competitive . income levels have great impact on the demand patterns and also the cultural aspects have an consequence on seasonal sales as well for example in a country like USA sales of blackberry and other electronic equipments seems to be fairly high during the period of November to December. Technological advances over the past decade like 3G technology has had a he impact on RIM. as the customer base of the product demands fairly new and robust features in the products.
Commercial Investment . greatest smart phones.bloomberg.co m ( Accessed 20/09/2010) Buyers guide (2010).www. this could have an huge impact in its operations (BBC 2010). In December 2008. also RIM is facing various legal battles with companies like visto.news -technology. India etc are considering to ban the services. REFERENCES Adobe (2010).bbc.The companies services are fairly secure and it becomes hard to monitor.bbc. The impending law suits will also incur in expensive settlements. Vol.co.J (2009).com( Accessed 19/09/2010) BBC (2008). Thus these are the major macro factors which affect the industry and these in turn drive the micro factors which are explained in the following section. Jan/Feb2010. www. 64 Issue 9.co. so regulatory bodies of count ries like UAE.uk ( Accessed 19/09/2010) Bertolucci. MSTG filed a patent infringement lawsuit against the company (BBC 2008). all these legal issues will have a huge impact on the company s performance.uk ( Accessed 23/09/2010) BBC (2010). In March 2010. From Blackberry to Greenberry: RIM Goes Green at CeBIT. wastage developed during manufacturing may also affect the company(BBC 2008) Legal The major legal issues that are affecting the RIM are mentioned in the one of the previous section under political factors .the latest. energy usage.News. motorolaetc have had implications on the company. p86 -88 ( Accessed 19/09/2010) Bloomberg (2010):news.J (2010).www.adobe.com ( Accessed 19/09/2010) Farrar. Kiplinger s Personal Finance.uk ( Accessed .ecnomic times.www. the PACid Group filed a lawsuit against RIM and 30 other defendants alleging infringement of patents (BBC 2010).guardian.www. press release.co. thus environmental factors like product recycling. which filed two complaints in 2007 and 2008 against RIM alleging that infringement of its patent. Vol.any mishap could potentially tarnish the image of the company in the consumer market. 29 ( Accessed 19/09/2010) Economic times (2009):news:www. RIM is facing one from Minerva Industries. Business source premier (Accessed 23/09/2010) Guardian (2010):news-technology-blackberry.
com ( Accessed 19/09/2010) . www. (1985) Competitive advantage: creating and sustaining superior performance.com ( Accessed 19/09/2010) RIM (2008).Yano Research Institute. 8/16/2010.exploring corporate strategy 8th ( Accessed 19/09/2010 ) Hein. www.rim. New York: Free Press.20/09/2010) Gerry J.com ( Accessed 19/09/2010) RIM (2009). RIM Annual report 2008.R (2010). 27 Issue 2.BloombergBusinessweek . Vol. Kevan S. global top 100 brand.yanoresearch. www.com ( Accessed 19/09/2010) Porter. RIM Annual report 2009. ( Accessed 19/09/2010) Reed. Vol. by 2011:http://blog.rim. M.The BlackBerry will win.K (2009). RIM Annual report 2010.Phones Top List of Most-Trusted Brands.prentice hall Richard W( 2008).rim.interbrand. Our company.www.com ( Accessed 19/09/2010) Jroslovsky. 1/18/2010.S.Sales& Marketing Management. Issue 4192 ( Accessed 20/09/2010) Nielsen wire (2010). www. edition.com ( Accessed 19/09/2010) RIM (2010).B (2010).rim. p24-27 ( Accessed 19/09/2010) Research on the Smartphone Market (2009).www.com ( Accessed 19/09/2010) RIM (2010).Smartphones to Overtake Feature Phones in U.Network World. 161 Issue 6 ( Accessed 19/09/2010) Inter Brand (2010).nielsen.
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