Case 1: Blackberry

Benjamin Lieu Kari Morrison Jaskaran Sanghara Vivian Ou Calvin Sawyer Gloria Wong

JK and the Implementers From Set 1K Buddy

FMGT 1K MKTG 1102 Instructor: Jeff Collier 10/19/2009

This is important because research and development requires large amounts of investments. However. The Blackberry line boasted all-in-one capabilities. Partnered with voice and data transmissions. RIM has released numerous devices. RIM's employees grew from 1250 in 2001 to 7000 in 2009. Another is that existing RIM customers will continue to be loyal to the Blackberry brand regardless of new marketing strategies and products. it became the mobile device that could do it all. This led to an explosive demand. ASSUMPTIONS  A prevalent assumption we’ve made is that RIM will continue to have enough capital and resources necessary to pursue new technologies and innovations. none more popular than their Blackberry product line. They have a new and expanded target market. Blackberry's lines of products were equipped with voice and data transmission. Since then.   . RIM has the ability to develop new types of products. existing mobile device companies are still in direct competition and RIM will need to continue developing their technology to win dominance in the Smartphone market. This assumption is made so that market shares can only grow. In 1999. PROBLEM How can RIM develop Blackberry to overtake its competitors in terms of sales and market shares? KEY FINDINGS     The first Blackberry was introduced in 1998 as a wireless hand held computer. Research In Motion (RIM) introduced a two-way pager as their first product.INTRODUCTION In 1992.

According to RIM’s 2008 report. who currently owns the most global market share of Smartphones.SWOT ANALYSIS Strengths  High customer loyalty to the Blackberry line creates a long lasting business relationship. This would appeal to an audience with this specific need. It is largely dependent on the success of Blackberry’s as their major product.  The RIM brand is well established globally and this allows for a larger market for future product launches. These costs are reflected in the relatively high prices of Blackberry’s. Opportunities  New emergence of popular social networking sites.  Nokia. The term “crackberry” is used to describe users’ addiction to the device. They lack another product that can bring in consistent revenue. increasing Blackberry’s market3.  Blackberry has built a strong platform for future product innovation.5 Blackberry subscribers worldwide1. This could be a good function that Blackberry could invest in. such as Facebook and Twitter. 92% of RIM’s revenue comes from outside of Canada.  RIM is narrow in terms of its product lines. . They have a trusted name.  The emailing client is not completely stable. create a need for a device with easy access to the internet.  GPS technology is gaining increasing acceptance worldwide. There have been instances where it experiences outages that require time to fix and that could offset existing customers2. Site software could be developed for easier integration of mobile device and website. there are approximately 28. has recently been losing shares as new companies are emerging with similar or improved handsets. To date. Blackberry could potentially occupy more market share if they position themselves to be the replacement product. Weaknesses  The majority of Blackberries are manufactured in Canada where labour costs are much higher than developing countries.

The Nokia brand is extremely strong. In 2008. Its demographics were initially Gen X. AT&T currently holds exclusive rights to distribute the IPhone until 2010 and Verizon is already in talks to reach a contract with Apple once the exclusive rights expires 10. Nokia has launched 3 new Smartphones that targets the same market as Blackberry. following closely to Blackberry’s 20. Netbooks serve as lightweight laptops that serve the same functionality of Blackberry’s and also possess the ability to do more as an overall device. to distribute the IPhone4. This is in direct competition of market shares within China. It is present in 16 countries and employs over 39. approximately 15.  Different companies are constantly releasing new innovative phones with features that a Blackberry lacks.000 people which represent 31% of Nokia's workforce.  In the past 2 months. It boasts many 3rd party applications and video capabilities that are widely captivating. the 2nd largest carrier in China. and the Nokia X3 with emphasis on it doubling as a proficient musical device 7. . This would definitely be appealing to the eco-friendly market segments. They have released the Nokia X6 featuring 32GB of internal memory. but its popularity has grown to include Generation X and parts of Baby boomers. Nokia has also showcased the 7705 Twist. In terms of the global Smartphone sales in Q2 2009. In the USA.  There is an increasing popularity in touchscreen capabilities.  Netbooks are becoming inexpensive and often cheaper than certain Blackberrys6. the IPhone owns 13. The only company that has more shares of the global Smartphone sales than RIM is Nokia. Apple.9 billion and ranks fifth in most valuable global brand according to Interbrand/BusinessWeek Best Global Brand of 200911 whereas Blackberry is ranked 63rd. The IPhone is positioned as a more interactive device. A strong reason behind their strong sales is their research and development department. valued at over $34.8% of mobile phones have touchscreens and it is projected to increase to 39% in 20155.9%9. with a full QWERTY keypad8. COMPETITIVE ANALYSIS One of the most prominent competitors to RIM’s Blackberry in North America is Apple’s IPhone. Samsung is launching the Blue Earth Phone which is solar-powered. reached a non-exclusive deal with China Unicom. Only the Blackberry Storm from of the Blackberry line has touchscreen capabilities.7% of the market.Threats  One of Blackberries major competitor. For an example.

They are trying to reposition themselves as a product that everybody should have. it will need to overcome certain marketing obstacles. Its next step is to continually increase revenues and to do so. from the Blackberry Pearl to a more high-end Blackberry . Its relatively fast communication abilities appealed greatly to those in business situations where e-mails dominated. TARGET MARKET RIM has established itself as a world leader in mobile devices.In 2008. Its recent global expansion suggests that the Blackberry is making itself a commonplace to a different segmentation as well as existing customers. Nokia has successfully placed a product at every price point in the mobile device category to drive its revenues and sales. It is available in 135 different countries. This is not true of current day Blackberry. they released the Nokia E71 which they positioned directly against Blackberry and offering it at lower prices. over 350 mobile carriers. The traditional buyer profile of a Blackberry is business individuals of North America. There is now a Blackberry product available for different price points.

Storm. they will miss out on opportunities of reaching out to other target markets. If RIM already reaches a high percentage of their target market. Disadvantages   Competitors can take over new markets by developing products with new technology. where RIM targets several market segments. Advantages    Consumers will have increased brand recognition from being exposed to increased advertising in the media and on the internet. RIM will be able to reach more of their target market because an increased number of consumers will be able to afford it. Advantages    New target market which leads to greater revenues and higher market share. Potentially harm brand value by possibly introducing an inferior product. This new line should be developed as a more consumer friendly device. Intensified distribution will attract more targeted consumers. Blackberry can position themselves against competitors like Apple to seem more consumer friendly. Blackberry currently lacks effective visual advertisements and promotions. Risk in alienating existing customers and causing them to lose their perception of value in the phone. RIM already has an existing customer base to launch their new product lines. . Their current day marketing strategy reflects a differentiated segmentation strategy. ALTERNATIVE #1  Diversify the product line by producing a new handset line that is appealing to a new target market. Disadvantages    Heavy investment in R&D is required to launch new product lines. ALTERNATIVE #2  Strengthen market penetration by increasing investment in advertisements will attract new consumers to the target market.

it has the potential to become the only dominant phone in its era. It should have the same capabilities as the other Blackberry's except it should be more straight-forward so consumers have an easier time using the device. We will increase Blackberry's . Attract more of the market’s share with the new product/services. Disadvantages    The new product/service fails to attract consumers which lead to expenses and little or no revenue. however. Advantages    Promote new technology which will lead to overtaking competitor markets. Blackberry has the money to pay off the risks that could occur to them. Although the disadvantages are quite big. if this occurs. giving customers great value. Keep current customers from switching to other competition. Some of the risks that may occur are that they might alienate some of their existing customers and ruin the blackberry brand. Lose revenue due to sales/promotions if RIM already reached a high percentage of their target market. If blackberry strives to take out its leading competition. blackberry has the opportunity of winning those same customers back and they can easily pay off the amount of debt to the new product. SOLUTION Blackberry should opt for diversifying their products by producing a new handset that is similar to the Apple IPhone. which could potentially harm the loyalty of their customers. This will position it to directly compete for the IPhone’s target market and overtake a portion of Apple's sales. IMPLEMENTATION PLAN To create a user friendly phone similar to the Apple IPhone that is visually appealing and inviting. The price point should compete with other brands. with high risk. Flaws or problems may occur with the new product/service. ALTERNATIVE #3  Incorporate new technologies and services into current products and develop them for existing target markets. Very expensive to create.

Blackberry will then distribute the new product extensively to retailers. . Although this alternative is not as rewarding as the solution. but useful to any individual with communication needs. Used SWOT for situation analysis for Blackberry 2. it is a much safer option because there is less capital that can be lost in this option. With increased promotion. Used the Marketing Mix to develop product. Apply growth strategies to seek for ways to grow RIM's business. Blackberry is attempting to reposition their brand as a product not only for business people. In the first alternative. They can use advertisements and promotions to attract new consumers in their target market. place. 5. PLAN B Blackberry's backup option should be to strengthen the market penetration. we chose product development strategy to expand RIM's business. 3. Lastly. COURSE CONCEPTS 1.advertising and sales promotions to reach markets before the competitors. and promotion for the implementation of our solution. Differentiated Segmentation Strategy is Blackberry's current approach in marketing their product to several market segments. 4. In addition. price. market penetration strategy is applied in the second alternative. we used diversification strategy. e_phones_in_q2_2009.rim.html .com/publications/index.lucafiligheddu.REFERENCES/BIBLIOGRAPHY 1 http://www.rim.cnet.html 2 3 4 http://www.appleinsider.html 10 11 http://www.cfm? 9 http://www.pdf http://news.pdf 5 6 7 8 http://www.shtml http://www.

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