PRIZE WINNING CASE STUDY ANALYSIS

CHERISHINGBLACKBERRY

Dr.Dinesh ShendeMr.Swapnil Jadhav

EXECUTIVE SUMMARYBLACKBERRY: A STORY OF PEOPLE WHO DREAMT AND LEARNT

Lazaridis, a dropped out of Waterloo university in 1984 along with a management consultant Balsillie gave a way to their dream of becoming a billionnaire by incorporating Research in Motion (RIM) in 1992.

RIM went public with listing on Toronto Stock exchange in 1997 and raised $ 115 Mn. from investors.

In 1999, introduced its first ever black berry brand E-Mail device

Currently the most popular brand in in US Smart phone market

Every 3rd smart phone bought in US is Blackberry.

Strong new entrants like Dell, Acer, Motorola , etc are trying to shake the position of existing players like RIM, Apple, Nokia, Panasonic Etc.

Market now is consumer centric asking for vivid applications day in & day out.

RIM faces the challenge of sustaining its leadership in smart phone Business.

ENVIRONMENTAL ANALYSIS

STRENGTH• pioneer in smart phones• 41 % market share (Q1 2009)•Strong customer base in US (3/5) and presence all over the world•Strong brand Equity •High skilled employees growing from 8000 to 12000

OPPORTUNITY• Entry into Price sensitive markets • Geographical expansion by mergers and acquisitions•To enter Tablet market where all other smart phone players are present

WEAKNESS• less Applications compare to Apple

•

THREATS• cut throat competition• rapid change in technology•Most dynamic consumer behavior•Extreme volatile market

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DRIVERS OF THE INDUSTRY

Technology New Applications Added features After sale service Market research for tracking constantly

changing needs. Long term relationship with suppliers

MOBILE HANDSET INDUSTRY 2009

87

13

share

basic Phonessmart Phones

MOBILE HANDSET INDUSTRY 2013

80

20

share

basic Phonessmart Phones

ANALYSIS OF SMART PHONES INDUSTRY

41%

20%

28%

11%

Market share

RIMAppleNokiaPanasonic

HAPPENINGS…

Nokia loosing ground Apple the biggest gainer Users preferring Google’s ‘Android’

operating system which received comparatively good reviews from techies

Nokia in tie up with Microsoft for operating systems

Threat of Entry

high• Extremely attractive market • Saturation in Basic handset and PC Industry •

Buyers

High• low switching cost • high demand for technological

improvement• Differentiation is very high

Suppliers

High bargaining power of suppliers:

• High demand for applications soft wares• High Demand of Micro Processor and

operating system

Rivalry

Very High• Rivalry is very high owing

to very attractive market • Present Competition is

quality –based and not price based

• Company’s are trying to cater to constant changing needs of users.

SubstitutesHigh• competition is stiff among substitutes . Like,Tablets, Palmtops, laptops, etc.• cost effectiveness and user friendly apps are

the keys for substitutes.

PORTER’S FIVE FORCES

Smart Phone Industry

FINANCIAL STRENGTH

3 years average EPS growth of 84% Revenue Growth of 77 % Market capitalisation increased 125%(from $ 96mn to $42 Bn) 56% market share in US of $12Bn market 41% market share in worldwide No. 1 fortune 500 list in 2009 as a fastest

growing co.

PROBLEM IDENTIFICATION

Reducing market share (49% in 2006 to 41% in 2009 Q1)

Comparatively less Applications leading to switching by customers

Apple Apps – appr. 65,000 RIM – appr. 2000

STRATEGIC ALTERNATIVES

Concentric diversification in Tablets ( Tabs )

Awarding software Entry into cost sensitive, less tech

savvy to create entry threat to apple Target different segments differently

STRATEGIC SUGGESTIONS

Short term

Medium Term

Long Term

• Increase application base by starting with new portal-Let developers post their applications-Let ideas Flow-- give adequate remuneration and recognition even to new developers

• Penetrate the markets which are more price sensitive and less tech savvy.-Can replicate Wal-Mart T – Mobile contact model worldwide

• Exclusive strategic alliance with “facebook” which is third largest population in the world.

• Mergers and acquisition to consolidate extreme competitive market.

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QUESTION & ANSWERS