Blackberry - FOM

8/2/2019 Blackberry - FOM

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SHAHEED SUKHDEVCOLLEGE OF BUSINESS STUDIES

FUNDAMENTALS OF MANAGEMENT

COMPREHENSIVE RESEARCH ANALYSIS OFRESEARCH IN MOTION (RIM)

Submitted By:-

ARUSHI SHARMA | HISHAM A RIZVI

DIVIK GIRDHAR | DRISHTI RANA

BBS I-B


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The Next Big Thing!! !

Arushi Sharma (50240) | Divik Girdhar (502) | Drishti Rana (502) | Hisham Ahmed Rizvi(50269)

ACKNOWLEDGEMENT

This project would not have come to fruition without the help of several

individuals to whom we owe many thanks.

Our deepest thanks to our Lecturer, Mr Ameet Sao, without whose constant

guidance, support and time, this project, would have been a distant reality.

We express our thanks to our Principal, Ms Poonam Verma, for providing us

with the right kind of environment in the college, which helped us in the

realisation of this project.

Without the cooperation of the participants of our survey Smartphone

sectors reality, we would not have been able to give our project report theessential interactive touch that a subject like this requires.

We would also like to thank our families, friends and other well-

wishers, who supported us on all accounts, during the preparation of

this project.


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DECLARATION

The following students:-

Arushi Sharma 50240

Divik Girdhar 50256

Drishti Rana 50258

Hisham Ahmed Rizvi 50269

of the Bachelor of Business Studies course, Semester 1, studying in ShaheedSukhdev College of Business Studies, University of Delhi, hereby declare that the

Project titled Comprehensive Research Analysis of Research in Motion (RIM), forthe subject Fundamentals Of Management for the academic year 2011-12, hasbeen submitted for the first time and here only.

Date: 18/10/2011

(Mr. Ameet Sao) Students

Signatures


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Introduction

The company behind the BlackBerry

Research In Motion (RIM) is aglobal leader in wireless

innovation, which revolutionized

the mobile industry with the

introduction of the BlackBerry

solution in 1999.

It is a Canadian global

telecommunications company

headquartered in Waterloo,Ontario, that designs,

manufactures and markets

wireless solutions for the worldwide mobile communications market. RIM provides

platforms and solutions for access to information, including e-mail, voice, instant

messaging, short message service (SMS), Internet and intranet-based applications and

browsing. RIMs portfolio includes the BlackBerry wireless solution, the RIM Wireless

Handheld product line, software development tools and other software and hardware. It

was founded by Mike Lazaridis, who currently serves as its co-CEO along with Jim

Balsillie.

The BlackBerry product line includes the BlackBerry PlayBook tablet, the award-

winning BlackBerry smartphone, software for businesses and accessories. BlackBerry

products and services are used by millions of customers around the world on a daily

basis.

WHY WE CHOSE RIM?

The reason we chose to study this company and its particular smartphone product line is

the fact that the opportunities of expansion for this company are huge in the given Indian

market. Its operations are catching on rapidly in India, especially with the young,

finacially independent and tech-savvy generation. The core competency of this product,

the BlackBerry Messenger has not been duplicated by any other company with much

success; which gives it a massive edge over its competitors in terms of consumer

satisfaction.

RIM today faces extreme challenges and brilliant opportunities at the same time.

It is upto its marketing to decide the future for the company. Therefore, we thought it

would be ideal for us to trace the history, follow the growth, study and interpret the

strategy and forecast the future plan of action of this company, which is on the verge of

becoming the next big thing.
http://en.wikipedia.org/wiki/Waterloo,_Ontariohttp://en.wikipedia.org/wiki/Waterloo,_Ontariohttp://en.wikipedia.org/wiki/BlackBerryhttp://en.wikipedia.org/wiki/Mike_Lazaridishttp://en.wikipedia.org/wiki/Jim_Balsilliehttp://en.wikipedia.org/wiki/Jim_Balsilliehttp://en.wikipedia.org/wiki/Jim_Balsilliehttp://en.wikipedia.org/wiki/Jim_Balsilliehttp://en.wikipedia.org/wiki/Mike_Lazaridishttp://en.wikipedia.org/wiki/BlackBerryhttp://en.wikipedia.org/wiki/Waterloo,_Ontariohttp://en.wikipedia.org/wiki/Waterloo,_Ontario


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RIM- Tracing its History

1984Two engineering students - Mike

Lazaridis (University of Waterloo)and Douglas Fregin (University ofWindsor) - co-found Research inMotion. The company was set upas an electronics and computer

science consulting business basedin Waterloo.

1988The company becomes the first

wireless data technologydeveloper in North America.

The technology is mainly usedfor business communications,such as processing credit-card

sales.

1992The focus shifted to two-way wireless

communication when the research staff founda way to send messages back as well.

Jim Balsillie joins RIM, putting $250,000 of hisown money into the company.

1996RIM introduces its first wirelesshandheld, the Inter@ctive Pager.

1997RIM is listed on the Toronto Stock

Exchange as a publicly tradedcompany - and raises more than

$115 million from investors.

1998

RIM introduces its first BlackBerry, a wirelesshandheld computer. It offered a six-line display andallowed basic e-mail and two-way paging. RIM is

ranked as one of Canada's fastest-growingtechnology companies.

1999RIM is listed on the

NASDAQ exchange. Thecompany raises another

$250 million to develop itsBlackBerry technology.

November2000

RIM raises another$950 million through

a share offering.

2002RIM upgrades the BlackBerry to

include voice and datatransmission. E-mail

capabilities are improved sousers can access multiple e-mail

accounts.

2007RIM announces that its BlackBerrysubscriber list has passed the 10-

million mark.

October 2007Alcatel-Lucent announces an agreement to

distribute BlackBerry smartphones inChina. The news sends RIM shares up eight

per cent, making RIM the most valuablecompany in Canada, based on market

capitalization


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Past Acquisitions by RIM

Alt-N Technologies Ltd., a software developmentcompany and division of Research In

Motion (RIM) produces and sells the MDaemon email server for Windows. Alt-N

Technologies develops email messaging and security server applications for the medium

and small business communities.

Certicom Corp. is a cryptography company. The Certicom

intellectual property portfolio includes over 350 patents and

patents pending worldwide that cover key aspects of elliptic

curve cryptography (ECC): software optimizations, efficient

hardware implementations, methods to enhance the security,

and various cryptographic protocols.

DataViz, Inc. is a software company which created MacLinkPlus and RoadSync.

MacLinkPlus is a Macintosh program for converting files from one format to another.

RoadSync utilizes the Microsoft Exchange ActiveSync protocol to access Exchange

information which includes e-mail, calendar and contact information. On September 8,

2010, they sold their office suite Documents To Go and other assets to Research In Motion

for $50 million.

The Astonishing Tribe (TAT) is a company with headquarters in Malm, Sweden. It was

founded in February 2002 and

for the first year the company

worked with TV commercials,

animation, post production for

film, consultancy services

within image compression for

embedded systems, and

interactive art.TAT was

acquired by Research in Motion (RIM), on December 2, 2010. They are set to bring "their

talent to the BlackBerry PlayBook and smartphone platforms."

JayCut

In July 2011, RIM brought on JayCut, a Sweden-based company that is an online video

editor. JayCut will work with RIM to add video editing capabilities to the BlackBerry

platform.

Newbay

In October 2011, RIM brought on NewBay, an Irish-

based company that is an online video, pictures andtool for media networks editor
http://en.wikipedia.org/wiki/Software_developmenthttp://en.wikipedia.org/wiki/MDaemonhttp://en.wikipedia.org/wiki/Server_(computing)http://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Intellectual_property_portfoliohttp://en.wikipedia.org/wiki/Elliptic_curve_cryptographyhttp://en.wikipedia.org/wiki/Elliptic_curve_cryptographyhttp://en.wikipedia.org/wiki/Documents_To_Gohttp://en.wikipedia.org/wiki/Malm%C3%B6http://en.wikipedia.org/wiki/Research_in_Motionhttp://www.cantechletter.com/2010/12/is-rim-set-to-make-an-astonishing-comeback-with-the-astonishing-tribe/http://www.cantechletter.com/2010/12/is-rim-set-to-make-an-astonishing-comeback-with-the-astonishing-tribe/http://en.wikipedia.org/wiki/Research_in_Motionhttp://en.wikipedia.org/wiki/Malm%C3%B6http://en.wikipedia.org/wiki/Documents_To_Gohttp://en.wikipedia.org/wiki/Elliptic_curve_cryptographyhttp://en.wikipedia.org/wiki/Elliptic_curve_cryptographyhttp://en.wikipedia.org/wiki/Intellectual_property_portfoliohttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Server_(computing)http://en.wikipedia.org/wiki/MDaemonhttp://en.wikipedia.org/wiki/Software_development


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RIM - Growth over the years

Year Sales Operating Income Net Income

2002 294,000,000 58,000,000 28,000,000

2003 307,000,000 64,000,000 149,000,000

2004 595,000,000 78,000,000 52,000,000

2005 1,350,000,000 386,000,000 206,000,000

2006 2,066,000,000 617,000,000 375,000,000

2007 3,037,000,000 807,000,000 632,000,000

2008 6,009,000,000 1,731,000,000 1,294,000,0002009 11,065,000,000 2,722,000,000 1,893,000,000

2010 14,953,000,000 3,507,000,000 2,457,000,000

2011 19,907,000,000 4,639,000,000 3,444,000,000


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Products by RIM

The BlackBerry family includes best-in-class smartphones and software offerings, as well

as the BlackBerry PlayBook, the worlds first professional-grade tablet.

Selected product line

The BlackBerry Smartphones

RIMs most notable product is easily a mobile device dubbed the BlackBerry. This

revolutionary smartphone has implemented itself into the everyday lifestyle of millions of

individuals in over 140 countries.

BlackBerry has already proven itself as a product and a brand. With BB reaching

phenomenal highs in India, and now facing a possible downturn, we thought it would be

the perfect company to be analyzed from a global as well as Indian perspective.


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Study of the Smartphone sector

OBJECTIVE OF RESEARCH

Before we studied the Blackberrys marketing strategy, we decided to study the

smartphone market in general, in order to understand the consumer behavior.

With more than 20 million smartphones available in India, it is imperative for various

groups to understand the behavior of smartphone users.

A smartphone was defined as a mobile phone that offers more advanced computing

ability and connectivity than a contemporary basic featured phone.

For e.g.:Apple iPhone, Blackberry, Nokias high-end series.

SECTION I

PRIMARY RESEARCH

In order to fulfill the above objectives, a survey was conducted on a sample of 56

individuals, from the age group 15-55, comprising 21 males and 25 females.

The survey, although conducted on a small scale, shows some emerging trends and

demographics. The results were as follows:


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ANALYSIS OF THE RESULT

Scrutinising the results above, the following conclusions may be drawn:

Smartphones are still a niche market, though there is huge scope forexpansion.

Nokia and RIM (BlackBerry) are dominant players in the Indiansmartphone market, while Apple is a core competitor.

Indian smartphone users spend more time on the Internet than ontraditional voice calls and SMS of that time goes into gaming,

entertainment, and Internet.

Traditional voice calls and text messaging take a mere 8% of the time, andthe rest of the time is spent on social networking and instant messaging.

The common user considers BlackBerrys BBM service to be its corecompetence, and a differentiating factor from other smartphones

available in the market.

The smartphones manufacturing companies target market is slowlyshifting from professionals-only to a mix of professionals and general

users.

The given mix of responders agreed to the fact that if given a chance, and iftheir financial status permits, they would buy a BlackBerry device without

hesitations.

Though Nokia is a dominant player even now, its numbers over the yearsare fast declining, and competitors like RIM and Apple are catching up very

fast.

Nokia is still preferred by buyers with a purse of below 10,000 rupees. Butwhen the limit goes beyond that a drastic shift is seen towards smartphones

from Apple and BlackBerry devices.


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SECTION II

SECENDARY RESEARCH

On a global level, smartphone sales registered a 85% increase and accounted for 23.6% of

overall mobile sales in 2011. Smartphones registered 100.8 million unit sales in 2011.

Following statistics make the picture clearer:


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STUDY OF THE SELECTED

PRODUCT LINE

IntroductionResearch In Motion (RIM) is a global leader in wireless innovation, which revolutionized

the mobile industry with the introduction of the BlackBerry solution in 1999.

Itis a Canadian global telecommunications company headquartered in Waterloo, Ontario,

that designs, manufactures and markets wireless solutions for the worldwide mobile

communications market. RIM provides platforms and solutions for access to information,

including e-mail, voice, instant messaging, short message service (SMS), Internet and

intranet-based applications and browsing. RIMs portfolio includes the BlackBerry

wireless solution, the RIM Wireless Handheld product line, software development toolsand other software and hardware. It was founded by Mike Lazaridis, who currently

serves as its co-CEO along with Jim Balsillie.

The BlackBerry product line includes the BlackBerry PlayBook tablet, the award -

winning BlackBerry smartphone, software for businesses and accessories. BlackBerry

products and services are used by millions of customers around the world on a daily

basis.

Marketing Mix: The 4 Ps of Blackberry.

- THE PRODUCT

BlackBerry is a line of wireless handheld devices developed by the Canadiancompany, Research In Motion (RIM).

1999 Introduced as a two way pager that was introduced in as a two-way pager. 2002 - The more commonly known Smart Phone BlackBerry was released. The Smart Phone supports the following features:

o Push e-mailo Mobile telephoneo Instant messaging features: BlackBerry Messenger (BBM)o Text messagingo Internet faxingo Web browsingo Multi-touch interfaceo Other wireless information services

BlackBerry first made headway in the marketplace by concentrating on e-mail. BlackBerrys can message each other using the PIN directly or by using

the Blackberry Messenger application.
http://en.wikipedia.org/wiki/Waterloo,_Ontariohttp://en.wikipedia.org/wiki/BlackBerryhttp://en.wikipedia.org/wiki/Mike_Lazaridishttp://en.wikipedia.org/wiki/Jim_Balsilliehttp://en.wikipedia.org/wiki/File:Blackberry_Logo.svghttp://en.wikipedia.org/wiki/Jim_Balsilliehttp://en.wikipedia.org/wiki/Mike_Lazaridishttp://en.wikipedia.org/wiki/BlackBerryhttp://en.wikipedia.org/wiki/Waterloo,_Ontario


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PIN is an eight character hexadecimal identification number assigned to eachBlackBerry device. PINs cannot be changed and are locked to each handset device.

Blackberry models in India include:o BlackBerry 8300 Series (Curve)o BlackBerry Pearlo BlackBerry Boldo BlackBerry Torcho BlackBerry Bold 3G, etc.

BlackBerry holds the world's second highest market share in the smart phone platform.

The consumer BlackBerry Internet Service is available in 91 countries worldwide on over

500 mobile service operators using various mobile technologies.

As of September 2011, there were seventy million BlackBerry users.

BlackBerry Messenger

BlackBerry devices use the proprietary BlackBerry Messenger, also known as BBM,

software for sending and receiving instant messages via BlackBerry PIN. Blackberry

Messenger is one of the fastest messengers on a smartphone.

Third-party software

Third-party software available for use on BlackBerry devices includes full-featured

database management systems, which can be used to support customer relationship

management clients and other applications that must manage large volumes of

potentially complex data.

BlackBerry devices will be able to run Android applications when RIM brings QNX andthe Android App Player to BlackBerry.
http://en.wikipedia.org/wiki/BlackBerry_Messengerhttp://en.wikipedia.org/wiki/BlackBerry#BlackBerry_PIN#BlackBerry_PINhttp://en.wikipedia.org/wiki/Database_management_systemshttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Database_management_systemshttp://en.wikipedia.org/wiki/BlackBerry#BlackBerry_PIN#BlackBerry_PINhttp://en.wikipedia.org/wiki/BlackBerry_Messenger


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PRICE

As on October 2011, the prices of various BlackBerry phones available in India were as

follows,

BlackBerry 8320 Rs.24,000 BlackBerry Bold 9000 Rs.33,600 BlackBerry Pearl 8110 Rs.24,199 BlackBerry 8310 Rs.24,029 BlackBerry Pearl 8120 Rs.24,229 BlackBerry 8820 Rs.30,800 BlackBerry Curve 8300 Rs.23,367 BlackBerry 8800 Rs.28,800 BlackBerry 7130g Rs.14,400 BlackBerry Pearl 8100 Rs.21,100 BlackBerry 7100g Rs.10,500 BlackBerry 8700g Rs.14,400

BlackBerry has strategically placed smartphones in all price ranges, as well as with

different features to suit different needs. They have given people the option to choose

from a variety of models according to their need and budget, while maintaining the

availability of signature features like BlackBerry Messenger and Push-Mail service in all

the brands so that the essence of having a BlackBerry can be experienced by all the usersacross different budget ranges.

A variety of flexible tariff plans to choose from, thus making it easy for young

fans to turn BlackBerry loyalists. We have built up a portfolio at different price

points to target different segments of consumers,

Krishnadeep Baruah,Director (Marketing), RIM India.


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PLACE

The global perspective

During 2010, RIM sold 47.5 million mobile phones, an increase of 38 percent year-on-

year. The performance in Q4 2010 was particularly strong in Canada, Indonesia, United

Kingdom, and the Netherlands

Although developed countries are a large market, research proves that developing

countries such as India and China will be an even larger market.


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The Indian Perspective

BlackBerry plans to sell more devices in India, where smartphone shipments are forecast

to grow almost 70% a year until 2015, to help mitigate their market-share losses in the

US and Europe.

Data collected by Cyber Media Research indicate that RIM had 13% share of Indiassmartphone market in 2010, up from 8% in 2009.

Nokia leads the smartphone shipments in India followed by Samsung. As per datareleased by IDC, Nokia holds a strong 45.8% market share in smartphoneshipments, followed by Samsungs 21%. Research in Motion, the maker of

Blackberry phones has a 15% market share. The top 3 manufacturers together, have a81.9% market share, leaving a paltry 18% to the likes of Apple, LG, Motorola and SonyEricsson.

A total of 2.4 million smartphones are shipped to India in Q2 2011 (April, May andJune). This is 5.6% of the overall mobile phone shipments. 2.4 million smartphoneshipments in Q2 2011 is a marginal increase of 0.4% from the previous quarter.

When we analysed the Indian market, we found that Blackberry sales are restricted to the

high-end urban market. This may be due to varied demands of a differentiated society.

But in the college space as well as the corporate sector, BlackBerry has become a rage,

with students and professionals alike preferring Blackberry over most other brands.

The reason for the paltry numbers for brands like Apple is the heavy pricing which

renders most customers unable to buy them. Various other brands like Motorola and

Samsung still suffer from lack of customer confidence and loyalty, which Nokia strongly

leverages and enjoys.

Excellent after sales services have been a strong point for Nokia, which BlackBerry is fast

catching up with.
http://www.idc.com/getdoc.jsp?containerId=prIN23051811http://www.idc.com/getdoc.jsp?containerId=prIN23051811


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The Indian market can be broadly divided into two sectors; the urban and rural markets.

Both these markets differ drastically in terms of needs, demands, financial orientation

and necessity of the consumers.

THE DIFFERENTIATED INDIAN MARKET

BlackBerrys distribution in 2008 was limited to 15 towns and cities. It has now expanded

to 80 towns and cities in India and a large part of that is emerging towns and cities.

BlackBerry is creating shop-in-shop Blackberry Experience Zones to create the

experience of the product, even in small towns.

Although rural areas may seem an unfit market for smartphones, BlackBerry wishes to

penetrate into smaller cities and towns in India, due to the following factors:

It is ideal for the lower-range smartphones to be introduced. Limited availability of fixed-line services has made mobile telephony the only

source of telecoms service.

It is the next big thing, with a 770 million population potential. As and when people will acquire more wealth and financial statuses will increase,

people will try to move onto better phones, and with BlackBerry phones available

at different ranges, the potential market that can open up is huge.

Rapid urbanisation is ensuring cultivation of a modern culture in even smalltowns, and with Blackberry fast becoming part of this city culture, its replication intowns cannot be ignored for long.

Business uses Latest applications for the business

user

Advanced features and applications

Lifestyle

Status symbol

Urban Users

AffordabilityConnectivity

Battery Life

Network expansion

Low tariffs

Lucrative Offers

Rural Users


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PROMOTION

RIM has done an excellent job of establishing the BlackBerry brand. Whether you live in

North America, Asia, or Timbuktu, the majority of society is aware of what a BlackBerry

is. RIM has relied on their solid reputation in place of effective promotion, such as catchy

slogans, eye-catching magazine ads, and famous product placement.

The Marketing Strategy of BlackBerry

TARGET MARKETS

BlackBerry has divided its target market into two basic segments:

Enterprise customers

BlackBerry was a "company decision".

Non-Enterprise customers

BlackBerry was a personal decision.

Enterprise customers

High end users Aged 25+ years Mainly mid to senior level

management professionals

Cosmopolitan Professionals who useit for office purpose

Both males and females Tier I cities

BlackBerry has already established

leadership position in this segment.

Non-Enterprise customers

Aged 15-25 years Mainly students Individuals who use it for personal

or entertainment purposes

Youth which will have financialpower tomorrow

Both males and females Tier I cities

Today, it has a range of models targeted

at every possible consumer segment

senior management professionals,

young executives, women, and even

those who have barely crossed their

teens.

Youth Marketing StrategyBlackBerry has been quick to understand the needs of its young customers.

In the last 8-10 months, this segment has grown phenomenally. This segment comprises

the youth who do not have the financial power today but have a big influence on what

device they want to buy and on those who make purchases for them such as their

parents. This segment, which has a huge need to be connected, is growing for

smartphones and specifically for BlackBerry.

So, while it has a range of pink, pearl and crimson models to entice women, theres also a

variety of flexible tariff plans to choose from, thus making it easy for young fans to turnBlackBerry loyalists.


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Repositioning of The Product through advertising

Were the BlackBerry Boys

The BlackBerry Boys

advertisement created by Ogilvyand Mather in 2010 said it allthis

smartphone brand wasnt meant

only for stuffy corporate suitsthe

young and the savvy in India were

naturally inclined to this high-end

gizmo.

The new campaign called Not just

the office guys talks about how the

mobile device is now a favourite

with youngsters who use it for

BlackBerry messenger and social

networking. The campaign also

seeks to break Blackberrys only-for-the-corporate image and targets the youth who is

known for heavy data usage. The campaign is all about telling people that the BlackBerry

service is no more exclusive to a certain segment.

Love what you do

This ad showcases everyfunction of the Blackberryhandset, inserting the taglinelove what you do on each one.

BlackBerry Messenger

Music

Want to share music throughyour mobile? The BlackBerryMessenger can do that too. Thisvideo gives us an intro, askingAre you missing something?

BlackBerry Messenger in a Dormitory with AirtelThis creative ad shows how students in the dormitory are communicating through theirBlackBerry handsets even when the lights are out and forced to sleep.


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Print ads like the following were also used extensively by BlackBerry.

CONCLUSION

All the above ads seem to

have a common theme.

Black Berry has set out to

target a younger, more fun-focused consumer.

It can be concluded that the

BlackBerry brand is

repositioning itself, as its

primary audience is no

longer corporates.


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Use of digital media

BlackBerry has been working hard over the last one year on the BlackBerry India

website. The Blackberry India fan page on Facebook has 900,000 fans. Its India Twitter

page allows people to get updates on the brand and stay connected with the latest news.

Access to the India website from the mobile device has been extremely successful in the

last five to six months. Also, we keep doing campaigns on the digital medium.

BlackBerrys marketing strategy for the near term

BlackBerry will continue to address the high-end consumer segment and the youth. They

plan to launch some new features and products catering to a more diverse group of

individuals.

Beyond that, BlackBerry is also working on enhancing the product experience for the

consumer. Its idea is that people should be able to walk into the nearest store and

experience the product.

For example, BlackBerry Playbook was launched in eight cities with a core umbrella

campaign which included TV, radio, print, digital, outdoor (airports). demo zones were

created at each BB outlet where a trained person who could give the right experience of

the product was available to familiarize consumers to the new technology. Similar

strategies will be adopted for smartphones. product experience is the key for every brandtoday. That is what the Blackberry brand stands for.


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CHALLENGES

Competition

The primary competitors of the BlackBerry are smartphones running Android, iOS,

webOS, and Windows Phone 7.

BlackBerry has contended with being pigeonholed as a strictly business and professional

product since its early roots. This stereotype has helped to define BlackBerry as a stable,

reliable and practical tool. On the other hand, it has limited its own target market by

keeping the static business image.

Other organizations are breaking the mould by releasing entertainment-based

technology. For example, the iPhone which is produced by Apple, could be considered

BlackBerrys stiffest competition yet. Because of the demand for a less serious, less

business orientated mobile device, RIMs challenge is to harmonize the product it already

has with the upcoming demands of a client concerned with leisure. Although it has

maintained its sales and reputation, rival competitors are beginning to improve their own

brands and are making advances, posing a serious threat.

Competitor Analysis

Nokia was the 1stforeign player to enter the Indian market in 1995.

It gained its foothold by offerings basic mobile phones inaffordable price ranges. Recently, Nokia launched its latest range of touchscreen and hi-end phones, which are

getting quite popular with Smartphones lovers of India. Brand Focus:

o Gaming optionso Multimediao GPRSo Faster Internet options

2001 Sony Ericsson enters the Indian marketIntroduced affordable Smartphones in the market such as hi-techmultimedia features, camera phones, design phones, music phones, andweb and email phones.

Motorola Smartphones are mainly focussed on data communicationand mobile entertainment features with its new range that includesthe Aura, A1600 and WX series.
http://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/IOS_(Apple)http://en.wikipedia.org/wiki/WebOShttp://en.wikipedia.org/wiki/Windows_Phone_7http://en.wikipedia.org/wiki/Windows_Phone_7http://en.wikipedia.org/wiki/WebOShttp://en.wikipedia.org/wiki/IOS_(Apple)http://en.wikipedia.org/wiki/Android_(operating_system)


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Why BlackBerry Won Against APPLE

Sales for the worlds biggest company by market value, APPLE, are hindered by RIM.

Apple shipped 62,043 iPhones to India in the quarter ending June 30, or fewer than to

Norway, Belgium or Israel, according to estimates by Framingham, Massachusetts-based

researcher IDC.

The reasons for this are as follows:

1) Apple products arent as accessible in India because consumers cant buy iPhones,

iPads and iTunes songs from company stores or its website. Apple sells through licensed

resellers, including a Reliance Industries subsidiary and Tata Group s Croma.

2) The poor sales figures for Apple smartphones has been attributed to Indian wireless

carriers. Third-generation networks have begun to be established across the country, but

as of yet are unable to provide fast enough services necessary for many features of the

iPhone. The iPhone functions well in European countries and in the US where adequate

Wi-Fi speed is available. For countries a step behind in terms of internet speed, devices

such as the BlackBerry work well.

3) Blackberry users have defended its utility over the iPhone, supporting its physical

keyboard, secure e-mail, and applications such as BlackBerry Messenger. The BlackBerry

Messenger application is particularly popular, as one can message those who also have a

BlackBerry device for free, without internet.

4) Moreover, Blackberry has a price range which appeals to wider range of customers, asopposed to Apple smartphones, which are only a high-end range.
http://en.wikipedia.org/wiki/BlackBerry_Messengerhttp://en.wikipedia.org/wiki/BlackBerry_Messenger


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SUGGESTIONS

Problem

After reviewing and acknowledging all aspects of our case, it is understood that problem

is to develop a balance between business use and recreational use of RIM products for

our consumer target market, in order to gain and retain a larger market share.

Causes

Throughout the past RIM has almost solely relied on its carriers to promote theirproducts. No carrier is owned by RIM, and no carrier only offers BlackBerry as its

product. Each and every carrier sells multiple brands and phones, which in turn

leaves BlackBerry on the same platform as everyone else.

Carriers are concerned with their own profit. If they have the opportunity to makemore revenue from brands other than RIM (BlackBerry), than those phones will

receive preference and be promoted more heavily. RIM does not exercise control

over its carriers.

Without ownership of their own stores, RIM loses the opportunity to interact withclientele on a more personal level.

Should learn from:Apple: It has had major success with store branches. BlackBerry should also take note of

its successful competitor and invest in promoting itself through other avenues, such as

commercials, viral marketing, magazines and product placement.

Solutions

Diversification of the productSince the establishment of RIM, BlackBerry devices have been targeted solely toward

corporate and business persons.

BlackBerry products predominantly possess work and business related applications and

features. Therefore, BlackBerry is mainly thought of as a corporate and work-related

purchase, which reduces potential for revenues and successes. In contrast, iPhone has

had mass success due mainly to recreational and entertainment based features.

RIM needs to tap into these niches and include them alongside their business orientated

BlackBerry devices. By doing this, RIM and BlackBerry could become a mobile device

powerhouse. Developing a best of both worlds attitude would result in progressive and

positive advancement. Though RIM has made some changes in direction by releasingsome trendy, more fun-related features and applications, there is still much room to

grow.


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In order to compete in a new target market, BlackBerry must make a consolidated effort

in producing a device that holds major appeal to a new type of consumer outside of their

Wall-Street loyalists.

Product DepthPeople all over the world are becoming increasingly environmentally responsible. Being

environmentally friendly is a trend in new markets; therefore it only makes sense for

BlackBerry to capitalize on the Green opportunity.

Studies report that 55% of consumers base their purchases on how environmentally

friendly a product is. RIM has the opportunity to reduce their carbon footprint by

manufacturing a line of eco-friendly BlackBerrys, which would not only target this

market share, but pertain to social responsibility.

The Green BlackBerry would carry out the same tasks as the original model. Phones

would be made with bio-plastic materials that are biodegradable and recyclable.

Packaging for such a phone would also be made with recyclable materials. Furthermore,

we would also insist upon the use of a more energy efficient adaptor.

ln general, an eco-friendly phone is positive, however there are disadvantages. Eco-

friendly target market consumers may not hold much value for devices such as

BlackBerry. An environmental launch would be a risk. False perceptions and

misunderstandings of what being eco-friendly actually consists of could lead to an

unsuccessful product.

Market DevelopmentBlackBerry is already a proven device and it is primarily known as a business tool. RIM

can continue to produce their product, but build upon their empire with market

development.

Opening up to a new target market other than the business professionals of the world,

BlackBerry can reach a new audience. This will give RIM the chance to attract therecreational users that have written off BlackBerry as nothing more than a business tool.

Market development will allow BlackBerry to stay true to its product while building

upon itself. RIM must be focused and distinct with their marketing. Changing an

individuals perception of a product can prove to be difficult, with the proper promotions

and unique advertising, it can be done.

Aggressive PromotionWithout any adjustments to the BlackBerry products, RIM must exert more effort into itspromotion. RIM must aim to communicate a more equal and balanced manner with

regards to business mentality vs. recreational lifestyle to their target market.


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RECOMMENDED PLAN OF ACTION

Taking all alternatives into account, we have made the decision to implement a

more concentrated and aggressive marketing development strategy.

RIM BlackBerrys plan of action will target their already existing client i .e. seniorexecutives and young professionals, alongside a younger and more recreational

based consumer, known as Generation Y. By aiming their sights on up and coming

consumers, RIM can build upon relationships with their target market from a

young age and develop their sustainability as a company simultaneously.

RIM will actualize a new promotional campaign to address these potential

consumers and attract them with the use of advertisements through television,

viral marketing, radio, billboards and magazines. Though these sources are

already used to promote the BlackBerry, RIM can revamp how they advertise.

RIM must generate commercials that are brighter, more energetic, and most

importantly, more memorable, thus appealing to a fresher audience. Another

option for BlackBerry is product placement on television shows or films that

appeal to the target audience. RIM will adopt a new way of thinking, and by

cultivating an improved marketing development strategy, RIM can evolve as a

brand and a corporation.


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BIBLIOGRAPHY

www.rim.com www.rim.com/india / www.businessweek.com/ap/financialnews/D9Q6FTMO0.htm http://www.digitaltrends.com/mobile/blackberry-more-popular-

than-iphone-in-india/

http://www.bloomberg.com/news/2010-09-16/rim-sales-profit-beat-estimates-on-demand-for-smartphones-shares-advance.html

http://business2press.com/2010/06/28/sec-filing-shows-rim-sales-down-in-key-international-markets/

http://technology.ezinemark.com/success-story-of-blackberry-mobiles-in-india-7d2da5ce922b.html

http://www.cbc.ca/news/business/story/2010/08/11/rim-blackberry-india.html

www.znews24.com/blackberry-faces-a-huge-sales-drop-in-india.htm http://profit.ndtv.com/news/show/blackberry-sales-drive-up-rim-

net-by-31-146304

www.sify.com Finance www.rim.com/products/index.shtml Hindustan Times Mail Today