blackberry-case-analysis23

Case Western Reserve University

Blackberry case analysis

By Ling,Stephanie,Yana,Mat,Mahran

10/17/2009

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Blackberry case analysis by Ling, stephanie, Yana, Mat, Mahran

Table of ContentsCase background.........................................................................................................................................3

RIM Company history..............................................................................................................................3

RIM is the fastest growing company in the world...............................................................................3

Critical problem the RIM faces................................................................................................................3

company strategy........................................................................................................................................4

define the business mission....................................................................................................................4

Competition analysis...............................................................................................................................5

Swot analyse ……………………………………………………………………………………………………………………………………….6

STP(segmentation, targeting, positioning) analysis………………………………………………………………………………7

Segmentation......................................................................................................................................7

Targeting..............................................................................................................................................8

Positioning...........................................................................................................................................8

Growth strategy..........................................................................................................................................8

Market development...............................................................................................................................9

Strategic business units.........................................................................................................................10

Market mix................................................................................................................................................11

Product strategy....................................................................................................................................11

Price.......................................................................................................................................................13

Place......................................................................................................................................................14

promotion..............................................................................................................................................15

brand value........................................................................................................................................13

brand strategy...................................................................................................................................13

Recommendation......................................................................................................................................17

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Case background

RIM Company history

RIM is the fastest growing company in the world

Year RIM Events Blackberry features Consumer1984 began the small

entrepreneurial business

1992 The first product two-page pager

1998 first blackberry : wireless hand six lines of text display, basic e-mail

1997 toronto stock exchange

1999 balckberry 850 explosive demand , voice and date

transmission Internet limited

Business professionals

2001 1250 employees2009 7000 employees

Blackberry Curve8330

Blackberry Pearl 8120

organizer, contact manager, a computer, an internet device, a telephone

Over 14 million consumers

Over 135 countries

Critical problem the RIM facesRIM has experienced high development in the mobile communication and entertainment market. To keep its leadership in the market, they have to think about following questions:

What kind of product strategies in the future? How to keep the unique compared competitive advantages?

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company strategy

define the business mission

Research In Motion’s company mission is to provide mobile wireless solution for their costumers through hardware software and services. Most of their products are aimed at more business minded individuals that need to get time sensitive information such as emails, phone call and text messages. Recently Research In Motion has also started to develop products for other people with their more everyday phone the black berry storm, which is in direct competition with the popular Iphone by MAC.

Competition analysis

In the multiple wireless communication device market, iphone 3G is the powerful competitor to the Blackberry. Let’s compare the two products as follows:

Blackberry Iphone 3GPosition Business professionals IndividualsFeature Powerful function for processing

the informationFashionable design

PriceMarket shareSales volumn $19 billion in 2007

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Here’s the spec rundown, with the advantages in bold

Spec iPhone BlackBerry BoldSize 4.5″ x 2.4″ x .46″ 4.48″ x 2.6″ x .55″Weight 4.8oz 4.69oz Memory(Ignoring OS considerations)

up to 16gig storage 1gig storage + Expansion

Battery Life 8 Hour talk time 5 hour talk time Network Supprt Quad-band EDGE Quad-band HSDPA/EDGE

Other Comm WiFi, Bluetooth, USB via Dock Connector WiFi, Bluetooth, GPS, USB via mini-USB

Display 480×320 touchscreen 480×320 non-touchscreen

Media Support

Auido: AAC, Protected AAC, MP3, MP3 VBR, Audible (formats 1, 2, and 3), Apple Lossless, AIFF, and WAV; Video: .m4v, .mp4, and .mov file formats

Audio: .3gp, MP3, WMA9 (.wma/.asf), WMA9 Pro/WMA 10, MIDI, AMR-NB, Professional AAC/AAC+/eAAC+; Video: DivX 4, Div X 5 & 6 are partially supported, XviD is partially supported, H.263, H.264 and WMV3, syncs with iTunes but likely not as well as iPhone

Camera 2 megapixel 2 megapixel with flash UI Touchscreen, Apple MoJo non-touchscreen, trackball + BB Menu confusionWeb Mobile Safari Don’t look directly at the screen

Email iPhone Mail client needs lots of taps BlackBerry == email power

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SWOT analyse

Environment EvaluationPositive Negative

Internal Strengths leading brand in the multiple

wireless communication market more than 10 years experiences in

the market own a lot of loyal business

customers excellent technology research and

integrated capabilities the ability of knowing the needs of

customers excellent marketing Products that attract the attention

of both consumers and business professionals

One of the only trusted phones for the business-class mobile e-mail

RIM core technology centers on radio technology and mobile communication

Growing Smartphone Share Worldwide – market Leader in North America

Healthy Financial performance

Weakness Blackberry has become the symbols

of business professionals, so it is not easy for company to reach the individuals’ market

Not good at the appearance design Weak position in Consumer Mobile

Device Market Weak Touch user Interface Running out of space to expand R&D

department Limited amount of physical at RIM’s

Waterloo campus Limited Consumer Application,

Immature Application Store High prices The Internet service should be faster

to login to email system

External Opportunities Great product with advance

technology Lots of features in BlackBerry Brand Loyalty They were first in the market

Threat Powerful competence Apple’s I-

phone are increasing its market share

Competition and Commoditization in Wireless E-Mail

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Growth in Consumer and Small and Midsize Device market

Success of Integrated, End-to-End Mobile Solution with Consumers

Availability of Multy-Tiered Pricing and More Affordable data Plane

R&D talent is getting increasingly sparse

Competition for employees is very competitive in the global software development industry

Global economic recession will cause the decrease of demand for expensive Blackberry

The fast change of technology may lead to the emerge of other new products (like the I-pod replace the walkman)

Product Portfolio

STP(segmentation, targeting, positioning) analysis

SegmentationAccording to the mobile communication market’s features, we combined the occupation, behaviour and income three factors as the multiple segments to describe the consumers of mobile communication market.

Segment method Segments Demand

Occupation Business professionals Quickly access sales, product and organizational data in any database

Access Key Performance Indicators (KPI) while on the go

Remove the requirement to be near a desktop to view critical data

Support decision-making with automatic alerts and automatically refreshed data

Provide at-a-glance performance monitoring for accelerated action and decision making

Be willing to pay more for the newest products that provide the function they need

VALS:behaviour segmentation

Innovators : Successful, take charge

people High self-esteem Change leaders Very active consumers Purchase reflect

cultivated taste for finer things

Pursue the most fashionable products with advanced technology

Like the fashionable design Like to purchase the products of leading

brand Be willing to pay more for the newest

products

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Income Above $70,000/year Purchase the expensive personal products Pursue the fashion products

Targeting

Blackberry provide the solution to target market combined with the business professional ,innovators and high income segments .

Positioning

Blackberry cell phones are a device that have taken convenience to another level for business travelers. These phones allow easy access to email accounts, and all the functionality of a cell phone. The Blackberry has become more than a business tool though. As the price has dropped to make them more affordable, individuals are purchasing Blackberry phones for their own personal use as well.

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Blackberry targeting market


The Blackberry makes it easy to communicate with a large group of people at once. By checking your email you can access mailing lists from your office to send a message to everyone; this is much more reliable than texting, as each individual might not have texting on their cell phones

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Growth strategy

Market development global strategy: RIM have established the global markets to sell their products.

92% percent of its revenues come from outside Canada. New segment: RIM are increasing the new segment ,such as individuals markets, to increase the

market share.

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Business professional s

high low

Indi

vidu

als

high

low

Blackberry

iphonePotential


Strategic business units

RIM established the strategic business units. Each units perform independently.

Advantages about strategic business units:o Each unit is a profit centre,clearly responsibility and dutieso Each units perform the different tasks,and they can support each other

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Figure 1-1


Market mix

marketing decisions generally fall into the following four controllable categories:

Product Price Place (distribution) Promotion

Product strategy

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Product diversitification : through establishing the product diversitification to meet the different market needs.

item Different features Customers needsBlackberry storm Large, 3.25" touch screen

displays over 65,000 colors 3.2 MP camera with video recording Easy switching between applications

Powerful function

Blackberry curve A sleek new twist on a classic style. keep your finger on the pulse of what’s important to you with the BlackBerry® Curve™ 8900 smartphone

style

Blackberry peral Enjoy fun and functionality in a small, stylish device. offer everything you're looking for from a mobile phone, without sacrificing the full BlackBerry.

Small,stylish

Blackberry bold embodies elegant design — without sacrificing the features or functionality you expect

Elegant design

Blackberry tour World phone capabilities on 3G networksEnhanced multimedia features

Use everywhere in world

Blackberry 8800 series the stylish way to get things done Catch up with family using email, phone or instant messaging, before utilizing GPS to help you get to that meeting. ensures that you stay connected to work, life and everything in between.

Stlish,

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Product innovationo RIM spend a lot of resource to innovate the technology o

Extensive product lines blackberry smart phones series(7100,7200,8700,8800)blackberry Curve and Pearl seriesBlackberry Storm: consumer Develop the new product to increase the produceline depth Product cycle

PricePrices are in Canadian dollors and not exact.

Blackberry Storm 2TM 9550…………………………………………………………………………………….750.00$ Blackberry Curve TM 8520……………………………………………………………………………………….500.00$ Blackberry Tour TM 9630…………………………………………………………………………………………750.00$ Blackberry Bold TM9000………………………………………………………………………………………….800.00$ Blackberry Curve TM 8900……………………………………………………………………………………….600.00$ Blackberry Pearl Flip Series………………………………………………………………………………………400.00$ Blackberry 8800 Series……………………………………………………………………………………………..450.00$

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Place

Over 21 million people use BlackBerry® smartphones on over 375 wireless networks in 140 countries around the world.

When making your decision on the right wireless solution for your business, it’s important to have the latest information from independent analysts and leading organizations.

Wireless Companies that carry blackberry products:

North America:

AT&T ROGERS WIRELESS CANADA FIDO BELL MOBILITY KOODOO CELLCOM ALASKA COMMUNICATION SERVICE GCI WIRELESS KTC TELUS CANADA NETLOS

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Europe:

CENTERTEL CLICK GSM CTM COSMOTE DOLPHIN TELECOMUNICATIONS EMT ERA GSM EUROTEL PRAGUE GEOCELL JERESY TELECOM

Asia:

MOBILE ONE

promotion

brand value

brand facilitate purchasing brand protect competition brands reduce the marketing cost brands are assets brands impact market values

brand strategymanufacturer/world brandbrand name strategybrand equity

brand awareness perceived value brand loyalty

blackberry inspires extreme loyalty and interest among consumers worldwide

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It is not enough for a business to have good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. In marketing, this is commonly known as "promotion"

Blackberry has two kinds of promotion : Special Deals for consumers

1. Consumers can get these promotions from their wireless service providers. These promotions are as follow:

BlackBerry® Bold™ Smartphone FREE on the $69 BlackBerry Cap over a 24 month contract ,$590 worth of calls included. Unlimited BlackBerry Email and Mobile Internet (to use with almost any personal or business email account!) Unlimited Facebook, Google Maps and I.M. in 3’s Broadband Zone

Special deals for business’s2. Business can also get these promotions from their wireless service provider or the

blackberry website. :

BlackBerry® Bold™ Smartphone FREE on the $79 BlackBerry Cap over a 24 month contract .FREE BlackBerry® server software, Customer Access Licences and installation when you sign up 5 new BlackBerry® smartphones on BlackBerry® Professional Software for 24 months ,$590 worth of calls included.Unlimited BlackBerry Email and Mobile Internet (to use with almost any personal or business email account!)Unlimited Facebook, Google Maps and I.M. in 3’s Broadband Zone!

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Recommendation

RIM is one of the most successful companies in Canada. It has created and developed great smart

phone products. As its product which is Blackberry has won award from consumers. In spite of

competitive market, it is one of the fastest growing companies in the world. Furthermore, most of RIM’

revenues come from outside Canada and is truly global brand it is one of the fastest growing company in

the word.

RIM has outstanding success, but there are many challenges behind its success. Clearly, Iphone is a

creative multifunctional Smartphone and very popular in the world. In addition, Iphone has modern

designs such as touch screen and leveling device, moreover, it has a well-known assistant is iTune.

Comparatively, Blackberry is too traditional. Now, RIM should consider product design how suitable for

market demand. In spite of it has good designs, every awarded product must come with full range

customer services.

Maintain the old consumers preferential prices value package gifts e.g. accessories

Attract the new client marketing target Promotion Advertising

Post on magazines or news paper celebrity endorsement

Product Development: Design new products with multifunction Different styles design

High definition monitor

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High quality camera e.g. Leica lens Battery for cruising ability Waterproof for using extreme environment

More entertainments(games download) More assistance such as Apple iTunes

Product launch Venture to make the investments and extent the budgets for popularize their band

and products Make innovation Make a market testing with a exact market position. e.g.

Fashionable products for current generation Functional Smartphone for business people

All sided customer services Set up extensive customer service department in different regions Maintenance department

Expand traditional markets and explore potential markets Belief, perseverance and sincerity for exploring Not only focus on domestic market, but also global market extent

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