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Life On BlackBerry. Research In Motion. MGMT 619 – Capstone Project June 4 th , 2009 Lishuang Wu, May Chen, Wei Lii Tan, Robin Salim, Jin Choi. Image source: RIM Annual Report. Blackberry Ecosystem. Source: CIBC World Market. Source: RIM Website. Source: RIM Website. Threat of Rivalry.
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Life On BlackBerry Research In Motion MGMT 619 – Capstone Project June 4th, 2009 Lishuang Wu, May Chen, Wei Lii Tan, Robin Salim, Jin Choi Image source: RIM Annual Report
Blackberry Ecosystem Source: CIBC World Market Source: RIM Website
Threat of Rivalry Ecosystem - 3 3 party party rd rd Suppliers Suppliers Value Add Value Add & Global & Global Design & Design & Standards Standards Platform Platform Operating System Operating System Operating System Solutions Solutions Distribution Distribution Providers Providers Providers & Services & Services Wireless Wireless Wireless Standards Standards Standards Application Application Application Retailers Retailers Retailers Committee Committee Committee Developers Developers Developers End Users End Users Mobile Device Mobile Device Mobile Device Business Business OEMs OEMs OEMs & Consumers & Consumers Factories Factories Factories Network Carriers Network Carriers Network Carriers & Outsourced & Outsourced & Outsourced Semiconductor Semiconductor Semiconductor Manufacturers Manufacturers Manufacturers & Hardware & Hardware & Hardware Providers Providers Providers Network Systems Network Systems Network Systems Providers Providers Providers Content Providers Content Providers Content Providers Wireless Mobile Industry Ecosystem High Role of Complements Barrier of Entry High High Threat of Substitutes Supplier Power Low Low Buyer Power High
Driving Forces: • Early adopters • Product rich features • Life management device • High speed networks Smart-phones: • e-mail, internet • Entertainment • Applications • Storage Global Smart-phones Market(2008): • high growth, 33% growth • High volume,138 million units • High revenue, $48 billion • High profit, 30% profit margin
Broad Differentiation Leader in the world (Europe and Asia) Acquired Symbian OS Cost Leadership, Flexible mobile partner Partnership with Google to introduce Android Windows Mobile Focused Differentiation, Entrenched in enterprise, growing consumer base Leader in Technology #1 in U.S, International expansion Focused Differentiation, Strong Contender, 245% growth Leader in Brand, Design, Technology, Usability enthusiastic customer base International and enterprise expansion Cost Leadership. Commodity handsets. Still decent market share,leader in Asia
Key Value Drivers • Brand • Touch Screen • Screen size/resolution • Camera • Internal memory • 3G • Gross Margin • RIM 51% • Apple 34% • Nokia 34% • Motorola 27% • Palm 30%
Implications to RIM • Improve brand image • Diverse applications • Higher switching cost • Attract high-end consumers • Threat • Netbook, Media internet devices, VoIP • OS platform war • Low end smartphones • Global economic downturn • Opportunities • Social networking • Application driven services • Business applications • Fashion identity
Internal Analysis Definition: A leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Mission: Commitment to quality and a culture that embraces innovation, customer service and operational excellence. Vision: 'Always On, Always Connected' computing and communications.
Corporate Level Strategic Position Business Portfolio & Strategic Sourcing Framework
Corporate Level Strategic Position BCG Matrix Relative Market Share High Low Blackberry Wireless Solution High Growth Rate Low Blackberry App. World Blackberry Pearl and Bold
Business Level Strategic Position Product Segmentation
Value Chain - Strong Management Team • Innovation Culture • In house R&D and Manufacturing Firm Infrastructure - Hiring practice - Weekly Vision training Human Resources - ISV and alliances • Strong R&D team Tech. Development - Licensing and Patents - RIM OS and enterprise solutions • Multivendor strategy Procurement • Controller Sourcing • Directly Negotiate Pricing INBOUND LOGISTIC OPERATION OUTBOUND LOGISTIC MKTG & SALES AFTER SALES SERVICE • EMS • Flex production • Supply Chain integration • 5 customer support centers worldwide • Multilingual - 475 partners in 160 countries
RIM’s 4P’s Product Price Placement Promotion Online and traditional retailers, wireless service providers RIM: http://na.blackberry.com/eng/. (Pull Strategy) Service Partner: Verizon(Buy one get one free), AT&T Viral Marketing: Youtube, blogs (crackberry.com, rimarkable.com)
Financial Analysis Income Statement Balance Sheet Cash Flow Statement
Strategic Effectiveness Analysis Lifecycle Apple-iPhone Network Shadowing & AppWorld
Strategic Effectiveness Analysis Resources Potential Issues