Blackberry Case
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Introduction:
RIM is a successful company that has a strong market share in the mobile Smartphone
market but the introduction of the Apple iphone has created a stiff competition for RIM
the parent to Blackberry.
Problem:
How can Blackberry overcome Apple’s success and maintain a brand that remains at the
top of all its competitors.
Price for 3year plan
Price for no term
Market share 2008
Market share 2009
Market share increased
Company revenue
increased compare to last
year
iPhone
$199
$680
5.3%
10.8%
5.5%
Blackberry
$199
$600
13.3%
19.9%
6.6%
6%
37%
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Key Findings:
 Provides communication for over 14 million people in over 135 countries.
 Blackberry’s appeal has come largely from the “professional”, such as executives’
industrial market.
 Its competitor Apple, dominates the consumer market.
 Apples revenues have more than tripled within the past three years to $ 19
billion. This is more than the last three years combined. As a result Apple has
extensive access to money, it allows them to use various promotional techniques,
compared to Blackberry.
 Apple iPhone 3G is direct competitor to Blackberry storm.
 Apple is very innovative, and was awarded most innovation company three years
in a row by Gadgets magazine.
Assumptions:
 Apple has means of resources to continue researching and developing new ideas
and technology.
 Blackberry does not to put much time into developing a relationship with non
executive people, an everyday consumer.
SWOT Analysis
Strengths
 Blackberry is highly secure, it integrates well with other platforms, it works with
several carriers, and it can be deployed globally. It is easy to manage, has a longer
than usual battery life, and has a small form-factor with an easy-to-use keyboard.
 Blackberry has various features that come with the phone – text, touch screen,
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




email, calling, internet access, GPS.
Get all of your desktop Business applications and email all on one incredibly
useful mobile device.
BlackBerry TM is a integrated package that includes wireless phone, hardware,
device software and hosted service, providing you with a complete end-to-end
email solution!
All over the world business professionals are using this excellent, effective and
proven solution. There more than 28.5 million users worldwide. BlackBerry's
global deployment expands to more than 45,000 corporate and government
organizations. Can be used in 165 countries/regions and on more than 475
networks. Blackberry is a complete wireless enterprise solution. The BlackBerry
interface provides a fully integrated security platform, which is wirelessly stored
in existing enterprise and applications systems. An extension of business
information to professionals. This is a complete solution, providing enterprises
with all the necessary wireless connectivity: innovative software advanced
wireless handheld devices, wireless network services and important support
programs and services.
BlackBerry Enterprise Server - BlackBerry Enterprise Server software and
Microsoft Exchange, IBM Lotus Domino. And Novell GroupWise e-mail servers,
and other existing enterprise applications and systems tightly integrated, users
can e-mail and business information based on the "push "Technology's wireless
access.
44.5% of US market.
Weaknesses
 Declining brand.
 Established itself as a professional brand.
 Lack of a relationship with the regular consumers as to Apple’s main market is
the regular consumers.
 Settlement that they had to cover. This creates a down fall over of possible new
consumers because they may feel like Blackberry is taking their money.
 Have been recent complaints on the phone.
Opportunities
 Have their own satellite system.
 Have connections with various carriers and suppliers.
 The phone is being sold through various companies like: Rogers Wireless, Fido.
 The Blackberry brand is known and shared through out the world, 135 countries.
Threats
 A lack of carriers in different countries.
 More and more people are using the Apple iPhone.
 The regular consumer market has a lack of interest towards the blackberry.
 New competitors, with newer innovations and features like: Apple, Nokia.
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Competitive Analysis
 Competing against the likes of Apple iphone, Nokia, and up and coming new
brands and phones.
 Relative prices to other products.
 Distribution of other phones, where blackberry may not be distributed.
 Relative prices with the same features will result in consumers getting what
meets their interest, utility.
 Apple has a very large consumer market.
Target Market:
 Target the younger generation:
 Aging between 14-25 years old
 Increase market share Globally
-Targeting the regular consumer market:
 Average income households.
 Regular cell phone users
RECOMMENDATIONS:
Alternative 1:
Make a direct commitment to advertise the Blackberry Storm and Pearl and move into
the consumer market. Build a relationship with the younger generation by developing
applications that caters to “pop culture” like: media player, movies, music, games.
Reduce the price by a small percentage so that it is affordable for younger people who
may not have steady jobs.
Advantages:
Blackberry would be considered a consumer friendly product.
 Tap into an unexplored market, resulting in increased market share.
 Blackberry will not only have the business customer but also the regular
consumer market, which means more sales.
 Tapping into the younger generation will establish a status symbol.
 By adding these extra applications allows for the younger generation to
enjoy and entertain themselves.
Disadvantages:
 Blackberry has a lack of experience of how to market or sell to the consumer
market.
 Is a expensive marketing campaign to develop.
 Product may not be accepted.
 There may be a lack of interest in the product.
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 Difficult to build a relationship with a new consumers.
Alternative 2:
Developing the Blackberry brand in a non- North American market, like Asia.
Advantages:
 Untapped market
 Potential sales can be large.
 Fewer competitors
Disadvantages:
 Consumer are unfamiliar with the brand
 Distribution difficulties
 Do not have network suppliers to support Blackberry
 Will incur more costs, when trying to penetrate different markets.
Alternative 3:
Reducing prices on particular phones and plans to encourage the regular customer to
consider Blackberry as their cellphone choice.
Advantages:
 Reducing the price, may result in more customers and generate more profit
 Consumers will be more inclined to purchase blackberry products and plans.
 Eliminate competitors.
Disadvantages:
 Consumers are finicky
 Research and development may be expensive for finding ways of making the
product, selling it for cheaper and still have increased sales.]
 Diluting the brand may result in alienating core customers.
 May over saturate the market.
Solution:
We choose alternative one as our next step in developing Blackberry into a bigger brand.
While the iphone poses a direct threat to Blackberry it is wise to fight back and put forth
a product that can compete directly with the iphone. If RIM is successful they will be
able to erode the dominance that Apple has with the large consumer market. This is key
for Blackberry to get to the next step and develop a relationship with the regular
consumer market if you will. By focusing on the younger generation this in part takes
Blackberry into a new group, a group that is globally staying consistent with the pop
culture era. Advantages to this are that it will make Blackberry a much broader brand
that is more instantly recognizable. A disadvantage to this solution could be that the
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customer does not show an interest in the product that is being introduced.
Implementation Plan:
 Keep prices relative to the iphone
 Develop more applications like: media player, games, music, movies.
 Come up with strategies to promote the entertainment applications of the
Blackberry.
 Develop new advertising ways to target the younger generation:
 Be more hip
 Associate a fun and exciting way of life with Blackberry
 Market the product where majority of our target market will be frequent, like:
 Malls
 Colleges and Universities
 Department stores (Wal- Mart)
Plan B: Alternative 3
Reducing prices on particular phones and plans to encourage the regular customer to
consider Blackberry as their cellphone choice.
Course Concepts:
An important part of the BlackBerry case study was performing a SWOT Analysis of the
company. By identifying internal and external strengths and weaknesses of the company,
we are better able to spot the areas in the company that needs improvement and
understand where the strengths of the company are. We are able to see the loyal
segmentation for BlackBerry stands with corporate clients. The loyalty of the business
executive for BlackBerry product has made the company a market leader in this segment
of the mobile phone industry. It is important for RIM to hold on to these customers by
ensuring they remain satisfied customers.
An area of the market that BlackBerry could tackle would be to venture into the
consumer cellular phone segment. By using the marketing tools of STP (segmentation,
targeting, and positioning), we devised a plan for BlackBerry to venture into this area of
the industry. The BlackBerry Storm is the newest product that is placed in the market to
directly compete with Apple’s iPhone. We propose that the BlackBerry Storm, is
targeting and positioning itself to the same cell phone consumers who like the iPhone’s
hip and multi-application features. We used the 4Ps of marketing to implement our plan
to capture some of Apple’s customers in the consumer market. The BlackBerry storm is
priced comparably to the iPhone. The Storm has similar features and applications to the
iPhone and will be marketed to the same demographics who like hip and fun cell phones.
The phone will be placed easily available to consumers at places like the malls and
department stores.
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References / Bibliography:
"http://www.wikinvest.com/stock/Research_in_Motion_(RIMM)"
“http://www.nytimes.com/2009/10/14/technology/companies/14rimm.html”
“http://www.blackberrycool.com”
“http://www.blackberry.com”
“http://www.rim.com”
“http://en.wikipedia.org/wiki/BlackBerry”
“http://www.blackberryvsiphone.com/”
“http://www.techcrunch.com/2007/07/25/iphone-v-blackberry-side-by-side-two-weekcomparison/”
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