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Research in Motion
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Table of Contents
Executive Summary
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Background Information
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Current Business Information
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Executive Summary
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Background Information
All it takes for a revolution in the history of technology is one man’s idea and his belief and determination
in the idea for it to be successful. Michael Lazaridis and Douglas Fregin, founded Research in Motion (RIM), in the
small town of Waterloo, Ontario in 1984. Being graduates of the University of Waterloo’s engineering faculty, both
had ample knowledge and experience with technical hardware, and focused on developing wireless hardware and
software. However, in 1991, Swedish telecommunications company, Ericsson contracted RIM to provide software
support for their wireless modem. It was at that time when wireless communication was just beginning to make the
shift from voice communication to data communication and formed the basis of what we know today as “the
smartphone.” In 1992, Lazaridis hired Jim Balsillie, a Harvard Business graduate, as chairman and co-CEO of RIM.
In the early 1990s, RIM had observed a strong shift towards data communication, particularly email. They were
interested in exploring that market, which gave birth to “The Blackberry,” an email communications device, which
instantly became a status symbol and the most effective and efficient form of business communications in the late
1990s.
The Blackberry, RIM’s signature product, solved the problem pagers and cellphones were encountering - receiving
data. Cellphones and pagers had no problem in sending data, however they were not capable to receive data such as
email and text message. Blackberry was an innovative wireless messaging device, that had the principal advantage
of the system using “push” technology to send and receive email from one device to another. Apart from the highly
praised email service, Blackberry’s were also very eye appealing and had a great form factor, as well as were very
easy to use.
It was RIM CEO’s for forward thinking approach and innovative personality that led to one of 21st century’s most
revolutionary product. This paradigm shift in mobile communication gave birth to many other players in the
smartphone business, as technology improved, so did their devices. Up until 2007, RIM was enjoying it monopoly
over the smartphone business, when Apple introduced an evolution in smartphone devices with its iPhone. Apple’s
version of the smartphone was essentially an evolution to the already popular Blackberry, which was not touch
screen based like the iPhone. RIM has always innovated and continues to do so with its new iPad competitor,
Playbook. As for who will win the smartphone battle, only time will tell.
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Current Business Information
Current Business Situation
RIM, like all technology companies, solely survives on innovation. If they do not innovate, they will not survive,
and RIM has taken that into consideration when developing their products. Whether it was their first Blackberry
device, or the upcoming Playbook, RIM has always infused their products with latest technological advancements,
while maintaining its extremely popular look and feel. This level of innovation would not be possible without the
entire organization working efficiently and communicating effectively among other RIM employees. Due to the
nature of the environment it operates within, RIM has chosen a more organic approach to management, which
allows them to be flexible based on environmental contingencies. They are strong supporters of project team based
business operations, for low level tasks. However, high level business administration at RIM incorporates a
Functional management structure.
In 2008, RIM was named of the “Canada’s Top 100 Employers” by Mediacorp Canada Inc., and were featured in
Maclean’s magazine. This accomplishment is the result of the way RIM operates its business, which is by
effectively departmentalizing the organizational structure, giving employees clear-cut instructions on their
expectations. In August of 2009, Fortune Magazine named RIM as the fastest growing company in the world with a
growth rate of 84% in profits over 3 years, despite the recession which plagued most businesses. The secret behind
their success is the way they handle operations in the organization that led RIM to have a 10.4% share in the entire
mobile telecommunications market, at a time when smart phones were not mainstream.
Current Business Strategy
Research in Motion proves to be a prime example of an international organization that demonstrates every aspect of
a prosperous and successful business. From gaining a competitive advantage by pioneering data communication to
demonstrating corporate social responsibility, RIM and it’s co-CEO’s Mike Lazaridis and Jim Balsillie have built up
a very positive reputation of their company. The respect and recognition it has received over the past several years
are the result of highly effective internal control and social image
In terms of competitive advantage, RIM has demonstrated both cost advantage and differentiation advantage, in
their products, proving cost can reduce while technology improves.
The Blackberry smartphone maker has had moderate success with its current organizational structure, which
incorporates a functional structure form of organization. It involves grouping people with similar task and talents
into specific functions of business. This creates many levels of management, thus resulting in a more vertical
organizational structure, where communication between members of the organization takes several routes. However,
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this results in the lack of constant, current innovation and time effectiveness of product launches, which is where
RIM falls short.
In terms of corporate social responsibility and ethical practices, RIM scores high due to their constant involvement
with the improvement of local services to promote social causes and help with causes that need funding.
Research in Motion is a large technology company, which thrives in a very competitive environment, with constant
threats from competitors and their new products. However, due to their early entrance into the market for smart
phones and their positive public image, helps them gain loyal customers.
One of RIM’s guiding principals is their commitment to immaculate customer service, to which they perform well
to. In numerous surveys held across the world, Blackberry customers rank the service provided by RIM to beat any
other smartphone maker. All of this is possible due to RIM’s constant dedication and commitment to providing the
best smartphone and having the most number of loyal customers.
Analysis of Business Situation
SWOT Analysis
Strengths
• Brand loyalty and awareness
• Strong position in market
• Top-notch email service
• Pioneer in smart phones
Weaknesses
• Lack of compatibility
• Patent
• Lack of many different devices
• Backward RIM OS (operating system)
Opportunities
• Partnership with large growing telecommunications companies
• Further expansion into international market
• Expansion of RIM OS into multiple devices
Threats
• Apple and Android devices
• Competitors have a greater range of products
• Governmental security demands
Competitive Advantage
One of RIM’s biggest strengths is their early entry into the smartphone market, since they essentially helped shape
up the industry, thus they gained a market competitive advantage. Due to their pioneering effort, RIM has gained an
enormous clientele, who will believe in any product produced by RIM. This type of advantage known as
differentiation advantage set apart Blackberry from the other smart phones because consumers can quickly
identify a RIM device and will most likely choose that device as opposed to another device, solely based on the
brand RIM has created for itself. Furthermore, the added features list that come with every Blackberry help reinforce
strong consumer liking for a RIM device. Features such as BBM, Social Networking, and Email set the Blackberry
apart from devices such as the iPhone and Android. BBM or Blackberry Messenger is the primary reason consumers
purchase a Blackberry because it allows for the most secure form of data communication on a wireless network.
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These kinds of services are key to a company’s struggle for survival, and RIM has most definitely captured a large
segment of the market by promoting these features. Another form of competitive advantage gained by RIM is
through cost. RIM has managed to cut costs down of their premier products through constant research and
development, which has ultimately helped them get into the consumer market from the earlier business market. The
number of consumers for Blackberrys is rising due to RIM adding features that relate to consumers, while still
having a strong hold on the corporate aspect.
Blackberry
Target Market
Differential Features
Cost
iPhone
Primary: Business User (business on the
go
Primary: General Consumer (easy
technology seekers)
Secondary: Consumers (adaptive with
high technology, social networking)
Secondary: Business User
BBM, Social Networking Integration,
primarily a texting phone
Easy to use software, AppStore, touch
screen
Most devices less than $300
$500 + (without contract)
Organizational Structure
Form of organizational structure incorporated: Functional
Advantages
Disadvantages
Efficient use of resources
Functional chimneys
Group employees with common expertise
Difficulties in pinpointing responsibility
High quality technical problem solving
Long chains of command
RIM implements a Functional organizational structure, where the organization is divided based on the different
functions of business. There are two co-CEO’s handling the organization, with several directors and managers below
them. It is clearly evident from the organizational structure of RIM, that it is more of vertical than horizontal, having
a long chain of command. Although, RIM has two co-CEO’s, Mike Lazaridis primarily looks into the technical
aspect, being an engineer himself, while Jim Balsillie, being a harvard business graduate, looks over the business
aspect of the company. However, due to the nature of the environment they operate in, a mechanistic functional
organization is not highly suitable. Technology is constantly and rapidly changing, and companies should be willing
to embrace and work around new technologies. Since functional organization is highly mechanistic, it limits the
individual talents and innovativeness of employees, who are restricted to think the way their supervisors and
managers think. A major reason for RIM’s slight loss of market share after the introduction of the iPhone and
Android is the fact that they are essentially a mechanistic organization, in contrast to Apple and Google, who aim at
incorporating the “new workplace” ideologies amongst their employees. Functional organization works best in
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stable environment, however, in the case of RIM, they cannot remain stagnant - innovation is key to their survival
and success as a major telecommunications organization.
Corporate Social Responsibility
RIM has had a major commitment to corporate giving, and has a strong belief in giving back to the community in
which it operates. This ensures improved overall business performance since organizations perform best when they
are located in healthy communities. RIM has not only served the interests of stakeholders but also its employees,
public-interest groups, and many others. For example, the co-CEO has donated large sums of money to the Grand
River hospital in Kitchener, Waterloo and also to the Premier Institute for Theoretical Physics in Waterloo,
establishing a world-class think tank. The co-CEO’s donations to educational institutions like the University of
Waterloo will lead to long-term success because those funds will improve the quality of education of possible future
employees of RIM, which in turn will bring more innovation and creativity to the company; supporting the corporate
culture of RIM.
Question 7
Employees within their respective businesses use their Blackberry in many ways, in terms of
communication in certain organizations, employees use BBM (Blackberry Messenger) and email
to communicate with colleagues and other business partners. The use of the Blackberry has become very time efficient. You could know discuss certain details with the use of the Blackberry
instead going into meetings. The Blackberry, also known as the “Crackberry”, has its advantages
and disadvantages. Some advantages of the Blackberry include the fact that is makes businesses
run more efficient. The Blackberry Makes group communications in a business organization
more effective and efficient. The Blackberry is also a great tool for Microbusiness, which is basically completing small tasks related to a business. The Blackberry also has its disadvantages. It
is very addicting (Crackberry). From facebook, to Twitter to BBM, some people can let go of
their Blackberry. The Blackberry lacks innovation. It is always the same concept; full keyboard,
or touch screen or same design.
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