Zack, Jannus, Steve, Heidi and Kim
INTT 1B
Research In Motion (RIM)
Introduction:
Rim is one of the leading cell phone providers in North America. Being in direct competition
with Apple’s Iphone has given them tough competition. The rates in which Iphones are flying
off the shelves are staggering. If RIM continues on their current course, they will be overtaken
in their home continent, which is also where the Blackberry has the highest popularity. They
must change their marketing strategy and product strategy so that they continue to expand in
the global market.
Problem:
How could RIM increase brand power and grow their market share in North America and in the
global marketplace for the long-term?
Facts:
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According to RIM’s 2008 annual report, 92% of its revenues come from outside of
Canada. Their products are sold in over 135 countries.
Grown from 1250 employees to 7000 employees in 2009.
Over 21 million people use BlackBerry smartphones on over 375 wireless networks in
140 countries around the world.
Since the release of the sleek BlackBerry Pearl in 2006, the company has aggressively
targeted the retail market.
More than three quarters of North American enterprises support or manage the
BlackBerry operating systems.
Assumptions:
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Economic weakness has slowed corporate demand for new smartphones, but it remains
a high-margin business line for RIM. And as the economy recovers, sales should surge as
companies upgrade systems and handsets to newer models.
The BlackBerry faces plenty of competition, including the latest iteration of the iPhone.
But given smartphones’ still-low penetration, there’s plenty of room for multiple
competitors. The real market losers have been traditional cell phones.
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B
Research:

For bibliography please refer to the reference section of the report.

http://media.compete.com/site_media/upl/img/EW-Blackberry1.gif

http://static.seekingalpha.com/uploads/2009/1/8/saupload_paul3.jpg
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INTT 1B

http://weblogs.hitwise.com/robingoad/uk%20internet%20searches%20for%20apple%20iphone%20killers%20lg%20viewt
y%20htc%20touch%20samsung%20sould%20blackberry%20bold%20nokia%20n95%202
008%20chart.png

http://images.intomobile.com/wp-content/uploads/2009/09/smartphone-customersatisfaction.png
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INTT 1B

http://www.techcrunch.com/wp-content/uploads/2009/05/evernote-pie-charts1.jpg

http://internet2go.net/news/Data%20And%20Forecasts?page=5
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B

http://internet2go.net/news/Data+And+Forecasts
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INTT 1B

http://internet2go.net/news/Data+And+Forecasts
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B

In terms of loyalty (below) see the bold text; it indicates how the owners of the
particular handset perceive their own phones. The other numbers are perceptions of
other smartphones. Note that BlackBerry users appear to be fairly ambivalent about
their phones according to the survey, with 43% saying the iPhone is the "ideal
smartphone," vs. 49% who believe that about their RIM handsets.

http://internet2go.net/news/hardware/smartphone-satisfaction-iphone-android-pre
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B
SWOT Analysis:
Strength:
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A brand that inspires extreme loyalty and interest among customers.
RIM technology also enables a broad array of third party developers and manufacturers
to enhance their products and services with wireless connectivity to data.
support multiple wireless network standards
Provides platforms and solutions for seamless access to time-sensitive information
including email, phone, text messaging (SMS and MMS), Internet and intranet-based
applications.
Research in Motion retains major competitive advantages in the market for large
corporations thanks to its proprietary BlackBerry Enterprise server system. The system
provides superior security and faster e-mail delivery than competing systems such as
Microsoft’s Active Server.
Weakness:
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Only focused on a certain group of consumers (professional, executive, industrial market)
makes it difficult to capture the entire market for Smartphones which consists of kinds
of consumers.
Smaller finance compared to competitions.
Local Canadian market is small compared to the global potential market.
Most of RIM’s product designs are generally similar, which may not appeal to all
consumers.
RIM’s operating system isn’t user friendly to all consumers.
Opportunities:
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Great potential global market.
Smartphones only account for 11% of the world’s mobile handsets; in the US. It still
remains under 20%. This leaves plenty of room for further growth in both domestic and
global marketplace.
The release of Apple’s new iPhone handsets acted as a catalyst for RIM because it raised
consumer awareness of Smartphones. In fact, since the release of the first iPhone,
BlackBerry’s global market share has doubled.
Great potential market in Asia. The Asian market is growing very fast with nations such
as China and India. Since Symbian OS is the only dominating operating system, there is a
good opportunity for RIM to increase its market share in Asia.
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B
Threats:
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Powerful competitors in the market such as Symbian, Microsoft, Apple, and Android.
Apple’s iPhone is a direct competitor of RIM’s Blackberry Storm which dominates over
the younger consumer market.
Increased pressure for RIM as the iPhone becomes cheaper and more widely available
around the world.
News that the iPhone will be available from all three major Canadian carriers earlier
than expected also comes as a threat which makes analysts wondering whether RIM's
market share will be eroded by competing devices.
Competitive Analysis:
Until now, only the third major wireless carrier, Rogers Communications, was able to offer the
iPhone in Canada. That's because Rogers' network uses the GSM and HSPA wireless technology
on which the iPhone operates.
BCE and TELUS announced this week that an HSPA upgrade of their networks that was
supposed to be finished by early 2010 will now be ready in November. Both also announced
agreements with Apple that will see them offer the iPhone in Canada.
Analysts have cautioned that the heightened competition in Canada, and elsewhere, could dent
RIM's growth prospects, profitability and, consequently, its share price.
It removes one of the key competitive advantages that RIM has had in the Canadian market
APPLE: iPhone 3G
Strengths:
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3G technology has faster internet speed to compare with same level smartphones.
Fast market share development and loyal customer groups.(favorited by new
generations)
Supported well by entertainment product (downloadable music, movie, game etc.)
Value Proposition
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The new iPhone delivers a different value proposition via software, so the pricing plans
will be viewed through the lens of its new software applications capabilities
Relative Price Points
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B

The BlackBerry Bold is somewhere in the range of $199-$299 with a 2 year contract, and
the iPhone is $199 at 8GB and $299 at 16GB, so the pricing seems to be fairly equal
between the two.
Distribution
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Unlike the limited distribution model in the US, where consumers may only purchase
phones from the company or from AT&T, overseas customers will be able to find the
new phone in plenty of places.
NOKIA: N-96
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better part of the front containing the screen and a smaller portion containing the
keypad, but not the keyboard
have a great camera, a 5 megapixel in the back, and a smaller camera in the front for
self pictures
better looking phone
Value Proposition
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Nokia focuses exclusively on the mobile industry bringing a global perspective and deep
understanding of global trends. Nokia is an active investor adding value through
strategic insight, operational experience, and a vast network of contacts in the mobile
industry. Our close working relationship with Nokia encourages a collaborative process,
which we believe enhances the likelihood and magnitude of success for the partnerships
Nokia develops with companies in which we have invested.
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INTT 1B
Relative Price Points
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The Nokia N96 is set to be sold at about $800, which means that you could get two
Bolds for the same price as one N96. I would just save my money and definitely go with
the Bold in this case.
Distribution
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Nokia, as one of the largest mobile phone manufacturing companies in the
world.Canadian carriers for Nokia include Fido, Rogers Wireless, Bell Mobility, SaskTel
Mobilty, Aliant, MTS Mobility, Virgn Mobile, Telus Mobility, Telebec and Primus.
HTC: HTC- Dream
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It’s the first android phone (open source mobile platforms developed by google and
open headset alliance)
Keyboard is tucked behind the screens
Better web browsing
Value Proposition
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produces powerful handsets that continually push the boundaries of innovation to
provide true mobile freedom.
Relative Price Points
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It is priced starting at $149.99 for new and existing T-Mobile customers if purchased
with a two-year T-Mobile voice and data plan, and $399 without a contract
Distribution
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Distributed in Canada by Bell, Rogers and Telus.
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B
World Market Share for Mobile Phone
Companies
iPhone
Symbian
RIM
Android
Windows Mobile
Other
Market share:According to mobile advertising company AdMob, the iPhone's world-wide
smartphone market share has reached 40% in just over two years. Meanwhile, competitors
Nokia and RIM lost ground. In North America, the iPhone grasps some 52% of the market. At
the same time, Nokia's market share dropped around the world from 43% to 34%, RIM (from 10%
to 8%), Windows Mobile (from 7% to 4%) and Palm OS (from 3% to 1%). Although RIM’s drop in
market share, it continues to have top-ten-selling smartphones.
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B
Target Marketing:
From the SWOT analysis, we come to the conclusion that Asia is our focused target market. Our
main objective is to develop and pursue new marketing strategies for this general market.
After analyzing the different segmentations for target marketing; we conclude that geography,
culture, and occupation are the most significant factors influencing RIM to choose an Asian
target market.
First, regarding the level of government control in the market, we can separate it in to three
segmentations by geography:
1. Countries where the governments are the central markets. For example, countries such as
China, Vietnam, Mongolia, Myanmar, and Indonesia. In these countries, government
policies have great influences over their consuming markets. When the government
supports a company, this company will develop very fast. Companies supported by the
government in these countries can easily expand in the local market.
2. Countries where semi-governments are the central market. For example, countries such as
India and Palestine. In these countries the government doesn’t have a great control over
the market. Companies can develop their products to a certain extent.
3. Countries where there are non-central markets, such as Japan and Singapore. In these
countries, companies can freely develop in any area. However, European cell-phone
companies have already occupied a vast majority of these countries. As a result, if
Blackberry wants to develop in these markets, it will have many powerful competitors.
Second, regarding the major cultural influences in Asia, two main theologies dominate the
target market. They are the Communist Party and Muslim followers, respectively. When
Blackberries are promoted in these marketplaces, RIM needs to pay more attention to these
dominant factors because different cultures have different consumer behaviors. RIM can
research and design special advertisements and promotions for these specific groups of people.
Third, regarding the occupation of consumers, RIM should focus on government and military
officials, and professional businessmen as well as others.
In conclusion, the Asian target market for Blackberry can be countries where the government
controls the central markets, because the main customers of Blackberry will be focused on the
government and military officials. When the government supports our Blackberry in these
countries, it can directly accelerate the development for our chosen target market in a short
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INTT 1B
time. Furthermore, most government and military officials are composed of the middle and
upper classes of society. Therefore, RIM can not only provide high end products to cater to
their requirements, but also raise the price of the product to increase profit.
Alternatives:
1. Change the look of the products.
Although functionality is important, people care what their phone looks like. If phones
are cool or cute, people will buy them. Right now all blackberries look similar. They all
have a screen and a keyboard. Now the look of the blackberry is very straight forward,
nothing exciting. If they make it more aesthetically pleasing, it may be able to attract the
market where the look of the phone is important to them.
Disadvantage:
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It’s costly to invest in the innovation of a new look.
To venture into a new look, is very risky and it might not work.
BlackBerry’s strengths are the fact that it is efficient and professional. This new
approach wouldn’t be playing to their strengths. Not known for the look, they would
be advertising for something that aren’t their strengths.
Advantage:
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You have a complete new market to be tapped into
You’re stealing the competition’s customers
2. New Marketing strategy.
This is done by convincing consumers that blackberry isn’t just a phone but a lifestyle
that you buy into. Ex. Customers who buy Macbook are more likely to drink Starbucks
and buy organic food. If you accomplish this goal the rewards will be big.
Disadvantage:
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It’s costly
Your basically starting from square one by reinventing yourself.
This big gamble might not payoff and be a failure in the business world. Your
company takes a hit image wise
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B
Advantage:
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If this works your can dominate a larger portion of the market taking some of apple’s
customers
Your gain loyal customers. ex. Apple has loyal customers who buy apple products
(mp3, laptops, phone) when considering electronics.
Your gain notoriety throughout the world. Your stock will rise in parts of the world
which blackberry isn’t popular or isn’t a household name.
3. Product strategy in attracting consumers from the Asian market:
Disadvantage:
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There are high investments to get in to this new market.
Powerful competitors such as Symbian are already dominating the current market
share for the operating systems in Asia.
Customer loyalty has to be redeveloped.
Advantage:
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Asia contains the highest population in the world, and possibility the largest
untapped market in the world.
Production cost can be significantly lower in Asia.
There is a rapid growth of the middle class in the Asia market with major developing
nations.
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B
Solution:
For RIM/Blackberry, their problem is that they have to somehow increase their brand power
and get more global market share because their domestic market is shrinking due to fierce
competition with Apple. The solution that we have chosen is that they should venture into the
Asian market by partnering with an Asian company and market towards government officials
and the business class.
Implementation Plan:
Most markets around the world are dominated by either Apple or Symbian operating systems.
That being said, we feel that the best way for RIM to expand their business is to venture into
the Asian market. With the options of either expanding software or hardware, we chose
software as the main bargaining chip. If you compared the different types of hardware being
distributed around the world, there are too many variable. When we considered software, the
pies divided are much smaller, meaning the competition is small. Usually, there are only
between two or three companies in each continent that are in serious competition. Since
marketing the Blackberry products hasn’t worked in Asia so far, we think the way to go is to
expand by expanding user that use the RIM software. We chose the Asian market because the
operating system “Symbian” is most dominant in this market. The majority of our analysis is
based on the following chart which show which operating systems are being used in the world.
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INTT 1B
With our goal of targeting the Asian market, we included India as well but left out Japan for
reasons that we will explain later. As shown above, Symbian is the most dominant in Asia. RIM
only has a tiny share of this market. By analyzing the company “Symbian” further, we
discovered that the hardware being used consists of many different companies as shown in the
following diagram.
We noticed a pattern that most of these companies belong to the Asian countries with a few
exceptions, one being Eriksson. The conclusion that we came to, is that there is a certain loyalty
to Asian companies from the general population. Seeing this, our plan is to team up with
smaller cell phone companies that don’t use Symbian software. Given that RIM does have a tiny
niche in this market; it would be advantageous to convince them that RIM software is the way
to go, RIM will establish a bigger part of themselves in the market. With this international
partner, they will strike a deal to produce the Blackberry phones in their country. Hopefully
they will gain more customers country by country.
The Asian market is special in itself. RIM must change their approach in convincing consumers
to buy their product. Doing a massive campaign for all asian countries would be pointless as the
difference in culture from country to country is vast. So, an example say for China, the
government holds very high importance within the general population. Any material good that
they possess is considered high class and if civilians were to have this, they will feel as if they
too possess power and be the epitomy of class. Our plan is if we can gain the backing of the
government, they will “persuade” other government officials to purchase said product and the
general population will follow suit. In marketing their products to these individuals, they will
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B
market them as classy, upscale products that mean something when you own them. They will
increase the price on the Blackberry to add that mystic of if you own it, you’re special.
The reason why we chose not to even dare to venture into the Japanese market is because
most companies that are apart Symbian are Japanese. Trying to gain a small share of this
market would be a waste of time and resources.
In the end if this is successful in either India, China or both would be huge in Rim’s success.
Combined, both countries have more than 2 billion people who are potential customers.
Plan B:
Develop new marketing strategies for RIM’s home ground in North America to compete head to
head with Apple’s iPhone.
Course Concepts:
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SWOT analysis
Target Marketing
4 P’s
Segmentation, Targeting and Positioning
Product Life Cycle
Value Creation
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Zack, Jannus, Steve, Heidi and Kim
INTT 1B
References/Bibliography:
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Research in Motion (RIM)
http://www.rim.com/
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Get the Facts
http://na.blackberry.com/eng/ataglance/get_the_facts/
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Research in Motion (RIM): Blackberry bet
http://www.mrswing.com/articles/Research_in_Motion_RIMM_Blackberry_bet.html
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ANALYSIS-iPhone at BCE, TELUS raises stakes for BlackBerry
http://www.forexyard.com/en/reuters_inner.tpl?action=2009-1006T171515Z_01_N06425464_RTRIDST_0_RIM-IPHONE-ANALYSIS

Market share of Smartphones
http://www.informationweek.com/blog/main/archives/2009/09/iphone_ad_marke.htm
l;jsessionid=EXSK01C4GC5NFQE1GHPSKHWATMY32JVN?queryText=market+share+smar
tphone
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Symbian spider graph
http://www.inf.u-szeged.hu/sed/files/projects/symgcc/symbian.jpg
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iPhone and iPod Touch share by region graph
http://techterminal.info/wp-content/plugins/wp-omatic/cache/700c8_iphone_share_region.png
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Operating system share by region graph August 2009
http://fortunebrainstormtech.files.wordpress.com/2009/09/screen-shot-2009-09-30-at1-40-07-pm.png?w=513&h=326

iPhone v. BlackBerry: Side By Side, Two Week Comparison
http://www.techcrunch.com/2007/07/25/iphone-v-blackberry-side-by-side-two-weekcomparison/

Great Geek Debates: iPhone vs. Blackberry
http://www.wired.com/geekdad/2009/08/great-geek-debates-iphone-vs-blackberry/
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