BLACKBERRY
Case Study By
Amanda White
Greame MacPhail
Chantal Bongalis
Rob Elliot
Kayla Nessman
Sydney Gregoire
CONTENTS
PROBLEM ANALYSIS .......................................................................................................................... 3
OUR ASSUMPTIONS .......................................................................................................................... 3
SWOT ................................................................................................................................................. 4
SWOT ................................................................................................................................................. 5
DEMOGRAPHICS ................................................................................................................................ 6
RIM 3 OPTIONS.................................................................................................................................. 7
CHOSEN SOLUTION ........................................................................................................................... 8
PRODUCT DEVELOPMENT ................................................................................................................. 9
REFERENCES .................................................................................................................................... 10
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PROBLEM ANALYSIS BLACKBERRY
"We see this very large and untapped consumer market," Jim Balsillie, CEO RIM (RIM Plans NextGen Storm...,2009).
Traditionally, BlackBerry phones have targeted business professionals only. They were not priced
or developed for the everyday cell phone user. No longer are they reserved for traveling sales
people and executives. RIM sees the potential in pursuing the consumer market and they are
faced with competition; the iPhone by Apple.
A consensus of team ODB decided that the main problem for Research In Motion, is their lack of
share in the general public. This market would be defined as the consumer market, who do not
necessarily use their phone solely for business purposes, but more as a tool in their everyday
lives.
How can BlackBerry grow its share of the consumer market and continue to be the dominant
brand in mobile internet communications?
OUR ASSUMPTIONS BLACKBERRY

Research In Motion (RIM) is dealing with an extensive budget, and can afford to develop
new products and launch tremendous marketing campaigns.

RIM has established brand equity, a trusted name and product.

Blackberry is currently a leader in the Smartphone industry and represent a substantial
share of the market. They have a strong following of business professionals.

RIM's sales have plateaued, yet they will continue to operate and attempt to grow their
organization and current market share.
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SWOT BLACKBERRY
STRENGTHS
Great brand equity
Strong depth in product line
Dominance in business market
OPPORTUNITIES
Expand marketing efforts
Continue developing product depth
WEAKNESSES
Approaching maturity phase of Product Life
Cycle
Falling stock prices
THREATS
Strong competition
The economy
STRENGTHS
Blackberry has great customer loyalty and powerful brand equity. State of the art technology
and research has enabled the development of a strong product line over the years. It has been
the dominant brand in mobile internet telecommunication, capturing the business market since
its introduction to the market place.
WEAKNESSES
When looking at the Product Life Cycle, it appears as though BlackBerry is moving into its
maturity phase. The summer quarter saw net income fall 26 % from the previous quarter (RIM
stock crashes on outlook..., 2009). The financial world also seems less optimistic about RIM, the
parent company of BlackBerry, as stock prices dropped 19% in September and ratings fell (RIM
stock crashes on outlook..., 2009).
OPPORTUNITIES
Several opportunities are available to BlackBerry including continued developing of its product
line depth, expanding its marketing efforts to maintain its market share and to capture more of
the consumer market.
THREATS
BlackBerry has to contest with an ailing economy and its affect on the Canadian dollar. The
Canadian dollar has been rising and is currently at 0.9706 USD (World Currencies, 2009), which
could hurt BlackBerry’s exports. The increase in competition is a strong threat, especially from
the Apple iPhone, which has the market share in the consumer mobile internet communications
market.
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SWOT iPHONE
STRENGTHS
Innovative technology and user friendly
Multiple applications
Growth phase on product life cycle
OPPORTUNITIES
Expand into business market
Future partnership opportunities
WEAKNESSES
Weaker reputation with business market
Price
Less data capabilities
THREATS
Increased competition
Downward pricing pressure
STRENGTHS
The iPhone’s strengths come from it’s easy to use touch screen and innovative technology. Much
like the iPod, the iPhone is very compatible and offers multiple original applications. Currently it
is in the growth phase on the product life cycle.
WEAKNESSES
The Apple brand is not targeted towards business people, and doesn’t have a reputation of being
compatible with the corporate world. It is much more expensive than most of the competition,
for example in Canada, iPhone 3G costs $200 with selected 3 year plans and retails between $
400-$600 (Plans, 2009) . The data capabilities are not as powerful as Blackberry, and it also does
not have instant messaging capabilities.
OPPORTUNITIES
The business market still has not been tapped into by iPhone, and there is opportunity for
expansion into that market. Increasing partnerships with service providers, like their current
partnership with AT&T(iPhone Partneship Boosts Popularity, 2009), could also increase iPhone’s
market share.
THREATS
Competition is fierce in the Smartphone business, with more companies entering the market and
creating similar products. The iPhone is marketed as a high-end phone, but the price will fall
when other companies undercut the price of iPhones. Although huge in North America, there is
less hype and interest overseas since smart phones are better known and already widely used.
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DEMOGRAPHICS BLACKBERRY
Traditionally, Blackberry phones have targeted business professionals only. They were not priced
or developed for the everyday cell phone user. No longer are they reserved for traveling sales
people and executives. RIM sees the potential in pursuing the consumer market and they are
faced with competition; the iPhone by Apple.
As of September 2009, the total BlackBerry subscriber account base was approximately 32
million. (Motion, September 24, 2009) http://finance.yahoo.com/news/Research-In-MotionReports-iw-1951190285.html?x=0&.v=1 The BlackBerry now appeals to anyone who checks
email multiple times per day and uses their mobile phone as a landline.
Men and women are equally interested in the Blackberry. Female consumers have grown over
the years, and Blackberry has purchased advertising space in publications such as Elle, Martha
Stewart Living and Oprah Winfrey’s magazine, O, in order to maximize the emergence of this
demographic. (theenglishteacher on February 14th, 2009)
http://theenglishteacheronline.com/tag/teachers/
BlackBerry has been integrated into various lifestyles. It has become a security device for busy
parents, a way to stay connected at all times. Also, the tech savvy consumer constantly pursues
the latest models and applications; a very loyal customer. The frugal fanatic makes modest but
regular purchases. Meanwhile the younger generations are captivated by style and function. RIM
targets the younger crowd by offering social applications such as facebook, twitter and games.
The average age of users is 18 to 49 years old. We have chosen the age segment of 20 to 30
years of age as our focus point. Our goal is to target younger generations who are transitioning
into the work force and who will make up the majority of the business world in the future.
Individuals with an income of 20k-40k per year make the most BlackBerry purchases, yet every
income level from 20k to 100k + engage in buying this product.
Although Blackberry is a Canadian company, there seems to be a greater demand outside of
Canada. 92% of their business is out of the country, which means there is an untapped Canadian
market. Statistics show that Quebec is the lowest consumer in Canada, leaving opportunity for
first time buyers.
The BlackBerry has reached across cultures and countries and is a truly global brand.
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RIM 3 OPTIONS BLACKBERRY
Product Development – Combining Business with Leisure
In option one, RIM will improve its existing cell phone line to continue to fit the needs and satisfy
those in the business world while adding a leisure taste to the phone. They will improving on
their business features making them more efficient and accessible, while also adding in new
features and applications to add a lighter side to the phones.
STRENGTHS
Add to its target market by trying to hit a newer and
younger demographic
Keep its already existing and strong market
Adds indirect competition to leisure only phones.
WEAKNESSES
By still being business directed it does not fully
address the consumer market.
Added costs to pay for research and development
on new features.
Possibility of losing customers who liked the
original version more
Market Development – Creating direct competition to the iPhone
In option two, RIM will take a whole new approach to its cell phone line. RIM will be adding a
brand new trendy look to the phone while adding features and applications to make the phone
more fun. The goals of this product will be easy use and endless possibilities of ways to have fun.
STRENGTHS
WEAKNESSES
Completley addresses the consumer market
Appeals to the current Trends
Attracts to the up and coming cell phone users.
Cost of research and development to design a new
product.
Competes with the already existent and ever
growing iPhone market
Could use the current Blackberry users who like
the original business use design
Market Penetration – Target the Canadian Market
In option three, RIM will focus its advertising on the homeland. They will push the patriotic
factor and target the Canadian market by increasing advertisement in hope to push the brand
name and help the Canadian economy along the way.
STRENGTHS
Encourages Canadians to support the Canadian
market.
Creates patriotism across the Nation
75% of Canadian residents have a cell phone.
WEAKNESSES
Cuts out the advancement in international sales.
Canada itself is not an overly large demographic to
market to.
Large scale advertising will be costly.
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CHOSEN SOLUTION BLACKBERRY
The option we have chosen is product development; combining buisness with leisure. This
option provides the least amount of risk, and possibly the most benefits. By focusing on
entertainment while still keeping that professional edge, BlackBerry is looking at obtaining a
huge new consumer market while still keeping their current customer base.
The first step would be to create new applications that balance class and fun, such as a wine
rolodex or a restaurant and club locator. This would appeal to someone who is looking to
impress their clients, or their dates. BlackBerry could also co-brand with a popular golf
manufactuer, like Titleist, to make a limited edition phone. It would come with apps that offer
layouts of all the golf courses in your area and tips on each one. It would send you weekly
weather reports for optimal golf days. The phone could also include an app which used an
accelerometer (like the Wii controller) so you could swing your phone like you would a club, and
it would offer you tips to improve your swing based on the weight used and direction you aimed.
This promotion could also be paired with discounts on Titleist products to owners of the phone
and a sleek, new, golf orientated design to the phone. This would be attractive to all golfers both
for professional and recreational purposes, where there is also a large female market as well.
This new twist on the BlackBerry also opens the door for a new marketing campaign. New ads
would feature young people surrounded by class, luxury and glamour while still touching
professional. It would show a suave men and women using the new apps to impress others in
posh clubs and classy restaurants. Have a woman using the club locator app to find a hot new
club and having a guy use the wine rolodex to order the same woman a fine wine. The ads would
appeal to both sexes; to anyone who values social standing, success and pleasure.
This route will undoubtedly bring success, for it will inspire people buying their Smartphones
based on social reasons to view the Blackberry as the most stylish choice, and it will reflect on
the iPhone as being childish without being direct about it. Current customers will stay loyal
because it enhances some of the finer things about being a business professional. It is important
that these ads empower woman equally to men as well, since their market is growing steadily.
By choosing the business leisure phone, BlackBerry will be giving itself the extra edge and
excitement it needs to appeal to the consumer market.
PAGE 8 OF 10
PRODUCT DEVELOPMENT BLACKBERRY
Product Development Process:
Create a business – leisure phone, expanding on the consumer applications
Explore potential customers, through surveys and focus groups world wide
From the gathered information create a prototype
Testing product by giving free demo models to business people
Advertising Campaign; magazine, micromecials, internet, and TV ads
Quarterly product review and ongoing modifications
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REFERENCES
(Motion, September 24, 2009) http://finance.yahoo.com/news/Research-In-Motion-Reports-iw1951190285.html?x=0&.v=1
(theenglishteacher on February 14th, 2009) http://theenglishteacheronline.com/tag/teachers/
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