Case Study ( Research in Motion (RIM)
Friday May 5, 2011
I. Summary of the Facts
• Research in Motion (RIM) is a multi-award-winning company that designs and produces hardware, software, and service solutions for wireless communications used by worldwide business and consumer markets (Case, 1).
• RIM is a Waterloo-based company founded in 1984 by two University of Waterloo engineering students, Mike Lazaridis and Douglas Fregin. Today, Mike Lazaridis and Jim Balsillie, who joined the company in 1992, share the leadership role in the company as co-CEOs (Case, 1).
• The first BlackBerry device came to market in 1999 ...view middle of the document...
Lazaridis donated $100 million to establish a world-class think-tank, the Perimeter Institute for Theoretical Physics, in Waterloo. He has also donated $50 million to the University of Waterloo, to help create the Institute for Quantum Computing”. This evidently reveals that RIM’s CEOs believe that in order to contribute worldwide, they must first be able to contribute completely to their own society in which they rooted from, in this case, Waterloo. Through these social contributions and interactions RIM has made, it appears that the CEOs are attempting to lean more from the socioeconomic view into a virtuous circle perspective on social responsibility as there is evident growth in financial performance for the organization which can eventually lead to additional social responsible actions for the future.
The future looks promising for RIM as they have many products being released as of late, allowing for a variety of choice among consumers on which ones to purchase for themselves or their businesses. However, with these numerous high-quality products being released and already in the market, such as selective Blackberries and the BlackBerry Playbook (see Figure 1), revenues on each product may possibly not meet the expectations of RIM as explained through a Toronto Star article, ‘“They're not seeing much demand for their high-end products because they've got so many new ones coming out and all of the competitive issues aren't getting any easier,” Robison said from San Francisco’ (Young). A point this part of the article points out is that competition is not getting any easier as companies such as Apple Inc. and Samsung have both been booming as of late, releasing high-quality devices, including touch screen tablets. With these two competitors releasing similar products to RIM, competition in the wireless innovation business market will absolutely become tougher. However, with the wide range of products RIM is releasing as of late with an apparent new operating system, it is very probable that RIM will maintain gaining higher revenues than their competitors (to see comparison of Apple Inc., Samsung, and RIM, see Figure 2).
In order for a business to be successful in the business world, they need to stand out over competitors in their division, a competitive advantage. RIM’s competitive advantage is clearly evident as BlackBerry Messenger (BBM), an instant messaging tool for BlackBerry users to contact with one another, no matter where they are in the world. Through commercials and word-of-mouth, almost every individual has knowledge of BBM, whether they have a BlackBerry or not, which makes this competitive advantage absolutely successfully. Recently, an instant messaging application called Live Profile was created for individuals with any type of smartphone or android phone to contact with one another; however, in my opinion as a BlackBerry user, the features on the application do not appear much appealing or run as fast as...