Dukes+A.+Strategy+Report

Dukes A TO: Proximity mobile team FROM: Andrew Dukes DATE: Feburary 23, 2010 SUBJECT: RIM strategy analysis

This is my RIM strategy analysis. RIM is one of the up and coming companies in the mobile market. Their Blackberry smartphones have been a popular choice for many. However, RIM must adjust some of the issues with their application market. Gen Y users will adopt these smartphones as their mobile devices if they offer the best features and applications.

**Profile ** RIM or Research in Motion Limited is a Canadian company which makes wireless devices. They are most widely know for their BlackBerry smartphones, which are sold abundantly around the world. The Blackberry was launched in 1999 and has been RIM's main phone since. RIM was founded in Waterloo, Canada in 1984 by Mike Larazaridis, who is the current CEO and president (Wikipedia 2009).

RIM's revenue comes from four sources:

   
 * 81% for selling Blackberry phones
 * 14% for providing service
 * 3% for maintaining and upgrading software (e.g. applications, business and web software)
 * 2% for other revenue.

RIM generated a total revenue of $ 15,164 million in 2009, up from $14,412 million in 2008. Also, they have around 32 million customers. RIM estimates that they will earn 18,484 million in 2010 (Reuters).

**Competitive Landscape ** The primary force driving competition in the smartphone market is the threat of substitute products. The relative quality of the I phone is favored among mobile users. One feature that makes the I phone unique is its application market. "RIM’s App World store has barely over 2,000 apps available for download, a drop in the bucket compared to the iPhone App Store’s 85,000+ apps" (Toktumia, 2009). Not only does RIM have fewer applications available, but they are generally more expensive.

Apple is the dominating company in the smartphone market. Many mobile users have switched to AT & T in order to have the I phone. However, other companies, like HTC, offer alternative smartphones to Verizon Wireless customers. This makes it easy for these customers to switch to HTC if they are displeased with RIM.

**RIM’s Strategy

RIM has proposed an Alliance program to address these issues. This program: **  
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Invites programming companies to design applications
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Attracts companies to invest in RIM
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Will introduce applications to the market faster than ever
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Will create a more accessible approach for companies to create Blackberry applications

**<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Gen-Y Implications **<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;"> RIM is a big player in the smartphone market, however other smartphones have greater capabilities as well as a more secure future. If RIM doesn't resolve their application issue, they may possibly fall behind in the mobile market. Therefore, RIM would not be best for Proximity clients. Clients should invest in another smartphone company to reach Gen Y through mobile ads.

=<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">References = <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">RIM (Research in Motion). (n.d.). Retrieved March 1, 2010, from www.wikipedia.org <span style="font-family: Arial,Helvetica,sans-serif; font-size: 120%;">//<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">

RIM. (n.d.). Retrieved March 1, 2010, from http://www.rim.com

Reuters, RIM, Inc. (2010, Febrerary 11). Retrieved March 1, 2010 from // <span style="font-family: Arial,Helvetica,sans-serif; font-size: 120%;"><span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">[] <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">

Toktumi. (2009, October 26). //<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Is the Blackberry Doomed? //<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;"> Retrieved March 1, 2010, from <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">[]