In Motion Analysis - Research Paper Example

? Research In Motion Research In Motion BlackBerry maker Research In Motion plans to cut about 11 percent of its workforce as it struggles to keep pace with Apple and Google in the mobile market it once dominated. The job cuts, which were slightly deeper than some had expected, raised questions about whether lower costs alone would go very far in addressing RIM's lackluster financial performance or the steady erosion of its market share. RIM also announced changes among its top executives. It said one of its three chief operating officers, Don Morrison, would retire and the other two, Thorsten Heins and Jim Rowan, would take on additional responsibilities (Sharp, 2011) Research In Motion (RIM) is one of the biggest mobile phone manufacturers in the world. Based in Canada, RIM was founded by Mike Lazaridis, who is currently working with Jim Basille as the co-CEO of RIM. Before starting the manufacturing of blackberry smartphones, RIM was engaged in the development of wireless networks in Canada along with some other companies such as Ram Mobile Data Erickson etc. The introduction of blackberry phones gave RIM a big reputation in the global mobile phone market because the superior abilities of blackberry phones in sending and receiving emails. Even though RIM was very much popular in American region, the company started its global operations in 2009 only. Since then, it is trying to capture global mobile phone market from the other prominent players like Google, Nokia, Samsung, Apple etc. However, it is currently struggling to compete effectively with its competitors. The introduction of Apple’s iPhone series and Samsung’s Galaxy series caused several setbacks to the dreams of RIM. Even though RIM has immense growth potentials and opportunities in global markets, it needs to improve its ethical behaviors and decisions, corporate strategies, marketing strategies etc to stay in the market. Guidelines for ethical behaviors and decisions at RIM Time is running out for Canada's Research in Motion, to give the Indian government the means to track and read its secure email and instant messaging services that officials fear have the potential to be misused by militants and to create political instability. India says it wants realtime access to RIM's BlackBerry Enterprise Email and its Messenger services in a readable format. Security officials say the inability to monitor BlackBerry traffic undermines efforts to protect national security. RIM has so far said it cannot unscramble data of its enterprise customers because it does not possess the keys needed to do so. After several meetings, RIM proposed it could share the IP address of BlackBerry Enterprise Servers, and the PIN and IMEI numbers of BlackBerry mobiles. India says that is not enough because it doesn't provide access to mails (FACTBOX - Problems BlackBerry services face in India, 2010) The proposed solutions by RIM for solving the security related problems while using blackberry phones in India has not been solved fully yet. RIM is trying to convince the Indian authorities with the help of some simple modifications in its existing technologies rather than going for a complete change. Indian authorities on the other hand are not ready to accept RIM’s offers. It should be noted that other mobile phone companies are ready to obey whatever the security measures suggested by the Indian authorities and therefore India do not want to accept the offers of RIM. RIM should realize that the necessity to market blackberry pones in India is theirs rather than India’s. No country will sacrifice their security measures for introducing a foreign mobile phone in its territory. “Research In Motion (RIM) founder Mike Lazaridis ordered a BBC reporter to end an interview after he was asked about his problems with India and Middle Eastern countries over security issues” (BlackBerry chief ends BBC interview after India query, 2011). It is evident from the above example that RIM is not ready to accept its mistakes and dealing the issues emotionally rather than logically. According to David Sengupta (2010), “Just because the BlackBerry can be a tool for evil does not mean that its effectiveness should be compromised for the rest of the world. If some governments can’t live with that, they should go ahead with their bans” (Sengupta, 2010). The above argument seems to be illogical. Security is a big issue for most of the countries especially after the 9/11 incident. Nobody wants to dilute their security measures for enjoying the facilities of an advanced device such as blackberry. RIM should try to make corrections in their decisions and ethical behaviors instead of forcing other countries to accept their technologies as it is. Comprehensive growth matrix for RIM Chris McDonald (2011) has pointed out that “RIM has been under pressure to split the role of CEO and chair, if not to find new leadership altogether. Splitting the role of CEO and chair would be an awfully good start” (McDonald, 2011). It should be noted that in most of the big organizations, the posts of CEO and chairman are handled by the same people. In other words, keeping the two roles of CEO and Chairman could be a standard practice; but it need not be a good practice from some organizations. Even though, RIM has two co-CEO’s, it is difficult for them to handle both the posts successfully at the same time. For example, a full time chairman can handle the board meetings successfully whereas a full time CEO can handle the day to day operations of the organization successfully. If the same person holds both the posts at the same time, he won’t be able to succeed in either of his profession. Moreover, RIM CEO’s are getting aged and it is necessary for RIM to cultivate some fresh youthful energy at the top in order to compete effectively with its competitors. India and China are the most heavily populated countries in the world. Moreover, these two countries are developing much rapidly than any other countries in the world. Many people believe that China would become the number one economic power in the world within a decade whereas many other are saying that India will become a superpower in near future itself. It should be noted that President Obama has recently visited India and other Asian countries in order to increase America’s commercial tie up with the Asian countries. In short, Asia is developing rapidly and the global wealth is slowly transferring from American-European region to Asia at present. Under such circumstances, RIM cannot stay away from expanding their market share in Asian region. RIM should leave its adamant arguments to protect its existing technologies and it should develop technologies feasible for the requirements of the countries like India, China and Middle East. Many Asians are currently working in Canada and RIM can utilize their services for realizing more about the Asian region and to expand their business to this emerging region. It is easy for RIM to establish business units in America or Europe because of the cultural similarities; however, Asia is entirely different region for Rim and it should develop proper HRM strategies to run their business successfully in this region. Blackberry is currently holding only the third place in the mobile phone operating system market; behind iPhone and Android which hold first and second spot respectively. Blackberry has functional advantage over its competitors; however it fails to exploit it with the help of suitable advertising and sales promotion activities. “RIM should focus on its BlackBerry Messenger (BBM) application, which integrates various communication systems, such as instant messaging, text messages, e-mail and phone calls” (Surrounded by Rivals, Can Research in Motion -- and the BlackBerry -- Prove That It's Hip to be Square?, 2010). Still blackberry has superior functionality than its competitors in handling emails and messenger services. However, blackberry should substantiate this ability with other features to make it more acceptable to the customers. Evaluation of growth opportunities for RIM Even though the growth opportunities for Rim are not so good at present, it can still regain its supremacy if concentrate more on changing some of its traditional business concepts. As mentioned earlier, RIM should be ready to modify its technologies to suit the needs of Asian markets, instead of keeping an adamant attitude with respect to technology changes. It should be noted that mobile phone market is facing stiff challenges at present because of the ongoing recession. Asia is the only region which escaped with fewer injuries in this recession period. So, RIM should shift attention more towards Asian market. Google and Apple are some of the companies which are raising stiff challenges to RIM. Apple is currently the second biggest and most valuable technology company in the world and therefore their products are always accepted with both hands by the customers. The case of Google is also not an exception. “Cheaper Google phones are making inroads in Latin America, Asia and Europe, threatening the popularity of Black-Berry models such as the Curve”(Miller, 2011). In short, RIM needs a revolutionary product now to compete effectively with the products of competitors. It should be noted that Apple grabbed the smartphone market because of their innovative iPhone series products. iPhone 5 is about to enter the global markets. Same way, Samsung is going to introduce the 3d version of its revolutionary Galaxy S2 product series. RIM needs a product which can beat both the galaxy and iPhone to regain its supremacy in the mobile phone market. Research in Motion (RIM) is in big trouble. Not because of the Apple (AAPL) iPhone and iPad or Google (GOOG) Android. RIM’s problem is its own attitude toward the rest of the world, as exemplified by its co-CEOs. And that’s enough to lose the market by trumping even the best product strategy, let alone one distinctly off because of that very attitude (Sherman, 2011) Rim is facing severe management problems at present at the top level. A complete restructuring is necessary both at the top and middle levels of RIM’s organizational structure. It should be noted that attitude of the top executives of RIM is not so positive and it is difficult for the current CEO’s to lead Rim towards prosperity with this attitude. Conclusions Research in Motion (RIM) is in big trouble at present because of the stiff competition from companies like Apple, Google, Nokia, Samsung etc. It already lost its dominance in most of the markets and currently trying hard to stay in the market. RIM is not ready to make any changes in its technologies to make it suitable to the Asian markets and their entry in India, China and Middle East seems to be in big jeopardy. The current organizational structure and the adamant nature of its CEO’s are not helping RIM much for regaining its lost place in the market. RIM should undergo a through restructuring process and it needs to develop a revolutionary product to compete effectively in the market. References 1. BlackBerry chief ends BBC interview after India query (2011). Retrieved from http://articles.timesofindia.indiatimes.com/2011-04-14/india/29416764_1_blackberry-maker-blackberry-messenger-playbook 2. FACTBOX - Problems BlackBerry services face in India, (2010). Retrieved from http://in.reuters.com/article/2010/08/26/idINIndia-51083220100826 3. McDonald C (2011). Splitting RIM's CEO and chair. Retrieved from http://www.canadianbusiness.com/blog/business_ethics/31123--splitting-rim-s-ceo-and-chair 4. Miller H. (2011). RIM shedding 2,000 jobs as sales slow. Retrieved from http://www.edmontonjournal.com/business/shedding+jobs+sales+slow/5158502/story.html 5. Sengupta D. (2010). BlackBerry Bans: A Question of Business, or Ethics? Retrieved from http://ferris.com/2010/08/09/blackberry-bans-a-question-of-business-or-ethics/ 6. Surrounded by Rivals, Can Research in Motion -- and the BlackBerry -- Prove That It's Hip to be Square? (2010). Retrieved from http://knowledge.wharton.upenn.edu/article.cfm?articleid=2650 7. Sherman E. (2011). RIM’s Co-CEOs Have a Losing Attitude. Retrieved from http://www.bnet.com/blog/technology-business/rims-co-ceos-have-a-losing-attitude/10026?tag=content;drawer-container 8. Sharp A. (2011). RIM adjusts to new reality by slashing 2,000 jobs. Reuters. Mon Jul 25, 2011. Retrieved from http://www.reuters.com/article/2011/07/25/us-rim-idUSTRE76O1PK20110725 Read More