The Wireless Communication Industry - Essay Example

? Research in Motion: A Case Study 30 Case Study on Research in Motion Introduction Research in Motion (RIM) came into existence in 1984 with a focus on developing hardware and software for wireless data communication. Soon, the company established its stronghold in producing wireless two-way smart data communication devices. RIM started producing BlackBerry by weaving all the three components together – hardware, software, and service to offer wireless email messaging. The product functionality was superb for new users as well but with the entry of Apple’s iPhone in the market, doubts over the RIM stronghold have been expressed. Problem Definition With the introduction of Apple’s iPhone in the mobile industry, it was expected that market for BlackBerry would be hit severely. Common perception was that market for mobile phones was already over-congested and any new entry could have debilitating effect on Research in Motion (RIM). Jim Balsillie, the co-CEO of RIM, also felt the emerging challenge to RIM from the new technology convergence and started planning a strategy to position his company for capturing maximum market coverage (Carayannopoulos, 2012). Jim Balsillie considered iPhone as “one more entrant into an already very busy space.” RIM’s enterprise market was the target of competitors. Balsillie wanted to pursue a strategy the like of water rafting, with the purpose of attaining, “every last dollar [he could] possibly get” in revenue but also safeguarding his ship from the “rocks” lying in the way and place the company securely (Carayannopoulos, 2012, p. 1). According to Donnelly (2011) RIM’s stay in the market could be doubtful with the arrival of other strong entrants in the marketplace. Consumers have Apple’s iPad and the latest release iPad2. Another competitor, Cisco, is also fully prepared with its integrated release of Cius tablet, offering tough competition to RIM. Problem Analysis The consumer market for RIM’s Blackberry products, namely the Blackberry “Pearl” and the Blackberry “Curve”, according to market analysts, was an intelligent move, as it would offer RIM vast consumer market full of potential customers; also the enterprise market was comparatively smaller than the consumer market. It was definite, as observed by market analysts that with the advancement in technology and increase in competition, challenges before the RIM management in the context of realizing sales targets were genuine (Carayannopoulos, 2012). Global wireless market had been showing seamless growth and subscribers were sure to cross the 3 billion mark by the end of 2007. Wireless device users were divided in different market segments of consumer using the mobile instrument for personal use, the prosumer using it for both business and personal use, and the enterprise segment where the device was wholesomely purchased for employee use. Market was already overcrowded with players such as Nokia and Motorola possessing comprehensive brand image, financial strength, experience, and network carrier collaborations worldwide. Their handsets were cost-competitive but were deficient in some sections such as data transmission and players like Nokia had collaborations with other partners for embedding email feature in their devices (Carayannopoulos, 2012). iPhone with dimensions of 4.5 by 2.4 by .46 was available to users with one large touch-screen functionality. Various features of iPhone such as email, camera, videos, music, and internet, according to analysts, set its class distinctly in multimedia. All reviews although were not as promising, as the whole web pages could be seen as on a computer and downloading was slack due to the sluggish speed of the AT & T’s network. There were other crucial business add-on features missing such as Microsoft Office/Exchange enabling both voice and non-voice data exchange and downloading over the internet. Balsillie finds Apple’s strategy of compelling subscribers to visit Apple’s iTunes music stores for activating the phones in stead of the network carriers but consumers’ response to the release of the iPhone had compelled the service providers such as Orange, T-Mobile, and Vodafone to bid enthusiastically for European iPhone rights (Carayannopoulos, 2012). Considering the competitive environment of the RIM’s products from its software licensing to software firms the like of Good Technologies, Microsoft, and Danger, Inc. the marketplace for various carriers and software companies, according to analysts, could be threatening, as in the case of Microsoft, if it considers entering the wireless communication market (Carayannopoulos, 2012). According to Donnelly (2011) RIM’s management is not worried from the arrival of more players and perceives their firm to remain a small competitor only but the long-term possibility of facing competition without endangering the niche market area seems to be a far-fetched concept. Another co-chief, Mike Lazaridis, is also fully optimistic about the security concern for BlackBerry. Perhaps, they have resolved security issues related to operating system by acquiring QNX and using one of their operating systems on the RIM tablet. This acquisition can help RIM in maintaining its market position, as presented from this new possibility. Problem Recommendations It is recommended that RIM takes the advantage to turn the tide in its favor by re-establishing its position once again as the leading player by presenting to industrial system companies a vastly employed device equipped with a pre-integrated operating system. A RIM PlayBook could be the lead on-board car GUI or the interface used by System Administrators to control kernels as required by developers (Donnelly, 2011). The opportunity has been possible only because of the acquisition of QNX that has a robust customer base. The acquisition was well-timed exactly before the release of the source code to the OS by QNX. Hopefully, RIM gets the leverage from this opportunity (Donnelly, 2011). Conclusion The wireless communication industry is quite dynamic where changes in technology are recurrent to the extent that innovations happen at short intervals. This should not imply doomsday for a company like RIM and its product range. The confidence shown by Jim Balsillie, the co-CEO of RIM, to raft the tough waters and save the ship from rocks is ideally the right and positive approach. Strategic acquisitions the like RIM made by acquiring QNX has enabled RIM to successfully execute its strategy so that sales target are achieved without any hitch on security issues. Now, the PlayBook tablet can run on a proprietary Unix style OS structured by QNX but as stated above, hurdles such as the recent one with the entry of Apple’s iPhone in the marketplace will be happening more often in the wireless communication industry. The need is to use strategic tools tactically by keeping the focus on the short term and long term business objectives of the company. References Carayannopoulos, S. (2012). Case 8: Research in Motion – entering a new era. Section 6 Strategic Marketing Cases, Wilfrid Laurier University. Donnelly, G. (2011, April 14). Could RIM’s acquisition of QNX make BlackBerry PlayBook viable in corporate tablet market? 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