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Why can't pioneering innovative companies sustain their first mover advantages - Essay Example

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Why can't pioneering innovative companies sustain their first mover advantages

The breakthrough product for this Canadian company has remained to be the BlackBerry (Sweeny 2009). However, the arrival of iPhone in the market has overturned everything for Research in Motion leaving the company struggling to cope with the fast follower’s challenge. Rivals such as Google and Apple which performed well in the market have led to a downward performance in the company’s stock prices. Apple first launched iPhone, a device which took a dominant position in the market and more so in the consumer segment and is now taking leads in the corporate market where BlackBerry’s were dominant....
That is, the company has recorded ups and downs of 15% over the last 3 years when it comes to its share prices. This is because of the existence of stiff competitors in the market competing for the same market share with Research in Motion Ltd. The ups and downs in the share prices of Research in Motion Ltd may also be attributed to consumption of its market share by the competitors and especially in the consumer market. The introduction of new and improved products in the market by the competitors has made BlackBerry’s less competitive making RIM Ltd loose its significant number of consumers. Source: http://www.bloomberg.com/quote/BB:CN/chart When the BlackBerry’s become less competitive, the stocks also become less competitive a situation which has led to the reduction in stock prices. The increased competition and a reduction in market share have led to a reduction in the total volume of stocks traded in each trading day. Analysts also attributed the drop in stock prices in the company to the increased prices of the new BlackBerry mobile phones, a price which is too high for the emerging markets. With the increased prices, the company has been having huge problems attracting customers away from Androids by Google and iPhone platforms by Apple Inc. Source: https://www.google.com/finance?cid=663276 2. First mover advantages of Research in Motion’s BlackBerry BlackBerry was the first brand to be introduced in the market with mobile email which was highly compatible with the corporate requirements. BlackBerry then become the market leader and has continued being the market leader. BlackBerry was the brand in the market to integrate mobile communication, corporate email and internet capabilities ...Show more

Summary

Research in Motion (RIM) is a leading manufacturer of wireless devices. The manufacture of first mover advantages enabled the company to emerge from an unknown small entrepreneurial firm into becoming a global force in the sector of wireless devices within a very short period of time…
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