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Why can’t pioneering innovative companies sustain their first mover advantages? A case analysis of Research in Motion.
Pages 11 (2761 words)
Research in Motion, now conducting business under the name Blackberry, is a Canadian-based telecommunications company that experienced significant industry laurels for its innovative launch of the Blackberry branded tablets and smartphones.
Since the introduction on the market of the Blackberry 850, recurrent product evolutions and new innovation developments such as the Blackberry Pearl continued to find market favour with mass market consumers and corporate buyers alike. The Blackberry was the first device of its kind on the market, thus giving Research in Motion significant competitive and profit advantages. Porter (2011) identifies that a business’ position can be weakened when there are substitute products on the market. However, being a true innovator in wireless handheld devices, until 2007 there were virtually no comparable products in the mobile market, thus giving RIM significant market power. However, in 2007, Apple Inc. launched its own wireless device innovation, the iPhone, which was comparable if not superior to Blackberry products. This led to the development of the Blackberry Storm, a competitive product offering designed to outperform Apple’s first innovative smartphone launch. The Storm, though, received considerable negative publicity with dissatisfied consumers stemming from problems connecting to AT&T’s 3G network (Phone Arena 2009). ...
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