blackberry case study analysis
DESCRIPTION
Its a case study analysis of RIL(Blackberry).Analysis was carried out by authors which fetched prizes in esteemed competitions.TRANSCRIPT
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PRIZE WINNING CASE STUDY ANALYSIS
CHERISHINGBLACKBERRY
Dr.Dinesh ShendeMr.Swapnil Jadhav
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EXECUTIVE SUMMARYBLACKBERRY: A STORY OF PEOPLE WHO DREAMT AND LEARNT
Lazaridis, a dropped out of Waterloo university in 1984 along with a management consultant Balsillie gave a way to their dream of becoming a billionnaire by incorporating Research in Motion (RIM) in 1992.
RIM went public with listing on Toronto Stock exchange in 1997 and raised $ 115 Mn. from investors.
In 1999, introduced its first ever black berry brand E-Mail device
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Currently the most popular brand in in US Smart phone market
Every 3rd smart phone bought in US is Blackberry.
Strong new entrants like Dell, Acer, Motorola , etc are trying to shake the position of existing players like RIM, Apple, Nokia, Panasonic Etc.
Market now is consumer centric asking for vivid applications day in & day out.
RIM faces the challenge of sustaining its leadership in smart phone Business.
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ENVIRONMENTAL ANALYSIS
STRENGTH• pioneer in smart phones• 41 % market share (Q1 2009)•Strong customer base in US (3/5) and presence all over the world•Strong brand Equity •High skilled employees growing from 8000 to 12000
OPPORTUNITY• Entry into Price sensitive markets • Geographical expansion by mergers and acquisitions•To enter Tablet market where all other smart phone players are present
WEAKNESS• less Applications compare to Apple
•
THREATS• cut throat competition• rapid change in technology•Most dynamic consumer behavior•Extreme volatile market
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DRIVERS OF THE INDUSTRY
Technology New Applications Added features After sale service Market research for tracking constantly
changing needs. Long term relationship with suppliers
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MOBILE HANDSET INDUSTRY 2009
87
13
share
basic Phonessmart Phones
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MOBILE HANDSET INDUSTRY 2013
80
20
share
basic Phonessmart Phones
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ANALYSIS OF SMART PHONES INDUSTRY
41%
20%
28%
11%
Market share
RIMAppleNokiaPanasonic
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HAPPENINGS…
Nokia loosing ground Apple the biggest gainer Users preferring Google’s ‘Android’
operating system which received comparatively good reviews from techies
Nokia in tie up with Microsoft for operating systems
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Threat of Entry
high• Extremely attractive market • Saturation in Basic handset and PC Industry •
Buyers
High• low switching cost • high demand for technological
improvement• Differentiation is very high
Suppliers
High bargaining power of suppliers:
• High demand for applications soft wares• High Demand of Micro Processor and
operating system
Rivalry
Very High• Rivalry is very high owing
to very attractive market • Present Competition is
quality –based and not price based
• Company’s are trying to cater to constant changing needs of users.
SubstitutesHigh• competition is stiff among substitutes . Like,Tablets, Palmtops, laptops, etc.• cost effectiveness and user friendly apps are
the keys for substitutes.
PORTER’S FIVE FORCES
Smart Phone Industry
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FINANCIAL STRENGTH
3 years average EPS growth of 84% Revenue Growth of 77 % Market capitalisation increased 125%(from $ 96mn to $42 Bn) 56% market share in US of $12Bn market 41% market share in worldwide No. 1 fortune 500 list in 2009 as a fastest
growing co.
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PROBLEM IDENTIFICATION
Reducing market share (49% in 2006 to 41% in 2009 Q1)
Comparatively less Applications leading to switching by customers
Apple Apps – appr. 65,000 RIM – appr. 2000
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STRATEGIC ALTERNATIVES
Concentric diversification in Tablets ( Tabs )
Awarding software Entry into cost sensitive, less tech
savvy to create entry threat to apple Target different segments differently
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STRATEGIC SUGGESTIONS
Short term
Medium Term
Long Term
• Increase application base by starting with new portal-Let developers post their applications-Let ideas Flow-- give adequate remuneration and recognition even to new developers
• Penetrate the markets which are more price sensitive and less tech savvy.-Can replicate Wal-Mart T – Mobile contact model worldwide
• Exclusive strategic alliance with “facebook” which is third largest population in the world.
• Mergers and acquisition to consolidate extreme competitive market.
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QUESTION & ANSWERS