MMS 3 Group C

RIM - Blackberry MTDB’10 Group AIndustry analysis models23rd of March 2010

index1. What is Blackberry?2. Blue Ocean Strategy

3. SWOT4. Basic trends (8x)

5. Uncertainties (4x)6.Framework axes7. Framework (5x)

8. Questions!

Introduced in 1999 by RIMDesigned for business people

Connect mobile with, Exchange, Lotus Notes, Novell Groupwise & othersBlackberry Enterprise ServerSecure

What is Blackberry?

Blue Ocean Strategy

Before only cell phone and pagersNew technology developed

First mobile email devicePush email

SecureEnterprise segment

StrengthsUnique offering &

strategyWell designed softwarePowerful brandOffering Carrier

friendly

WeaknessesScalability & Global

coverageBlackbery architectureTotal cost of ownershipBusiness Model not

carrier friendlyThreatsTougher competitionNew technology

OpportunitiesExtend third party applicationDifferent offerings

SWOT Analysis

Scenario Analysis

Basic trends

1. Feature-rich device becomes standard

Camara3GWi-FiMusic playerGPS are standard

2. Location based & Augmented reality

3. App download increase

Year No of App storesBefore 2008 32008 82009 382010 till February 48

Year Revenue Downloads

2009 $4,23 2.5

2010 $6.67 4.5

2013 $29,47 21.6

4. Cloud-computing

5. Telco ARPU declines Data ARPU increases

6. Growth

7. Android & iPhone O.S.

Symbian is loosing market to new playersRIM will keep worldwide no. 2 positionAndroid grows quickly

7. Open-source

Uncertainties

1. Market players

2. 2. Consumer expectations

3. Technology

4. Infrastructure

framework

The axis

Y: Degree of convergenceX: No of players

Scenario framework

After the BoomFew companies drive innovationNo common standardsEnd-to-end integrating players ruleOpen platforms have advantageRevenue increase, convergence

The playgroundCommon standardsLow pricesInnovation is keySpecialized playersRevenue increase depends on adaption to convergence

Cost CuttingHigh competition, few playersLess innovationSurvival depends on efficiencySaturated marketProfits around 4-5%

Overcrowded garden pondPush for innovationHigh level of competitionDifferentiation by Niche marketsNot very profitableRisk of price warsConsolidation of players

1

3 4

2Low

High

Low

High

After the Boom

Warning bellsMarket highly receptive to new technologyMany companies entering & leavingNew technology like LBS and AR gain prominence in daily life

ScenarioFour main playersClosed vs. OpenHTC/GoogleBargaining power suppliers

StrategyFocus on consumer marketAlso focus on professional marketInnovateDigital HomeKeep platform closed to keep quality

Few playersHigh level of convergence

the Playground

Warning bellsMany players enteringEveryone makes profitHighly segmented market

ScenarioOpen source wins battle of standardsSeparation hardware, software, appsSpecializationHighly competitiveSuccess depends on ability to adapt to convergence

StrategyFocus on core marketIntegrated customized enterprise solutionsSell a service

Many playersHigh level of convergence

Cost cutting

Warning bellsCompanies can either spun-off or soldPromising technologies turn out to be a fadIndustry focus on cost efficiency

ScenarioMature marketLittle innovationFew players in the marketTough competition Phones become (fashion) statements

StrategyFocus on enterprise marketCustomized & standard productsSharing risk with customer

Few playersLow level of convergence

Overcrowded garden pond

Warning bellsHigh level of competitionPrice-warsSpecialization on niche segmentsConsolidation of players WINTELOKIA

ScenarioSmall marketFocus on nicheLow profitabilityPlayers with sufficient back up or other competitive advantage will survive

StrategyConsolidationRIMBMBuild on key capabilities

Many playersLow level of convergence

Questions?