Research in Motion

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Group 1 Section A

Brief Company Overview

Research in Motion (RIM) Limited is a Canadian Telecommunication and wireless device company
best known as the developer of BlackBerry Smartphone, used by millions of people around the
world. The company also creates software for businesses and the operating system that allows the
BlackBerry Smartphone to provide mobile access to email, IM, apps, media files, the Internet and
more. Recently RIM announced long rumoured BlackBerry PlayBook tablet computer to be shipped
to customers in early 2011.

Competitive Analysis

Two major products of Apple facing competition from RIM are iPhone and iPad. While RIM’s
BlackBerry poses competition to Apple’s iPhone, RIM’s tablet PC Playbook is yet to be launched.
Apple targets its products towards common users and RIM focuses more on business users. The
advantage that Apple has is better OS, Stronger support system but RIM is more corporate friendly.

iPhone Vs BlackBerry

1. Apple Controls 23.3% of US Smartphone market whereas the figure is 55% for RIM
2. Apple’s global market share was 7% for 2008. Apples market share has grown to 13% in the
first half of 2009 whereas global market share for RIM was at 16% for 2008. The Blackberries
have grown market share to 19% in the first half of 2009.
3. The Apple brand is not as receptive towards business people. It does not have a strong
reputation such as the BlackBerry does. BlackBerry has better software and it integrates well
with other platforms. It has speedy e-mail provider and has coverage in many countries. Also
BlackBerry holds patents for the thumbwheel and QWERTY keyboard found on the device.
4. Apple is new to the smart phone business, but with its strong electronic history and
reputation, its sales and market share of the smart phone business are growing rapidly.
Apple tends to target its phones to people who seek for media. Also, Apple has stronger
foundation and capital to support its after-sale services. RIM is already an established player
in smart phone business. RIM has a strong customer base from professionals, whereas Apple
attracts many average users.
5. The prices for the new BlackBerry and new iPhones are very close, but Apple is willing to
drop iPhones’ price in order to increase its sale and market domination. If RIM follows, its
profit will reduce, and it does not have as many other products as Apple to compensate the
loss of profit.

iPad Vs Playbook

1. Slated to launch in 2011 BlackBerry Playbook is more business centric then the Ipad.
2. The features available with Playbook are in keeping with requirements of this business
market segment. The Playbook will have a 7-inch (18cm) screen with front and rear facing
cameras to enable video conferencing. Obviously this is designed to cater for the business
market who will view this as a key advantage over the iPad.
3. iPad screen size is 9-inch which gives it advantage of running more application on it.
Playbook enables multitasking which is not possible with iPad but it is soon expected to
come up with new OS which would support multi-tasking.
Group 1 Section A

4. Playbook does not have 3G capabilities unlike the iPad that comes in the two options, pay
monthly 3G or non-3G, however it will be able to establish a data connection by tethering to
a BlackBerry Smartphone.

Conclusion

RIM domination of the Smartphone market it practically invented has dimmed. Thanks to growing
competition from Apple and, more recently, Google, and a fast-changing market that no longer
values the BlackBerry’s core strengths as much as it once did. Given a choice between iPhone and
Blackberry and a significant shift has been observed towards iPhone. RIM’s future depends on its
return to its corporate roots, and its willingness to let go of being all things to all people.

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