Research in Motion's (RIM) Battle Scars

Research in Motion's (RIM) Battle Scars

About the Company

RIM has been consistently spending on research and development to enhance the product offering. R&D expenses were 6.8%, 6.5% and 6.2% of the revenues in 2011, 2010 and 2009 respectively. Comparatively, Apple's R&D expenditure as a percentage of its revenues for FY2010 was 2.7% and 3.1% in 2009. Sustained R&D expenditure will enable the company to maintain its competitive positioning. Additionally, converting the expenditure into revenues will enhance the top-line growth. RIM's limited attention has been paid to the effects of industry characteristics on the use of IT outsourcing, and the underdeveloped literature has revealed mixed results.

For instance, research has elucidated that the industrial intensity can have a positive, neutral, or negative effect on outsourcing usage. There is still a need for additional research to enhance our understanding of this area; companies like RIM must direct considerations into this area. In the subsequent sections of this report present an in depth analysis of the key strengths and opportunities for RIM, a high-tech Canadian company with extensive IT products and services. In particular, the paper investigates whether the company may move towards outsourcing as a viable option for business growth and sustainability.

Competitor Analysis

RIM faces competition from companies in the electronics and mobile industries. The following companies are the major competitors of Research In Motion Limited

Motorola, Inc.

Nokia Corporation

Samsung Electronics Co., Ltd.

Apple Inc.

Sony Ericsson Mobile Communications AB

HTC Corporation

LG Electronics, Inc.

Market Segmentation and Positioning Strategy

Market Segmentation, equivalent to the identification of customers, actual or potential, buying behavior is similar to a single offering. Product differentiation is the design of a significant difference to distinguish the goods / services company from the competition. And brand positioning, i.e. the way in which clients relate in your mind products and services that compete with each other. Differentiation decisions are made internally within the company looking to design for the product or service value proposition that for a selected market segment is significantly better than competitors (Aron, Clemons, Reddi, 2005, 37-55).

Positioning decisions are about what the company wants to happen in the minds of customers relative to that value proposition. However, the essential difference is that the brand positioning, as resolved in the public mind, is the result of product differentiation. And this result is not necessarily planned as the supplier. Operational decisions of product, price, place and promotion are all to emphasize the competitive advantage that has been chosen to provide customers with a specific value proposition (Aubert, Patry, Rivard, 2005, 9-28).

Blackberry's Target Market

In the case of individual consumer markets the main target market is formed by high-income professionals who need a portable device to coordinate their agendas and to communicate with his family and colleagues. The secondary group would consist of university undergraduate students and graduate students who need to organize your studies, your work and your personal calendar, access and input information from anywhere at any time and keep in touch with family and friends (Bharadwaj, 2000, ...