Research in Motion - Case Study Example

Research in Motion Case Study Executive Summary Research in Motion (RIM) is the of the company behind the worldrenowned telecommunication device that goes by the name BlackBerry. RIM is a Canadian based telecommunications company that has offered the world an indispensable brand for their professional and personal use. These devices revolutionized mobile telecommunications in the world due to their touted initial addictive nature. RIM’s success is cited to have ushered in the in the era of the smartphone industry in the world. A key factor to RIM’s success with their BlackBerry brand was the enhanced emailing capabilities that came with the mobile device. This aspect combined with its long battery life and significant security features made the device a must have mobile devise for business executives, government personnel and other professionals. RIM’s success is attributed to several key factors including its long standing commitment to security and reliability of the service. BlackBerry’s operating system, server system and its carrier infrastructure also add to the device’s superiority in the market. The device is also recommended for its smart features that are characterized by its ruggedness, simple graphical user interface and long battery life. Issues Success for RIM has not been without challenges posed by competitors like Nokia and Motorola, which the company has been able to outmaneuver through innovation and competent leadership. The primary issue or challenge facing RIM and its brand, BlackBerry is change. This is an aspect that been embodied by BlackBerry’s competitors most notably Apple’s iPhone and Samsung. The entrance if these two brands into the telecommunications industry led to the emergence of new platforms and devices. This has resulted in a drastic fall and decline for both of RIM’s share price and market share, an aspect that has been seen as an indicator of RIM’s declining relevance in the telecommunications sector. 1. A critical issue that needs addressing at RIM in order to get back on track to its former solid footing is transitioning to a new operating system. This is the only way that BlackBerry will be able to offer any substantial and significant competition to the current market leaders Google and Apple. BlackBerry needs to develop a new operating system to match the capabilities and features that are being provided by its competitors. 2. The second most important issue that needs to be addressed by Blackberry in order to get back into the ‘game’ is to review it top management strategies. In the final stages, RIM’s decline in the telecommunications industry was characterized by drastic erosion of management protocols. This led to massive resignations and loss of morale and direction for the company, which negatively impacted its attempts of delivering innovations to the market to counter their competitors’ advances. Issue 1 According to Watson (4), BlackBerry’s top leadership and management failed to address a potentially disruptive new trend. This is because they did not recognize the threat posed by the new smartphone revolution introduced by Apple and Google products. BlackBerry believed that these new introductions could not have a meaningful impact on their core business customers. This was because they lacked some key features that were considered essential in a smartphone like the QWERTY keyboard, which can be concluded to mean that BlackBerry dismissed these products as mere other consumer products. The emergence of these new products in the market eroded RIM’s market share to significant low levels. BlackBerry’s repeated failures to honor its pledges to deliver new products to the market that would match the new entrants’ capabilities spoiled BlackBerry’s reputation and credibility to their customers and clients (Watson 11). Blackberry’s operating system became redundant with the introduction of Apple’s iSO and Google’s Android operating systems, which provided broader functional and application capabilities. Apps were becoming increasingly important, and a part of people’s everyday life and the platform provided by BlackBerry’s operating system is not popular for app developers (Watson 7). In order to stay competitive in the market, BlackBerry needs to improve on its existing devices and developing a new operating system that is compatible with today’s market and consumer needs. Alternatives: 1. Providing a high Quality Operating System BlackBerry can turn its fortunes around by launching a next generation operating system that is cited in its intended QNX Bold. This should be accompanied by sticking to its core competencies of delivering products that are luxurious, comfortable under the influence of BlackBerry’s trademark form factor. 2. Launch a functional and Complementary PlayBook The complementary aspect of Blackberry’s PlayBook can be explained in the sense that it is the only tablet that has a 7-inch screen. There still lies potential in this device and making improvements by giving it more memory and added app functionality can be the way forward. 3. Introduce an Application (App) Platform. Many app developers have been turned away by BlackBerry’s app browsing experience. Improving on this aspect could lead to RIM’s success in the app market, which is a significant aspect in today’s smartphone market. 4. Rim could Ally with other Market leaders in the Smartphone Industry. BlackBerry could ally with Google’s Android platform where the two could both benefits from each other’s advantages. BlackBerry has a strong presence in the enterprise market an aspect that Google’s Android has been unable to venture successfully. The combination of these company’s capabilities could see a new revolution in the smartphone industry. Issue 2 The rift between the two top leaders at RIM can be attributed to BlackBerry’s plunge from being a market leader to a struggling telecommunications company. The steady loss of credibility by its leaders has been attributed to RIM’s decline in market share and consumer confidence. RIM exacerbated this situation by its top leadership and management appearing to be out of touch by maintaining an arrogant and dismissive tone towards their competitors. Strong leadership contributed to BlackBerry’s astute performance and a deviation from these core principles in management have seen RIM lose on all major fronts where it was initially a market leader and a force to reckon with (Watson 13). Employee confidence and morale were degraded by the disunity by the leadership at RIM, which reflected in the products that they delivered to the market. The tight-knit culture at RIM began to disintegrate due to the lack of clear and focused leadership at the top. Jim Balsillie’s and Mike Lazaridis’ numerous conflicts led to their growing apart, which is a key factor that plagued RIM and instigated its management problems. This was compounded by the resignation of Conlee who was an experienced competent and skilled leader and corporate manager. Conlee was gifted with experience, and he was able to successfully manage the top most leadership at RIM, which enables the company function seamlessly. RIM needs new approaches in its leadership and management strategies that are based on integrating RIM’s core principles and values with today’s market needs and consumer demands and trends. Alternatives: 1. Privatization RIM is cited to be advanced stages of negotiating a sale of its shares to a majority shareholder, which will see the company become a private company. This could be what the company needs in order to take it away from the public limelight that publicly traded companies attract. This will the company much needed time and space for re-strategizing on various fronts of its operations. 2. Acquisition and Mergers (A&M) RIM also has the option of selling the company to another technology company like Google or Microsoft that can utilize RIM’s advances to further the smartphone industry. 3. Embrace Change The key to BlackBerry’s turnaround lies in innovation and bold innovation as characterized by the competition that almost put them out of business. The resignation of RIM’s founders to directorship positions in the company means that the new leaders at RIM should promote innovation and discovery. A clear and directed leadership platform at BlackBerry will ensure that the company regains its former glory in the telecommunications industry. Conclusion The renaming of RIM to BlackBerry is a sign of a fresh start, and there is potential in re-inventing itself. This will largely depend on its leadership and management strategies. The execution of new strategies, while at the same time, adhering to the company’s core founding competencies will see the company succeed in regaining in relevance in the industry. Work Cited Watson, T. Leadership at research in Motion. Richard Ivey School of Business Foundation. Version: 2013-08-23. Read More