MK100- Principles of Marketing
February 3, 2013
Research in Motion (RIM) - Blackberry in Decline
Week 4 Assignment #1
Blackberry Cell phones have been an established brand and product offering on a global scale by Research in Motion (RIM). Research in Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry® solution in 1999. BlackBerry products and services are used by millions of customers around the world to stay connected to the people and content that matter most throughout their day. Research In Motion Limited, (2013) RIM directly competes with several Smartphone companies like ...view middle of the document...
According to the US Census Bureau data of June 2012, RIM should continue to market their devices in the following marketing regions: the Northeast, Great Lakes, Southeast, Texas, and the Pacific Northwest. The data shows that within these regions, business account for 150,000 to 850,000 units respectfully. United States Census Bureau (June 2012). These areas contain high concentrations of businesses, which employ the consumers which RIM targets their Blackberry and other mobile devices too. Over time as other companies have introduced their product offerings within these areas, RIM has lost valuable market share with the business professional.
Since establishing themselves as a leader in the smartphone market since 2008, they have experienced a decline in market penetration, and decreased revenues globally. In 2009, RIM held 20% of the Smartphone market share. Since 2009, the struggling smartphone maker has seen its BlackBerry unit sales fall year-over-year for the last six consecutive quarters. Last quarter saw RIM ship only 6.9 million BlackBerry’s, a precipitous drop of more than 50% y-o-y and about 7% q-o-q. While sales in the developed markets of the U.S., Canada and U.K. continue to decline steeply. Trefis Team Contributor, (Jan.2013) RIM has sought to expand its appeal to consumers, but is has had trouble because their phones are not perceived to be as “sexy” as Apple’s iPhone or Google’s Android.
Apple’s iPhone and Google’s Android devices have penetrated the smartphone market by offering mobile devices and application platforms which appeal to all customers, including the business sector that was once dominated by RIM. Employees of businesses are demanding IPhone’s and Android devices over Blackberry’s. Struggling BlackBerry maker Research in Motion Ltd. said Thursday that it will cede most consumer markets after failing to compete with flashier touch-screen phones such as Apple's iPhone and models that run Google's Android software. Rob Gillies, Associated Press (Mar. 2012)
RIM continues to struggle with gaining valuable market share with mobile devices tailored to the business professional. RIM has lagged behind the competition in market knowledge, demographic factoring, and evolution of smartphone segmentation. Apple sold 37 million IPhone’s in the last three months of 2011-more than what RIM shipped in the past three quarters combined. Rob Gillies, Associated Press (Mar. 2012) The smartphone market has now essentially merged into one big customer market that is no longer segmented by the business/corporate user and the daily consumer.
Over the past several years, smartphone's have not only become primarily used by businesses consumers, but now all external environments are buying and requesting smartphone’s with the options that Apple and Google’s Android continue to offer the consumer. Apple is a strong competitor in the prosumer customer segment. ...