Tài liệu SM0495 BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT ppt

SM0495
BUSINESS ENVIRONMENT AND
STRATEGIC MANAGEMENT
Tutor: Dr. Gregory Ludwig
A MANAGEMENT REPORT OF RESEARCH IN
MOTION (RIM) LTD.
Words count: 3,296 words
PROGRAMME: MSc of Business with Hospitality and Tourism Management
Table of Contents
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CONTENTS
1. Introduction
1.1 Company overview – Research in Motion Ltd.
Research In Motion (RIM) Ltd. was incorporated in 1984 by Michael Lazaridis
and Douglas Fregin in Waterloo, Ontario, Canada under the Ontario Business
Corporations Act. RIM is engaged in the research, design, manufacture and
sale of wireless and is a global leader in wireless innovation, revolutionized
the mobile industry with the introduction of the BlackBerry solution in 1999.
(Euromonitor, 2011)
The company is now operating three strategic business units (SBUs) are:
smartphone, tablets, and apps and software (RIM, 2012). The company
recorded revenues till end of February in financial year 2011 was $19,907
million with the largest geographic market is US accounted by 39.3% of the
total revenues. In this geographical market, the financial year 2011, revenues
reached $7,823 million compare to the two biggest markets are UK ($2,218
million) and Canada ($1,408 million).
1.2 Strategic Business Unit – SBU of Research in Motion Ltd.
Johnson et al (2008) defined Strategic Business Unit (SBU) as a part of an
organization which has a different external market with other SBUs. RIM has

different SBUs such as services, software, smartphones, tablet, etc with the various
in targeted market and customers. Smartphones will be chosen as the core SBU for
this report because it’s the second pioneer strategic unit of RIM.
1.3 Smartphone Industry
Euromonitor (2012) stated that the mobile business intelligence has
suggested that handheld devices such as such as smartphone will be consumed
33% of business intelligence functionality by 2013 ad smartphone industry also be
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predicted grow critically in 2010 – 2015 which provide opportunities for the
manufacturer. However, according to Euromonitor (2011), there is a threat for
smartphone manufacturers like they have to reduce the cost in the growth stage
2012 – 2015 due to facing with the prolonged financial problems by the pre-paid
price with phone contacts.
1.4 Geographical Region
USA is the second largest geographical revenue of RIM. In 2010, the mobile
phone category grows by 13% in current value terms to reach US$13 billion and
volume sales of mobile phones are expected to increase by 5% over the forecast
period with growth exclusively emerging from the smartphone category (Euromonitor,
2011). Thus, USA is chosen as the market to analyse.

2. External analysis of the Smartphone Industry
Fiscal 2011 has the strong financial performance of exceptional growth and
accomplishment with consistent, further expansion of global market share. The
US is the largest geographical revenue mix of RIM with 39.3% along with the
record shipments of over 52 million BlackBerry Smartphones. Therefore, the
report will be narrowed to analysis the macro and micro environment of
smartphone industry in US region to examine the opportunities and threats within
the industry on the time frame is 5 years (2012 – 2017).
2.1 Analysis of the Macro-Environment – PESTEL Analysis
Appendix 1: PESTEL analysis

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To analyse the factors and trends of the macro environment, PESTEL
framework is considered as the good one which is also the traditional analytical tool
to investigate the factors affect on the outside organization in big scale and also to
identify and explain the future’s opportunities and threats of an industry. However,
this framework is considered that have some limitations as Burt et al (2006)
discussed that the six categories included in PESTEL such as the categories of
Political – Economic – Socio Cultural – Technological – Environment and Legal are
broad and not generic or specific applicable to the analysis of the environment
outside the organization. Furthermore, in personally, I find PESTEL simply as a list
making exercise, hard to predict future, outcome not really accurate, it should be
more than 6 categories and much date need to be consider, the requirements of
selecting the key issues from threats/ opportunities to conclude the analysis with the
continuously changing of macro – environment. The alternative frameworks for
PESTEL can be a scenario planning and SPENT according to the suggestion of
Campbell (2002).
The critical factors influence mostly on smartphone industry is technology,
with software and data service advances which is considered as the competitive
advantages in short term. At the moment, the 3G is the popular technology while the
4G is considered as a mix blessing for the smartphone manufacturers. As the
smartphone market matures in developed markets the 4G switchover is the likely
next revenue driver with hardware upgrades although cloud computing potentially
threatens post-sale revenue. (Euromonitor International, 2011)
4G is the main long term growth prospect for smartphones and a key value
sales driver in short run. However, the value of data processing and connectivity in
smartphones is likely to decline sharply as netbooks, tablet computers, and hybrid
devices become primary channels by which consumers’ access mobile online
content.
4G threatens the revenue stream from platform-specific content as increased
speeds will facilitate growth in mobile cloud computing, specifically browser-based,

platform-independent applications.
2.2 Analysis of the Micro-Environment – Porter Five Forces Analysis
Appendix 2: Porter Five Forces Analysis
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The Five Forces Framework was developed by Micheal Porter in 1985 has
used to assess and define the attractiveness of industries and sectors to identify
their potential for change and threats from outside the present set of competitors;
state of competition; competitive rivalry; shapes industry competitions. (McGahan,
2000; Porter, 1998).
However, the framework still contains some drawbacks as the framework has
strongly concerned about macro analysis but lack of emphasis on analysing specific
products – micro analysis, because of devised and developed in 1980s so it is
considered as out of date (Grundy, 2006). Personally, I find some limitations of the
framework as no dynamic changes; no statement on competition; no static for
comparison; out of date, thus, it will not give any solutions for problems.
Because of those limitations, in order to analyse the micro-environment, some
alternative frameworks could be used with different analytical tools such as: The
Toulmin Method (Toulmin, 1958); The Competitor Analysis (Chen, 1996); The Growth
Drivers and Porter’s strategic group analysis (Jeffs, 2010); and The Porter’s Generic
Strategies (Porter, 1980).
The smartphone industry is considered as the profitable and rapidly growing
industry. The threat of rivalry is the main threat to profitability and sustaining growth
of the manufacturer because of the numerous firms in this industry and the fact of
innovative technologies are often rapidly duplicated.
3. Internal analysis of RIM Ltd., Smartphone Division
3.1 Value Chain analysis
Appendix 3: Value Chain analysis
Value Chain framework was developed by Michael Porter in the book
‘Competitive Advantage: Creating and sustaining superior performance’ in 1985. The
framework is suggested as a tool to analyse and highlight the activities within and

around an organization deliver value, identify the value-added processes internally, a
sequential process of value-creating activities. Therefore, the company would
understand their building block competitive advantage and its sources in order to
contribute the strategic capabilities (Partovi, 1994; Porter, 1985 and Dess et al.,
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2007). Moreover, in personally, I find the Value Chain framework as the purpose of
identifying the strengths and weaknesses of the business.
However, as the two frameworks in external analysis, the Value Chain is also
claimed that it is short of the essential focus which is provided by the diversity of
sources of literature (Pitta and Laric, 2004). In personally, I find this framework is
quite out of date to apply to the current business environment in term of not relative
and reality to the business.
The alternative framework for the Value Chain could be Network Value
Analysis, Added Value Chain and the Resource Based View (McPhee and Wheeler,
2006).
The Value Chain system at RIM is strong in term of the large inbound and
outbound logistics network with the strong investment in marketing strategies and
the sales division. According to RIM annual report (2011), the Company’s sales and
marketing efforts include collaboration with strategic partners and distribution
channels, as well as its own supporting sales and marketing teams, to promote the
sale of its products and services. Furthermore, the company shipment across the
world of RIM in 2011 is 52 million Blackberry smartphone (Euromonitor International,
2011).
However, the Value Chain analysis also provided the two potential areas
could be considered as the blockages (as well as weaknesses) of RIM is Firm
Infrastructure and Technology Development. Despite of the global operations
infrastructure are needed to expanded associated to the increasing demand of
people over the world towards the Blackberry smartphone, but, the cost for maintain
the infrastructure is too expensive which leads to the high expenses. Moreover, at
the heart of BlackBerry’s problems lies its troubled transition to a new operating

system in order to compete with the Iphone and Google’s Android, the company has
had to rebuild its software from the ground up.
3.2 Resource Based View
Appendix 4: VRIO analysis
Barney (1991) purposed the aim of how to sustain the competitive advantages
from the capabilities for a long time. The RBV is a framework for gaining insights as
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to why some competitors are more profitable than others. Furthermore, RBV is also
encouraging the development strategies for individual business and help them to
understand whether the firms will gain competitive advantages, how sustainable
these competitive advantages are likely to be, and what the sources of these
competitive advantages to reveal how core competencies embedded in a firm can
help it exploit new product and market opportunities. (Dess et al, 2007; Barney,
2007)
The RBV as well as the VRIO framework is the powerful tool for analysing a
firm’s internal organizational strengths and weaknesses but still contains some
limitations. Three main limitations of this approach: the effect of unanticipated
changes in a firm’s environment; limited managerial effect on performance; and data
challenges associated with the unit of analysis (Dess et al, 2007; Lockett and
Thompson, 2001). Moreover, the RBV analysis fails to take into the high effect and
the new changing trends of the business environment to gain the competitive
survival advantage because it is more important than just focus on the sustainable
competitive advantage itself (Lockett and Thompson, 2001). In personally, I find that
the RBV is out of date and must focus on capabilities more than resources.
The alternative analysis for improving the Resource Based View analysis can
be the Dynamic Capabilities analysis.
In case of RIM, the company has many tangible and intangible resources
which are discussed through the VRIO analysis (Appendix 4). In tangible resources,
RIM has the strong manufacturing plants, global leader in innovation wireless,
technology. RIM is not just solely located in Canada but lease facilities throughout

America, Europe, and Asia which proves that RIM has stable financial sources to pay
for their incurred expenses. Besides, RIM with the fame and reputation, experiences
in wireless innovation and hardware, software production, RIM is prove itself as the
second largest smartphone manufacturing company in USA.
Additionally, intangible resources such experiences, the strong financial
performance, innovation in technology and strong research and development are
considered as the best knowledge for RIM to produce and develop the BlackBerry
products. Moreover, RIM success is largely dependent on its continuing ability to
identify, attract, develop, motivate and retain skilled employees, including members
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of its executive team even though the there is a problem in structure of top
management in fiscal year 2011 (RIM Fiscal Annual Financial Information, 2012).
Moreover, Barney (1991) stated that the firm’s culture, which is generally viewed as
a strong unique intangible resource. In RIM, Human Resource is the source for
creating a corporate culture and preserving and developing employees’ skills as RIM
was awarded Canada’s Most Admired Corporate Culture (RIM, 2009).
In conclusion, the intangible resource is likely more critical implication towards
the success of the company as strong threshold resources (expertise in skills and
innovation technology to manufacture a high quality smartphones, generation in
supporting the applications and services) which can contribute to the achievement of
competitive advantage. RIM has a strong corporate brand and reputation as a global
leader wireless innovation and the second largest smartphone providers in the world
which help it to neutralise the threats and utilize the opportunities to compete with
other competitors.
3.3 Dynamic Capabilities
Teece et al. (1997) posited the dynamic capabilities approach to address the gap
of the highly dynamic business environment challenged the original assumptions of
the RBV and dynamic capabilities are now considered to be an extension of the
RBV. Dynamic capabilities focus on the firm’s ability to face rapidly changing
environments, in order to create and renew resources, and change the resources

mix
However, like other frameworks, DCV still has its limitations. Collis (1994) stated
that DCV is not usually reliable sources for competitive advantages of the company.
Moreover, the relationship between knowledge acquisition and DCV sometimes not
clearly understandable (De Toni and Tonchia, 2003).
RIM has the core dynamic capability especially in relation to product research
and development (R&D). Technology base is the strong competitive advantage of the
company, thus, RIM invest in the R&D strategy seeks to provide broad market
applications for products derived from its technology base. As of March 3, 2012,
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RIM’s research and development team consisted of approximately 6,100 full time
employees. Research and development expense was approximately $1.6 billion in
fiscal 2012, compared to $1.4 billion in fiscal 2011. The development and support of
RIM’s products require several key areas of expertise within RIM to be closely
integrated. RIM has recruited and developed teams with expertise in these required
areas and the Company believes that the integration and focus of these teams
provides RIM with a significant competitive advantage (RIM, 2012).
3.4 Core Competencies
Core competencies are evaluated as the most critical factors to the success
or failure of the organization. Core competencies give firm the strategic capabilities
and competitive advantage which are not imitated by competitors. According to
Prahalad and Hamel (1990), core competencies are communication, involvement,
and a deep commitment to working across organizational boundaries, it involves
many levels of people and all functions. Moreover, core competencies are about
harmonizing streams of technology, also about the organization of work and delivery
value. In order to identify the potentially that the core competencies are created, it
might envision the future market and industry as well as stake them out ahead of the
competition (Thierauf, 2001). Moreover, the core competencies also gives firm the
strategic capabilities and competitive advantage to compete with others but cannot
apply to the SBU level.

In case of RIM, it has some key core competencies which are Research and
Development, Network Operations Centre and the core assets BlackBerry
Messenger.
Due to the strong Research and Development, RIM has create some success
factors as it states in the Annual Information Form 2011 and updates to the Fiscal
2012 Annual Financial Information: multi-network support; connectivity to enterprise
email and applications; connectivity to personal messaging, social networking,
multimedia and other applications; and access to third party applications.
Network Operation Centre (NOC) is a key aspect of competitive differentiation
among industry participants, RIM pioneered the use of a sophisticated multi-node
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centralized architecture responsible for the routing of message to and from devices.
The key benefits of NOC are message delivery reliability, network utilization
efficiency and security.
3.5 SWOT analysis
STRENGTHS WEAKNESSES
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Internal environment • Growing brand loyalty
together with strong
brand image and
recognition, financial
performance
• Strong Research and
Development
• Business relationship ad
partners (dependence
on a small customers
belong to business and
Government segments)
• Losing market share

OPPORTUNITIES THREATS
External environment • The rapidly innovation
technology and a rising
consumer expected for
speed, convenience and
attractive design in the
smartphones.
• Expanding portfolio and
applications
• Fastest growing company
in the world with the
innovation technology
• The threats of
substitutes are
medium/high, so, the
emerging technology for
tablets and other
portable computers will
cause the great threats
to the growth of
smartphones.
• Short life cycle due to
the rapidly changing and
duplicated technologies
• Declining in the average
selling price
4. Evaluation of possible future strategies for the company
4.1 Key strategic issues facing RIM in 2012:
The SWOT analysis which had mentioned in part 3.6 above highlights three
key issues influencing RIM’s future survival competitive strategy as:

• How can RIM adopt/develop a new operating system called QNX in
BlackBerry 10 to provide exceptional performance, high scalability and
support a better service and catch the trends of end-users’
expectations in the future?
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• How will RIM use its strengths to expand its leadership in the
Smartphone market and innovative technologies to get new products to
market continuously?
• How can RIM implement the cost reduction project to drive the lower-
price smartphone to gain the market share as a competitive
advantage?
The problems of RIM are service outage experienced user in Europe, the
Middle East, Africa and other parts of the world; and RIM has been slow to get new
products to market. These key strategic issues are orientated based on the high
threats of rivalry facing the company. In order of differentiating the product portfolios/
services and innovating technology while reducing the manufacturer costs to supply
the lower-price smartphone to stay strong in the industry but also reach the further
customers’ expectations whilst increasing profitability and market share.
4.2 Evaluation the strategy of launching BlackBerry 10 Platform unveiled
in May 2012
4.2.1 Strategic Logic
By launching BlackBerry 10 Platform, RIM implies the strategic logic focus
on product development strategy which is identified using Ansoff Matrix tool
(Ansoff, 1957). As the critical problems had been discussed in this report is
the failure service outage and slow to get new products to market by the delay
of launching BlackBerry 10 in fiscal year 2011. The question for RIM is how it
gains again the market share to survive in the smartphone market without the
survival and competitive capabilities and the launching of BlackBerry 10 is the
answer.
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The launching of BlackBerry 10 will address the new operating system
called QNX which RIM had acquired QNX software system in April 2010 to
apply the strengthen QNX penetration in the automotive market and foster
innovation for markets served by all parties (RIM Press Release, 2010). This
strategic move is looking at enhancing the user experience between
smartphones and in-vehicle audio and infotainment systems.
Besides, by using the Porter’s Generic Strategies, the cost leadership is
also considered as a good method for addressing the cost reduction project of
RIM aims to generate the lower-cost smartphone to target the broaden market
to increase the market share.
4.2.2 Strategy Evaluation
• Feasibility:
The main barrier to the launching new product with the well-prepared
operating system is whether the firm resources and capabilities of it is
utilised or not. As the strength of RIM is research and development as well
the strong financial performance status, and the successful acquisition
with QNX software systems in 2010. They are distinctive capabilities of
RIM and all obtained/ integrated in the company strategy.
Moreover, in term of cost cutting to producing the lower-price
smartphone, the manufacturing expenses/ research and development
have to be controlled with the strong financial status and RIM does has
that threshold capabilities to compete with others.
• Suitability
The strategy fits the changing external environment towards the lower-
price smartphone with the innovative technologies. With the introducing new
BlackBerry 10 supported by new operating system NQX will help the firm
prevent to duplicate in technology by competitors but also make good
improvements on the software problems to attract the customers and go over
their expectations with the QNX powerful multimedia features. Besides, the
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strategy also helps to avoid impending threat of strategic drift out of
smartphone industry.
• Acceptability
The leveraging of BlackBerry 10 platform will bring the changes to the
smartphone market of RIM by optimized to connect people, devices, content
and services. The new operating systems will attract the customers and
generate the excitement among them to drive them to new BlackBerry 10.
The shareholders of RIM seems to be relatively content with this launching
because it utilize the acquisition for NQX software systems to support the
delay launching of BlackBerry 10.
Moreover, in addition to delivering the BlackBerry 10 platform and
refocusing resources on RIM’s key opportunities will drive greater operational
performance through a variety of activities include of increased the
management accountability and process discipline. Besides, RIM also
consider to looking for partnerships, join ventures, licensing and other ways to
leverage RIM’s assets and maximize the value for its stakeholders by this
strategy
With the launching BlackBerry 10 platform of this strategy, it will
reinforce the competitive pressure in the international market as the
introduction for new lower tier service pricing trends and boost the market with
the higher mix of sales coming from entry level products.
5. Implementation of strategic change
Carroll and Hannan (2000) said that leaders could have influences to the success
or failure of an organization. The leader is responsible for the reliability and
accountabilities of organization’s performance. As the further problem of RIM is
failure of the top management structure, the company should fix this problem. The
leader is the one who has to clearly understand about the vision, mission and
business strategies of a firm based on its own culture and basic background built.
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Landrum et al. (2000) believed that the firm could be destroyed if its leader is

unethical.
RIM facing the new operational staff problem since it lost a crucial executive
Larry Conlee (Chief Operating Officer) retired in 1999. At first, RIM should review the
relationship between the managers and directors as Mike Lazaridis said that Mr
Lazaridis and Jim Balsillie will step down from their positions as co-chief executives
of the Canada firm, handing the reins to Thorsten Heins, one of its co-chief operating
officers. Mr Lazaridis and Balsillie will also relinquish their roles as co-chairmen of
RIM’s board (The Economist, 2012). Thus, the roles of chief executive and chairman
will be split. From now on, Lazaridis and Balsille would settle into their director roles,
they will walk a fine lineof their leadership legacy and maintaining the drive and
investment necessary to be productive board members.
The non-executive chairwoman, Barbara Stymiest is new to RIM board but she
takes a strong leadership position and Stymiest is responsible for setting strategy
and communicates with shareholders.
The innovation and bold strategy is considered as the best chance for successful
of RIM. Hence, Lazaridis and Balsille must support and nurture the changes within
RIM immediately by beginning with the changes already in position and roles.
Moreover, they also need to empower the new chairwoman and new chief executive
in term of making the roles and responsibilities clearly. The clearly message from
board members will encourage Heins and Stymiests to enact the change and
establish their own leadership style. The less complicated in decision making and
authority, the more successful the firm can gain with clear structure and
responsibilities of board management.
6. Conclusion
Research in Motion Ltd is a global leader in wireless innovation but also has the
fame for various types of products such as: BlackBerry smartphone, BlackBerry
tablets, software, hardware, etc. RIM in US is considered as the second largest
smartphone brand which is being loved of many people especially the youngster. By
providing the quality product with the best service such as the BlackBerry
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Messenger, BES (BlackBerry Enterprise Service), BIS (BlackBerry Internet Service).
The reputation of RIM is as high as the expectations were reached of customers.
With the sustainable and growing demand for the smartphone industry, RIM has
grabbed the opportunities to exploit all the potentially and abilities to be a leader and
grow stronger.
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APPENDICES
Appendix 1: PESTEL Analysis
• Economic:
As the recession of the world economy, the US economy also be affected. In the
third quarter of 2009, the US economy came out of recession but GDP contracted for
the year and real GDP grew 1.5% in 2011. The government continues to work on
several different fronts to strengthen the economy. Other initiatives involving
improvements in energy, infrastructure and technology development are also
underway, but these will have an impact only in the longer term. Income distribution
has become a serious problem. (Euromonitor, 2011)
• Technology:
The expansion of mobile communications into increased video and data content
will facilitate the expansion of 4G technology over the forecast period as mobile date
traffic will continue increasing. Therefore, capturing the 4G market early is a key to
long term success particularly in the high-end smartphone segment. Cloud
computing in line with growing mobile consumption of media, demand for cloud
computing solutions optimised for mobile devices is likely to grow. This has the
potential to see Dell Inc and Hewlett Packard Development Co LP become
significant players in mobile phones as both companies have been expanding
aggressively into cloud computing and mobile communication. On a boarder basis,
demand for mobile computing has the potential to make smartphones with larger 4”
to 5” screens increasingly popular. (Euromonitor International, 2011).
The US is a world leader in the early implementation of 4G networks and the
largest national 3G network in the world, ahead Japan. In the long term, it seems

likely that the consumer’s distinction between tablets and smartphones may become
blurred, with future devices boasting similar performance features (including the
ability to make video and audio calls) and high-speed connectivity to 4G networks.
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Appendix 2: Porter Five Forces Analysis
• Threats of the new entry: Low/Medium
In order to enter the market, it is very difficult to attain the necessary economies
of scale/scope, the new business is required the huge investment in manufacturing
plant and technologies. Besides, the cost of entry is increased to high because of the
requirements about product differentiation (in the form of the well-known brand
names of a few incumbent firms), cost advantages independent of scale (in the form
of innovative know how of some incumbent firms), and the government barriers to
entry (in the form of some tariff barriers).
• Bargaining power of supplier: Low/Medium
In this industry, the materials are not the critical one because they are available
widely in very competitive market. The most important one is engineering talent,
because this resource could be supplied in short term based on how the business
offers them the benefits/ rights to retain them to stay with the business. Moreover,
sometimes, the business finds itself competing for the services of the best
engineering talent.
• Bargaining power of buyers: High
There is no switching cost for the smartphone industry because of it is easy for
the consumers to change from this brand to others. The technologies for the
smartphone industry are now quite similar. Furthermore, there are many competitors
includes of famous brand names and also the most low cost manufacturers come
from China such as Ningbo Bird Co Ltd, Lenovo Group Ltd, and Amio Electronic Co
Ltd. (Euromonitor International, 2011).
• Threats of substitutes: Medium/High
The smartphone is designed likely as the combination for calling, entertaining,
social networking, and sharing information. With the development of technologies,

and the innovation in product line of every business, the tablet or Ipad/Ipod Touch
can be considered as the substitutes for smartphone in term of the same
technologies, operation systems and applications.
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• Intensity of competitive rivalry: High
There are numerous firms in this industry as well as the overall industry
growth has been not too fast. According to Euromonitor International (2011),
the biggest changes I the competitive environment on a global scale came
with the emergence of smartphones. The incumbent market leaders Nokia
Group and Motorola Inc were too slow to innovate compare to Apple Inc and
RIM Ltd in capitalising the consumer interest and market as smartphones
became mainstream. Furthermore, the truth of innovative technologies are
often rapidly duplicated suggests an ongoing high level of rivalry. (Barney,
2007).
Appendix 3: Value Chain Analysis
Primary Activities Analysis:
• Inbound Logistics:
RIM generally controls sourcing decisions for materials and services that are
incorporated into RIM products. Outsourced manufacturing partners are responsible
for transacting business on behalf of RIM with component suppliers, but RIM
generally negotiates pricing of these materials and services. Depending on market
conditions, RIM may order more or less of a particular material or service and
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attempts to source components from at least two suppliers with a view to avoiding
different types of supply disruption. Component availability and pricing of
components may also be affected by the volumes the Company generates,
compared to the volumes a competitor may require (RIM, 2012). Moreover, the
company relies on its suppliers to supply functional components and is exposed to
the risks that these suppliers will not supply components on a timely basis or of the
desired quality.

RIM has outsourced productions operations to Hungary and Mexico (Euromonitor
International, 2011). RIM outsources the majority of its manufacturing to specialized
global Electronic Manufacturing Services (EMS) companies who are positioned to
meet the volumes, scale, cost and quality requirements of the company. RIM strives
to reduce its risk and dependency on these companies by having various partners
located in key geographical locations, thereby increasing leverage on cost, quality
and operational performance. Access to each manufacturing facility is available upon
RIM’s demand, and these facilities are regularly audited by RIM personnel trained in
this function (RIM, 2012).
• Operation:
RIM was going to expand the manufacturing and logistics operations in other
countries such as Brazil, India and China in term of those countries are the most
exciting and fast growing mobile market (Euromonitor International, 2011; Economist
Times, 2008).
The Company’s corporate headquarters and new product introduction
manufacturing facilities are based in Waterloo. RIM’s operations are housed primarily
in two campus-style developments; the facilities include 25 buildings, 17 of which are
owned for a total square footage of 1,787,170 and eight of which are leased, for a
total square footage of 413,439. The central Waterloo campus houses engineering,
manufacturing as well as research and development groups. RIM’s corporate;
administration and finance operations are based out of the Company’s campus in
north Waterloo, consisting of four newly constructed buildings. Two owned facilities
based in nearby Cambridge totalling 736,853 square feet are used for various global
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logistics and repair services groups. Moreover, RIM also operates in USA & Latin
America, Europe, Middle East, Africa, Asia Pacific for sales, marketing, legal,
research and development, customer service operations and administrative activities
(RIM, 2012).
• Outbound Logistics:
RIM markets and sells its BlackBerry wireless solution primarily through global

wireless communications carriers (carrier partners) as well as through third party
distribution channels which distribute the solution to end users. RIM has a number of
carrier-focused business units that support the sales and marketing efforts of RIM’s
carrier partners through training, technical account management and sales and
marketing support. (RIM, 2012)
For distribution of personal and consumer applications, RIM provides wireless
carriers with the ability to distribute select applications to their customer base and
also provides BlackBerry App World as a direct storefront for BlackBerry customers.
For distribution and management of enterprise applications, RIM provides a suite
of tools and technologies within the BlackBerry Enterprise Server to enable secure
and managed provisioning of applications to enterprise employees. BlackBerry
Enterprise App World allows organizations to offer employees easy access to a
catalogue of trusted applications.
• Marketing and Sales:
RIM intends to maintain its position as a market leader in the enterprise market
through a variety of strategies including focused sales and marketing efforts, the
continued use of strategic alliances and relationships to promote the sale of its
products and services, as well as utilizing indirect sales and marketing teams. RIM
intends to expand its leadership through providing enterprise customers with new
tools such as BlackBerry Mobile Fusion and BlackBerry Balance. (RIM, 2012)
• Service:
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RIM use the Non-warranty Repair strategy to enhance and maintain the value of
the BlackBerry by RIM generates revenue from its repair and maintenance program
for BlackBerry smartphones that are returned to RIM by the carrier, the reseller, or
the customer for repair after the expiration of the contractual warranty period (RIM,
2012).
Appendix 4: VRIO Analysis
V-Value R-Rarity I-Imitability
RIM has a great deal as a

global leader in wireless
innovation.
RIM is able to sell their
BlackBerry devices to
over 200 carriers, which
can run on a multitude
networks.
Consumers have the
opportunities to diversify
their choices of
BlackBerry models.
The Verizon network has
the largest 3G network
enabling the ability of the
BlackBerry Storm to excel
in time sensitive materials
RIM’s software is
customizable for each
business, allowing a
complete package with the
BlackBerry provided to
employees
Other competitors offering
smartphones only have
one type of model.
Gaining contracts into their
carriers maybe costly for
competitors, allowing RIM
to have strong hold on
Verizon

RIM already built the
business relationship with
large enterprise, so, it is
harder for competitors to
enter. If a business choose
to switch to a different
smartphone provider, the
switching cost would be
high
Their competitors could
easily imitate BlackBerry’s
models.
P a g e | 24
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