Harvard Case - Research In Motion: The Mobile OS Platform War
"Research In Motion: The Mobile OS Platform War" Harvard business case study is written by Alan MacCormack, Brian Dunn, Chris F. Kemerer. It deals with the challenges in the field of General Management. The case study is 22 page(s) long and it was first published on : Jul 16, 2012
At Fern Fort University, we recommend that Research In Motion (RIM) take a multi-pronged approach to address its declining market share and regain its competitive edge in the mobile OS platform war. This approach involves a strategic shift towards innovation, a focus on emerging markets, and a robust change management strategy to adapt to the rapidly evolving mobile landscape.
2. Background
This case study examines the challenges faced by Research In Motion (RIM), the manufacturer of the popular BlackBerry smartphone, as it grappled with the rise of Apple's iOS and Google's Android operating systems. RIM, once a dominant player in the mobile market, found itself struggling to keep pace with the rapid innovation and user adoption of these new platforms. The case highlights the company's internal struggles, including its reluctance to embrace change, its rigid organizational culture, and its inability to adapt to the evolving demands of the mobile market.
The main protagonists of the case are:
- Mike Lazaridis and Jim Balsillie: Co-CEOs of RIM, who spearheaded the company's initial success but struggled to navigate the changing market dynamics.
- The RIM Board of Directors: Faced with the challenge of balancing the company's legacy with the need for radical change.
- RIM's employees: A loyal and skilled workforce who were initially resistant to change, but ultimately faced the consequences of the company's declining fortunes.
3. Analysis of the Case Study
The case study can be analyzed through the lens of several frameworks:
a) Porter's Five Forces:
- Threat of New Entrants: High, with the emergence of new mobile operating systems and device manufacturers.
- Bargaining Power of Buyers: High, as consumers have a wide range of choices and are increasingly demanding in terms of features and functionality.
- Bargaining Power of Suppliers: Moderate, as RIM relies on a network of component suppliers, but has some leverage due to its volume purchases.
- Threat of Substitutes: High, as alternative communication and computing devices, such as tablets and laptops, pose a threat to the smartphone market.
- Competitive Rivalry: Intense, with fierce competition among established players like Apple, Google, and Microsoft, as well as emerging players from China and other regions.
b) SWOT Analysis:
Strengths:
- Strong brand recognition and established customer base.
- Secure and reliable messaging platform.
- Expertise in enterprise mobility solutions.
- Strong financial position.
Weaknesses:
- Inflexible and slow decision-making processes.
- Resistance to change and innovation.
- Limited app ecosystem compared to competitors.
- Lack of a compelling user experience.
Opportunities:
- Emerging markets with high growth potential.
- Expanding enterprise mobility solutions.
- Development of new and innovative technologies.
- Focus on user experience and app development.
Threats:
- Intense competition from Apple, Google, and other players.
- Rapid technological advancements and changing consumer preferences.
- Security vulnerabilities and privacy concerns.
- Economic and political instability in emerging markets.
c) Strategic Analysis:
RIM's initial success was based on its first-mover advantage in the mobile messaging market. However, the company failed to adapt its corporate strategy to the evolving mobile landscape. Its innovation management processes were slow and bureaucratic, leading to a lack of competitive advantage in terms of features, functionality, and user experience.
The company's organizational culture was deeply rooted in its past successes, which made it resistant to change. This organizational behavior hindered its ability to respond effectively to the challenges posed by its competitors.
4. Recommendations
RIM needs to implement a comprehensive turnaround strategy that addresses its weaknesses and capitalizes on its remaining strengths. This strategy should include the following elements:
a) Embrace Innovation and Technology:
- Invest in research and development: Develop a dedicated innovation team to explore new technologies and user experiences.
- Partner with technology startups: Collaborate with innovative companies to access cutting-edge technologies and solutions.
- Embrace open platforms: Adopt open source technologies and platforms to foster a more vibrant app ecosystem.
- Develop a user-centric approach: Prioritize user experience and design intuitive and engaging interfaces.
b) Expand into Emerging Markets:
- Tailor products and services: Develop localized versions of its products and services to meet the specific needs of emerging markets.
- Build strategic partnerships: Collaborate with local businesses and distributors to expand its reach.
- Invest in marketing and branding: Create targeted marketing campaigns to raise awareness and build brand loyalty.
c) Implement Change Management:
- Foster a culture of innovation: Encourage experimentation, risk-taking, and a willingness to embrace change.
- Empower employees: Give employees more autonomy and responsibility to drive innovation and decision-making.
- Communicate effectively: Provide clear and consistent communication about the company's vision, strategy, and progress.
- Invest in training and development: Equip employees with the skills and knowledge needed to adapt to the changing market.
d) Focus on Enterprise Mobility Solutions:
- Enhance security and privacy features: Strengthen its existing security and privacy features to cater to the needs of enterprise clients.
- Develop specialized enterprise solutions: Create tailored solutions for specific industries and sectors.
- Expand its global reach: Target enterprise customers in emerging markets with high growth potential.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: RIM's core competencies lie in its secure messaging platform and its expertise in enterprise mobility solutions. These recommendations leverage these strengths while addressing the company's weaknesses in innovation and user experience.
- External customers and internal clients: The recommendations consider the needs of both individual consumers and enterprise customers, aiming to create a more user-friendly and secure experience for all.
- Competitors: The recommendations are designed to help RIM regain its competitive edge by addressing the key strengths of its competitors, such as Apple's user experience and Google's app ecosystem.
- Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): The recommendations are expected to lead to increased revenue and market share, although the specific financial impact will depend on the implementation and execution of the strategy.
- Assumptions: The recommendations assume that RIM is willing to embrace change, invest in innovation, and adapt its organizational culture to the evolving mobile landscape.
6. Conclusion
RIM faces a significant challenge in regaining its market share and relevance in the mobile OS platform war. However, by embracing innovation, expanding into emerging markets, and implementing a robust change management strategy, the company can position itself for success in the future.
7. Discussion
Other alternatives not selected include:
- Acquiring a competitor: This could provide RIM with a ready-made platform and user base, but would be costly and risky.
- Selling the company: This would be a drastic measure, but could be considered if the company's turnaround efforts fail.
Key risks and assumptions associated with the recommendations include:
- Resistance to change: RIM's employees and management may resist the necessary changes, which could hinder the implementation of the strategy.
- Competition: The mobile market is highly competitive, and RIM's competitors may continue to innovate and disrupt the market.
- Financial resources: Implementing the recommendations will require significant financial investment, which may not be available to RIM.
8. Next Steps
The following steps should be taken to implement the recommendations:
- Form a task force: Establish a cross-functional task force to develop and oversee the implementation of the strategy.
- Develop a detailed plan: Create a detailed plan outlining the specific actions, timelines, and resources required for each element of the strategy.
- Communicate effectively: Communicate the strategy and its implications to all employees, stakeholders, and customers.
- Monitor progress: Regularly monitor progress and make adjustments as needed.
The success of RIM's turnaround strategy will depend on its ability to adapt to the rapidly evolving mobile landscape, embrace innovation, and execute its strategy effectively.
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Case Description
The case describes competition in the market for smartphones in the US, and the position of one player, Research in Motion (RIM) who manufacture the popular Blackberry line of products. Early in 2011, RIM is in trouble. Its stock price has plummeted, amidst poor business results, and its future as an independent company is in doubt. A new Chief Executive Officer, Thorsten Heins, must decide how to position the company for the future. The case allows students to understand the strategic dynamics in platform-based industries in general, and to explore more specifically how a firm that led the industry in 2007 could fall to earth so dramatically four years later. The case is based upon data and information from public sources.
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