Harvard Case - Make or Break at RIM (in 2013): Launching BlackBerry 10
"Make or Break at RIM (in 2013): Launching BlackBerry 10" Harvard business case study is written by John F. Burr, Frank T. Rothaermel, Jose Urbina. It deals with the challenges in the field of Information Technology. The case study is 23 page(s) long and it was first published on : Jan 3, 2014
At Fern Fort University, we recommend that Research In Motion (RIM) should pivot its strategy to focus on a niche market within the enterprise sector, leveraging its existing strengths in security and reliability. This involves a comprehensive digital transformation encompassing IT infrastructure, data analytics, and cybersecurity, while also embracing innovation in mobile technology adoption and software development and engineering.
2. Background
The case study details the precarious situation faced by RIM in 2013, as its once-dominant BlackBerry smartphone platform was rapidly losing market share to Apple's iPhone and Google's Android. The company had invested heavily in the development of BlackBerry 10, a new operating system designed to revitalize its fortunes. However, the launch of BlackBerry 10 was met with lukewarm reception, leaving RIM with a critical decision to make: fight for market share in a crowded and competitive landscape or shift its focus to a more sustainable niche.
The main protagonists of the case study are the executives at RIM, particularly Thorsten Heins, the CEO at the time, who had to navigate the company through this turbulent period. They were tasked with making difficult decisions regarding the future of the company, balancing the need for innovation with the reality of a shrinking market share.
3. Analysis of the Case Study
The case study presents a classic example of a company struggling to adapt to rapid changes in the technology landscape. RIM's success in the early 2000s was built on its strong focus on security and reliability, making its devices popular among business users. However, the company failed to keep pace with the evolving consumer demands for innovation, user experience, and app ecosystems. This led to a decline in market share and a loss of relevance in the broader smartphone market.
To analyze RIM's situation, we can utilize the Porter's Five Forces framework:
- Threat of new entrants: High, due to the low barriers to entry in the smartphone market.
- Bargaining power of buyers: High, as consumers have a wide range of choices and can easily switch between platforms.
- Bargaining power of suppliers: Moderate, as the components used in smartphones are readily available from multiple suppliers.
- Threat of substitute products: High, as other devices like tablets and laptops can fulfill similar functionalities.
- Competitive rivalry: Very high, with numerous players competing for market share.
This analysis highlights the challenges faced by RIM in its attempt to compete head-on with established players like Apple and Google. The company's limited resources and dwindling market share made it difficult to sustain a fight for dominance in the broader smartphone market.
4. Recommendations
RIM should adopt a niche strategy, focusing on the enterprise sector where its strengths in security and reliability are still highly valued. This involves a multi-pronged approach:
Reimagine BlackBerry 10: Instead of competing with Android and iOS in the consumer market, RIM should reposition BlackBerry 10 as a secure and reliable platform for enterprise users. This involves focusing on features like data encryption, device management, and compliance with industry regulations.
Strengthen Enterprise Partnerships: RIM should actively engage with businesses and government agencies, building strong partnerships to promote BlackBerry 10 as a secure and reliable solution for their critical operations. This involves tailoring solutions to specific industry needs and providing dedicated support for enterprise customers.
Invest in Innovation: While focusing on the enterprise market, RIM should still invest in innovation to stay ahead of the curve. This involves exploring emerging technologies like AI and machine learning for enhanced security, Internet of Things (IoT) integration for connected devices, and blockchain in business for secure data management.
Embrace Digital Transformation: RIM needs to undergo a comprehensive digital transformation to improve its IT infrastructure, data analytics, and cybersecurity. This includes:
- Cloud computing for scalability and cost-effectiveness.
- Data analytics for better understanding of customer needs and market trends.
- Cybersecurity to protect sensitive data and maintain trust with enterprise customers.
Optimize Operations: RIM should streamline its operations strategy to improve efficiency and reduce costs. This involves:
- Business process reengineering to eliminate redundancies and improve workflows.
- IT cost optimization to reduce expenses associated with technology infrastructure.
- Outsourcing non-core functions to focus on core competencies.
5. Basis of Recommendations
These recommendations are based on the following considerations:
Core competencies and consistency with mission: RIM's core competencies lie in security and reliability, which are highly valued in the enterprise sector. This approach aligns with the company's mission to provide secure and reliable communication solutions.
External customers and internal clients: The focus on the enterprise sector addresses the needs of businesses and government agencies seeking secure and reliable communication platforms. This also provides a more sustainable market for RIM, as enterprise customers are less price-sensitive and value long-term partnerships.
Competitors: By focusing on a niche market, RIM can avoid direct competition with Apple and Google in the consumer market. This allows the company to leverage its existing strengths and differentiate itself from competitors.
Attractiveness: The enterprise market offers a significant opportunity for RIM, with a growing demand for secure and reliable communication solutions. This approach is also more sustainable than competing in the highly competitive consumer market.
6. Conclusion
RIM's decision to launch BlackBerry 10 was a bold move, but the company failed to adapt to the changing market landscape. By focusing on a niche strategy within the enterprise sector, RIM can leverage its existing strengths and build a sustainable future. This involves a comprehensive digital transformation, innovation, and a commitment to delivering secure and reliable solutions for enterprise customers.
7. Discussion
Other alternatives not selected include:
- Continuing to compete in the consumer market: This would have required significant investment in marketing, app development, and innovation, which RIM lacked the resources to sustain.
- Selling the company: This would have been a difficult decision for RIM, but it would have allowed the company to exit the market and avoid further losses.
The key risks associated with the recommended strategy include:
- Failure to attract enough enterprise customers: This could lead to a decline in revenue and further financial difficulties for RIM.
- Inability to keep pace with innovation in the enterprise market: This could lead to RIM losing its competitive edge and becoming obsolete.
The key assumptions underlying the recommendations include:
- RIM's existing strengths in security and reliability are still highly valued in the enterprise market.
- RIM can effectively implement its digital transformation strategy and improve its IT infrastructure, data analytics, and cybersecurity.
- RIM can build strong partnerships with enterprise customers and tailor solutions to their specific needs.
8. Next Steps
To implement the recommended strategy, RIM should take the following steps:
- Develop a comprehensive digital transformation plan: This should include a detailed roadmap for improving IT infrastructure, data analytics, and cybersecurity.
- Reposition BlackBerry 10 as a secure and reliable platform for enterprise users: This involves focusing on features like data encryption, device management, and compliance with industry regulations.
- Build strong partnerships with enterprise customers: This involves tailoring solutions to specific industry needs and providing dedicated support for enterprise customers.
- Invest in innovation: This involves exploring emerging technologies like AI and machine learning for enhanced security, IoT integration for connected devices, and blockchain in business for secure data management.
- Streamline operations: This involves business process reengineering, IT cost optimization, and outsourcing non-core functions.
These steps should be implemented over a period of 12-18 months, with regular monitoring and adjustments to ensure the strategy is on track.
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Case Description
The case opens with the background of RIM and a description of the industry as well as technology upon which RIM based its success. It follows chronologically how the industry shaped up, including trends and competitive dynamics.
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