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Case Study Blackberry

2192 words - 9 pages

Case Study #1

BlackBerry’s Rise in Brand Power
The Dueling Marketing Strategies of RIM versus Apple

Presented by Team Mpyreon:

Natasha Gowda
Courtney Szabo
Ying Ying Choi
Chris Hauk
Geoff Salt

MKTG 1102
Set 1J

ATTN: Professor Anne-Marie Webb Hughes

Submission Date: October 19, 2009

Table of Contents

Problem Identification…………….………………………………………………Page 3
Case Findings……………………………………………………………………….3 to 5
a) Facts…………………………………………………………………………...3
b) Research………………………………………………………………………4
c) Assumptions…………………………………………………………………..5
SWOT Analysis………………………………………………………………………….5
Alternatives………………………………………………………………………....6 to 7
Solution and Plan of ...view middle of the document...

The company’s revenue reached a value of $11, 065 million between 2005-09 where 92% is generated outside North America. In FY2009, the company’s revenue grew by 84.1% over 2008 (Datamonitor, 2009). RIM has grown by expanding into foreign markets where it held 18.7 percent of the global smartphone market share in 2009 (Toronto Star, 2009). Strong financials attract investors and allow RIM to grow with introduction of new products and solutions. However, RIM faces a threat to its global share and revenue as various competitors enter the market and launch new products.
b) Research

The smartphone market is forecasted to rise 19% throughout years 2009 to 2011. Although mobile phone sales decreased by 9% in early 2009, the smartphone movement increased by 13% despite the economic crisis (Datamonitor, 2009). Smartphone consumers have proved that they value entertainment and multi-media applications in their mobile devices. These trends present an opportunity for RIM to grow their product lines by focusing more on mainstream consumer needs.
Competitive Analysis: Globally, RIM holds 20% of the smartphone market share. Although this is a rather substantial portion of the available market, RIM faces threats from close smartphone competitors and is constantly rivaling to stay on top. Smartphone competitors consist of: High Tech Computer (HTC), Apple, Nokia, Google’s Android, Samsung and Palm. Apple’s smartphone net sales for the fiscal year end September 2008 was $11.8 billion. In 2009, research shows that Apple smartphones seized 13.3% of the global market share as their 3GB iPhone is growing in popularity selling for $199 with a service contract (Datamonitor, 2009; Toronto Star, 2009). Additionally, the iPhone provides a competitive advantage, as the device is able to run upwards of 85,000 applications providing higher utility for customers. Likewise, Nokia dominates the global smartphone share at 40% threatening North American market shares (Abkowitz, 2009).
Target Market: The demographics of the current Blackberry target market is composed of mid to upper class buyers aged 30-55 in the professional, executive and industrial segments. The mainstream consumer market is a target for acquiring new customers where RIM will penetrate this segment by incorporating changes in consumer expectations. RIM can offer smartphone products with additional multimedia components to suit consumers’ interactive lifestyle. To continue long-term growth, RIM will target the next generational cohort, “Tweens”, who are adept to technology, social media and have considerable influence on their parent’s consumer behavior (Grewal, 2009).
c) Assumptions-The following assumptions are based on a forecasted increase in competition, response to changing consumer needs, and market trends:
The BlackBerry is entering the maturity phase in the product life cycle
RIM will continue to expand their product lines and services to grow
RIM will continue to expand into foreign markets...

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