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Research in Motion ‘The mobile OS platform war’ Sonal Kotecha Eesha Palkar Akshara

Author: dr-ritesh-malik

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A presentation to discuss the rise and fall of RIM


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Research in Motion

‘The mobile OS platform war’Sonal Kotecha Eesha Palkar Akshara Dr. Ritesh Malik

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‘The Beginning’RIM is started as an electronics &

computers consulting business• Transmission of wireless data.• Radio Waves technology research.

Mike Lazardis

Douglas Fregin

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Waterloo (Canada)

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‘RIM becomes the first wireless data technology in North America’

LED based terminal for General Motor assembly line.

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‘The 2 way paging innovation’

Conventional pagers could receive messages but RIM developed a technology for 2 way communication through electronic mail.

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Jim Balsille (Harvard Alumni)

Joined Mike Lazardis as Co-CEO (1992)

with an investment of 2,50,000$

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1993‘Personal Communicator’ A revolution in the field of wireless


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1995Working Ventures Canadian Fund Inc.

$ 5,000,000 is added to the cash reserves of RIM for completion of the telecom hardware and

software technologies.

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[email protected]

Introduces the first wireless handheld to the market

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1997Initial Public Offering at Toronto

Stock Exchange Raises $115 million

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Worlds first wireless handheld computer is introduced in association with BELLSOUTH, IBM &

ROGER CANTEL wireless.

6 line display


weather2 way paging

Stock market

Launches worlds first QWERTY based computer handheld BB850!

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Blackberry 850: The most revolutionary product of the decade. -NewYork Times

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1999NASDAQ it is

Raises $ 250million

Launches worlds first QWERTY based computer handheld BB850

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2001Patent Infringement

US Federal Court asks RIM to pay 23.1million $ to Virginia based NTP


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‘Blackberry adds voice capabilities with 5810 model’

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2003 Blackberry banned

A judge rules an injunction of BB in the states, but ruling stays.

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Milestone Anniversary

More than 1 million subscriber’s worldwide

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Case continues RIM agrees to pay $450 million to NTP Inc.

Finally the case went up till the Supreme Court

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RIM finally pays 612.5 million $

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2007 (1st/2ndquarter)

• 10 million subscriber’s • Most valued mobile technology company in the

world • iPhone launched in the summer season. Not seen

as a threat to Blackberry at the moment. • Alcatel Lucent partners with BB for China

distribution which leads to a 8% increase in the market boost.

• Valuation $68 billion.

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2007 (3rd/4thquater)

• Launches BB professional software • Opens first BB branded store with wireless giant

retailers. • 12 million subscribers (added 1.65million in 3rd


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The Craze Blackberry 1 the President’s BB


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RIM goes BOLD! • 1st major radical new device with a beautiful interface. • Valuation touches $84 billion. • Competition from Apple. • Blackberry STORM is launched to a lukewarm response

and mediocre reviews

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2009 • Online App Store to compete with Apple Store • Becomes worlds largest growing company with

average growth 77% over previous years, in contrast to 27% for Apple.

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2010• Buys QNX Software Systems for inspiring the

next Blackberry OS’s. • Launches Blackberry Storm (1st touch screen

with type QWERTY). • Acquires Astonishing Tribe.

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2011 (the year of doom)

• PLAYBOOK opens to mediocre reviews and pathetic sales.

• Job cuts 2,000 (10% workforce) • First year sales iPad 9.532 million Vs

Playbook 405K (after reduction of prices and massive discount marketing).

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RIM was the industry creator not the follower.

Should never have launched a product such as Playbook. Should have taken

time and launched a disruptive product.

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The 3 days that changed Blackberry’s perception

• Oct 10-13 2011.• 3 day Blackberry system failure. • 70 million frustrated users.• As a move to compensate the system failure,

Blackberry gave a $100 coupon for the Blackberry App Store purchases.

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Mike Lazaridis apologizes


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2011 A sad year for RIM

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2012• Balsillie / Lazardis step down • COO Thorsten Theil becomes the CEO. • RIM hires investment banks JP Morgan/RBC

Capital to assist in reviewing its poor performance. • BB10 launch • 5000 job cuts • $518 million loss • Stock stoops to an all time low of $6.10.

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The Era of Thorsten Heins!

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Turnaround for Blackberry


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2013 (A new Blackberry Era?)

• BB 10 opens to customers.• Z10 the first touch based blackberry with the all

new User Interface. • Q10 the first touch & QWERTY on the knew UI. • $94 million profits for first quarter. • Name change to Blackberry. RIM is the dissolved. • Rebrands App Store and lures the developers to • Sign of optimism

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The dancing stock!

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What went wrong in 2011 ?

‘The company spent more time trying to justify its existing smartphone philosophy and less time getting

ahead of trends.’- Financial Times; December 2011


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Segmentation of market for Blackberry - Enterprise - Government - Consumer

Who are Blackberry’s biggest buyers?

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What kind of Brand loyalty did Blackberry have till 2010?

-Who has used a Blackberry?

-Who have shifted from Blackberry to other phones and why?

- Who are still on Blackberry?

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What are the substitutes of Blackberry?

Product differentiation

• Brand identification • Customer Loyality • Time to build the loyality

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Turnaround specialist

• Create an industry in itself WEARABLE

• Something like Bizspark Microsoft • Niche Blackberry’s (Doctors etc.) • Accessory base • Brand ambassador • Clear the structural clutter • Shift the base to Silicon Valley

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This is the only answer for turning the wheel of fortune for blackberry!

Can you name a company which had a similar situation and got a buyout?

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Apple has created an ecosystem


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Management & Business Judgement

Exapnsion & Diversification Structural &

Heirarchy control

Markets, Marketing &


Financial Accounting &


Technology & IP

Govt regulations

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Product differentiation

• Brand identification • Customer Loyality • Time to build the loyality

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Why did Blackberry compete on prices? It was a niche phone not

a mass utility phone!

They should have segmented the market instead of dropping the price.


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Lesson to learn from APPLE! They created an industry.. iPad (TABLET) Become a market leader in innovation

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Dr. Ritesh Malik

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Positive Aspects of RIM

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5 Reasons of RIMs Success

• Carriers liked Blackberry.• Device management is included with

blackberry server.• Security was locked down.• Blackberry was comprehensive.• Blackberry was easy to use. http://www.youtube.com/watch?v=x6SDPelzcHA&list=PL08E661C7C9C04C5A

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• Nokia signed a patent license deal in2012.• Airtel launched Blackberry handsets in 2004.• In the year 2007 Blackberry was made

available on Reliance network.• BSNL also launched.• AT&T launched solar charging station for


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Customer Friendliness

• An education app was introduced in 2012 to keep youth connected.

• There was a blackberry introduced in 2009 for babies with help of LeapFrog.

• Blackberry launched a global premium apparel brand in India.

• MAX Health care started a Blackberry app for patients.

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Why was Blackberry so popular

• Blackberry launched the email concepts on the go.• The phones had svelete design, sharp screen,HD

video capture.• Blackberry improved the gap between work &

home• Blackberry became famous for its app BBM

especially from 2010 to 2012. •

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• US President Barack Obama had love for the phone as it could be used for office related work.

• In 2012 Blackberry smartphone makers RIM had roped in an Indian celebrity Ranbir Kapoor.

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Barack Obama

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Ranbir Kapoor At the country launch of Blackberry Z10 on Feb 25th 2013.

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Comparision Phones Design Dimensions Camera Processor App Microsim Battery

LifeRAM `

Blackberry Z10

Rounded & rectangular

130mm*65.6mm*9mm Chassis

8mp – rear & 2mp front

Qualcomm S4 plus 1.5Ghz dual core

Approx 70000

Required !0 hours. Standby is 13days


Iphone Round & Rectangular

130mm*65.6mm*9mm chassis

It has a retina display

Apple A6 Dual Core Processor

Approx 900000

Required !0 hours 1GB RAM


Round & rectangular


13mp-rear & 2mp -Front

Quadcore 1900MHz,Krait 300

Approx 500000

17 hours 2048 MB RAM

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• It can be easily operated with one hand• The interface of OS Blackberry 10 is

completely new.• User friendly has is there is BBM,BBM

Voice,BBM Video.• Z10 is capable of image & video stabilization.

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Eesha Palkar

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• Impact of Apple iPhone• Disattraction from core business• Compitition• Late Acquisition• Launch of Playbook• Service interuptiom• Other criticisms• Financial Table

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Impacts of the Apple iPhone

• In 2007,Apple iPhone was introduced.• The media attention led more consumer

attention towards Apple iPhone and then was called “Blackberry Killer”.

• In 2007,initially iPhone sales lagged Blackberry sales.

• In 2008,Apple sold 6.9 million iPhones and RIM sold 6.1 million which lead to downfall

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Disatraction from core business

• Jim Balsillie was very big hockey fan.He purchased hockey teams worth 1200 million dollars.

• There were no innovations or patents made during this span of time.

• This led to no change in RIM’s business from 2006 to 2009.

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Competiton from Google

• Google Android was launched.• Initially Jan 2010,hardly 7.1% Smartphones of

Android were sold in comparision to 43% Blackberry devices.

• Then in a span of 1 year Android’s sales increased(67.768) and Blackberry’s sales declined(7.63).

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Late Aquistion of QNX Softwares

• RIM management got a shock by the iPhone success and aroused to a world where smartphones with amazing UI where present.

• To renew the damage they acquired QNX. • But further delay in the implementation of the

software for Z10, Q10 caused significant damage to the companies reputation.

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• In 2010,Playbook was introduced based on QNX software.

• This innovation led to poor sales.• The stock declined from $70 to $15.8

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Service Interruption

• In oct 2011,there was service interruption for 3 days which affected the Blackberry users all over the world.

• This outage led subscribers without e-mail access and other messaging services.

• Rim attempted to placate by providing free applications worth over $100 to subscribers.

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Leadership Problem

• Dual CEO structure was considered dysfunctional management structure.

• Promoted a closed culture of communications.• Lots of Lawyers and no action.

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Other Criticisms

• Blackberry Phones were less attractive.• Browsing Capabilities were poorer.• Therefore developers didn’t developed

consumer applications for Blackberry.• Operating systems were dated and Hardware

was unappealing.

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Financial Table

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Financial Chart

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Sonal Kotecha

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Overview of market area


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Competition analysis , Growth Forecast &

Attractiveness of the market.

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Growth Forecast

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Patent acquisition & monetization

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Headquarter shifting

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Financial planning

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Analysis of consumer psychology

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PEST analysis

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Creative market research

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Akshara Ravilla

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Bibliography • Wall Street Journal • New York Times • Forbes Inc. • CNN money • RIM-war of the OS platforms • Youtube.com • Vimeo.com • Competitive advantage (Michael E. Porter) • Harvard Business Review • Mint • Jakarta Business (THE POST) • Financial Times • The economics • Financial statements from Yahoo Finance.com • London School of Economics Study package for marketing • MIT Sloan Techology Review • Canada Technology Post • Times of India • Business Standard • Deccan Chronicle

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A presentation by

• Dr. Ritesh Malik • Akshara Ravella • Eesha Palkar • Sonal Kotecha

Harvard Consulting Group