Date Published: 
07/25/2011

For the past few years, and now ever more intensely, RIM finds itself fighting to ‎stay relevant. RIM has been losing ground to its competitors that not long ago ‎introduced their smart phones and tablets to the world and since then have ‎been gaining market share.‎
RIM’s response seems less based on executing to its plan, and more on ‎responding to ever more demanding market pressures.  It is beginning to look ‎like a losing battle, especially when RIM’s rivals keep hammering with new ‎surprises and upgraded devices as soon as it seems that RIM is finally catching ‎up. The most recent products, the Blackberry Torch and the Playbook, are ‎examples where RIM has been trying to give customers the right products, but ‎they introduced little that was new.  Strategically, RIM is now fighting for ‎developers to develop Apps for its smartphones, but App developers chase ‎market share leaders because it gives them better revenues.  Losing developers ‎will be a big issue.  ‎
RIM’s latest move, laying off 2000 employees, will buy some time. RIM’s top ‎executives have dismissed long-term concerns about the smart-phone maker’s ‎future, claiming the company was simply going through a difficult “transition ‎period” as it shifts from traditional BlackBerrys to a more powerful generation of ‎high-end phones. They do indeed have an ace up their sleeve.   They are ‎working on, and planning to release, an upgraded product portfolio based on ‎the very powerful QNX operating system.  It’s definitely a better platform, but ‎whether it will be a better phone is a different question.  Will it be enough? Is it ‎the right cure? Can RIM make it and regain power? We will have to wait and see.‎

 

Risk Management Perspective: 

This situation has been years in development.  Unfortunately the solution has ‎also been a long time in development. It is beginning to look like RIM has lost ‎some of momentum, and is just falling behind the race.  Regaining that, ‎managerially, in its leadership, in its product portfolio is the key development ‎RIM needs to focus on. Its market. Its customers. Its partners. Its revenues.

 

Industry Group: 
Large Enterprises
Industry: 
Electronics
Country: 
Canada
Risk Class: 
Strategic
Risk Class: 
Operational
Risk Type: 
Business Strategy (Model)
Risk Type: 
Competition
Risk Type: 
Board Risk Processes
Risk Type: 
Leader Risks
Risk Type: 
Client Defection
Risk Type: 
HR

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