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.
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.