Blackberry Maker RIM Problems Analysis and Recommendations

Company Background Research in Motion (Nasdaq: RIMM) is the former market leader in smartphones, and up until 2011 was growing its profits. However, since the introduction of the iPhone and especially Android phones, RIMs core product the Blackberry has seen declining market share. In FY2012, RIMs revenues dipped by 7.4% and its net income declined by 65.9% (Arthur, 2012). The companys market share in smartphones has now fallen to 5.3%, down from 11% one year ago. This decline in market share indicates that as customers replace their old Blackberries, they are increasingly turning to competitive products, especially Android products. The problems for Blackberry began with the introduction of the iPhone. Prior to that point, the smartphone industry was nascent and only feature the two players who had emerged from the predecessor Personal Digital Assistant (PDA) industry, Palm and Blackberry. These products were generally aimed at the corporate market, the Blackberry in particular, and were considered a s business tools. The iPhone revolutionized the market for smartphones by appealing directly to consumers. The iOS allowed for the development of applications by third-party companies that would enhance the functionality of the device. This was something that Blackberry had done little of to that point. This feature, combined with the high level of appeal that Apple had gained via its dominant share in mp3 players, made the iPhone an instant hit. Blackberry had a slowShow MoreRelatedIs Blackberry Performance Effectively The Performance Of The Organization1374 Words   |  6 PagesFocal Issue and Analysis of Issue The lack of knowledge in 2013 has caused the primary issue that facing blackberry, in this case, is there is a challenge to make blackberry performance efficiently, which led to decrease the competitive advantage of the company. the lack of performance efficiently has showing RIM as against change, that make it hard to be innovation like other completive which also will lead to financially unstable. 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