2. Technology
Mobile Apps
Touch Screen
Wi-Fi
Cloud Computing
Compatibility with other devices
Multi-tasking on the phone
Societal Values and Lifestyles
Social Media
Electronic Entertainment
U.S populous is enthralled with technology and desire to have the latest
and best technology at their disposal
3. Factor Threats or opportunity Impact
Political - Different legal proceedings/ regulations 1.moderate
- Patents 2. high
Economic + Economic Growth internationally. 1.high
- Economic Recession 2. low
Social + Estimated 5 billion cell phone subscriptions 1.high
(include demographic) globally. 2.high
+ Increase growth in Canada. 3.moderate
+ Consumerism
Technological + Technological advancements Black Berry 7 1.high
operating system. 2.moderate
- increase competition for apps. 3.moderate
+ Advancement in the use of internet and
mobile devices.
4. Market Size and Growth
U.S Market
The industry is suppose to have a growth rate of 2.6% from 2009-2014
Asia Pacific
The industry is suppose to have a growth rate of 7.3% from 2009-2014
European
The industry is suppose to have a growth rate of 4.6% from 2009-2014
Scope of competitive rivalry
Foreign operations important for long term competitive success
Asia Pacific is the biggest opportunity for companies
Accounted for 52.3% of the global market value
India's Smartphone market is expected to grow to about 40 million
users by the end of 2015 from about 10 million now
5. Buyer Needs and Requirement
Consumers demand constantly changing
Vendors want more innovative products to market to consumers
Product Innovation
Short Life cycles force competitors to continuously innovate their
products
Pace of Technological Change
Rapid technological changes makes it hard for companies to stay at a
competitive advantage
6. Industry Driving Forces:
-Product Innovation
-Emerging New Internet Capabilities And
Applications
-Technological Change
Industry Trends:
-Mobile Apps
-Touch Screen
-Mobile Media
-Increased Globalization
-Increased Bandwidth
-Cloud Computing
7. Rivalry
-Strong
Supplier Bargaining Power
-Moderate to Strong
-Small number of large companies
-Raw Materials---Electrical components (must buy
high quality)
Buyer Bargaining Power
-Moderate to Strong
-Individual consumers
-Vendors
8. Profitability
› Market Revenue
The Industry is profitable for current members with the expected
revenue increasing in all of the major segments. This provides the
opportunity for companies to increase their market share
U.S market
Expected market value is $17 billion in 2014
European market
Expected market value $12.5 billion in 2014
Asia Pacific market
Expected market value $50 billion in 2014
Attractiveness
› Current Members
This industry is attractive to current industry members who have high
market shares.
› New Entrants
This industry is unattractive to new entrants due to stagnant growth
rate rates in the market.
The industry is also highly competitive and
High barriers of entry
11. Strength: Weakness:
No Debt Failure to adapt
Brand Name/Recognition Product Defects
Security Management
Business environment Product Delays
High Profit Margins Legal proceedings
One of the leaders in global markets Niche Market focus
Lack of Innovation
Opportunities: Threats:
Cloud Computing Short product life cycles
Mobile Apps Intense Competition
Smartphone’s Popularity of Apple/Android products
Rapid Technological changes Patent infringement Claims
Tablets Vendors
Bandwidth Expansion Economic Recession
Foreign Operations Slow market growth
12. RIM is currently operating under a Best
Cost Strategy, we want to stick with this
strategy.
13. oOffensive Strategies
Concentrate on Capturing Unoccupied
Or Less Contested Market Territory
Adapt and Improve Upon Competitor’s
Services
oDefensive Strategies
Improve Quality or Safety of Products
14. Concentrate on Capturing Unoccupied Or Less
Contested Market Territory
International Expansion: Focus on more global
markets specifically the Asia pacific and South
Africa
Phase 1
Form a Strategic Alliance with a local
company in India
Phase 2
Begin to test our phones in the market
Phase 3
Continue to establish and strengthen
our operations in foreign markets
Market the security features
Phase 4
Continue to monitor results and adjust as
needed
15. Adapt and Improve Upon Competitor’s
Services
Direct Connect
Phase 1
Form a contractual agreement with ooVoo
Phase 2
Begin to implement the new video calling feature to
black berry devices
Test the App
Phase 3
Begin to sell the app to consumers
Continue to monitor results and make necessary
adjustments as needed
16. Improve Quality or Safety of Products
oDecrease our product delays and
glitches
• Phase 1
Begin to implement new
technological innovations
• Phase 2
Continuous and thorough
product testing
• Phase 3
Release products to consumers