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Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor Favorable TYPE OF FACTOR Unfavorable

Internal

Strengths
Growing brand image Comprehensive offerings Robust financials

Weaknesses
Dependence on few customers Issues with product supply

External

Opportunities
Positive outlook for smartphones Expanding portfolio of offerings

Threats
Increasing competition Involvement in legal issues

SWOT Analysis of RIM


SWOT analysis is the tool which helps the organization to understand where it stands. The SWOT analysis of Samsung make it understand that where Samsung stand in the market.

Strengths
One of its most important strength is that it has heavy assets with it thats why it is manufacturing high technology products. It is an established brand in developed countries. Its effective communication in the market is strength of RIM. In RIM, the R&D has given more importance thats why there is effective R&D in RIM which is responsible for innovation of RIMs products. Its R&D delivering award winning products as well. RIMs market share is 62% which is really a big market share. RIM has successfully established in handheld market. RIMs products are innovative, unique and have good qualities which help it to retain its existing customers and attract new customers. One Strength of RIM which is very important for every organization to be successful is its competent work force and management and RIM has blessed with it, there is a lot of talent in RIM. Its strong corporate culture is also strength of RIM which helps to make its people happy. RIM is among those companies which have strong finances thats why RIM is making advanced technological products with better quality. Reputation management in RIM considered very important thats why the reputation of RIM has successfully established globally.

Weaknesses
More concerned towards R&D is also responsible for high spending which is not good for any organization. RIM targets only few customers which are risky because as the competition increasing it can take away its customers and can turn RIM as defaulter. It targets niche market so its products are very high price products.

Opportunities
The telecommunication industry is growing explosively which is an opportunity for RIM to establish in this industry. As the RIM exists only in developed countries and it is successfully established there so it can also introduce in developing countries where the use of smartphones is increasing therefore it is great opportunity to capture the market of developing countries as well. It can grow more through expansion of the brand in new market and target new market. As it is the pioneer of smart phones so it can be the leader of that industry as well by making continuous innovation.

Threats
As the industry is growing the demand of engineers for telecom is also growing so it would be difficult to find the best talent when the engineers will be limited. RIM is targeting few customers and competition is increasing as well, more and more competitors are entering in the smart phones industry so it is the threat for RIM that they can take away its target customers. RIM also has very few products which is the star in present but there is no other cash cow product which can back up its stars.

TOWS Analysis of Blackberry


Posted by Neni Manize When Research In Motion Ltd. brought the BlackBerry to the market, much of the way business used to be done is now anything but the same old, same old. Also, with its acceptance into business came its acceptance into the general population, but with that came

the growth of many competitors looking to take some of the market share from the company. The objective of this paper is to do a TOWS analysis for this product, based on openly available information, to see where the product stands today, and where it may look to move tomorrow. Prior to 2002 the BlackBerry was simply a two-way pager with a thumb keyboard attached to it. With the introduction of the 5000 and 6000 series BlackBerry, the abilities began to expand with the introduction of Java and the ability to transmit email. With the 7000 series came the integration of a full color screen, making web browsing a more enhanced experience. Followed by the introduction of the 7100 series, this is where the company began to market to the general consumer rather than just the business professional. Then, with the 8000 series, the market for the general consumer was cemented with the addition of features such as WiFi capabilities, built in cameras, and memory expansion options. With today's 9000 series phones RIM has expanded the Blackberries capabilities with the addition of full HTML support for web pages, the ability to receive RSS feeds, and many enhanced online social networking capabilities (Vercillo, n.d.). With this history of innovation behind it, a SWOT analysis of this product may help us to see what the future holds in store.

Due to the innovative history of the BlackBerry up to this point, it's strengths have helped to keep it in the American consumers consciousness, with 37% of the US market for smartphones as compared to its next closest competitor Windows Mobile at 26% (Hansberry, 2009). Much of this strength in market share comes from the business world, due to IT professionals pushing for its use because, "with BlackBerry Enterprise Server, IT administrators can enforce hundreds of policies on the phone, from disabling multimedia features like the camera and music player to restricting which websites users can visit" (Morisy, 2008). Up to this point none of the Blackberries competitors come even close to this functionality from an IT standpoint. Along with that RIM has looked to upgrade the BlackBerry's looks and general consumer appeal (Morisy, 2008), to help garner even more of the market. The weaknesses of the BlackBerry can be attributed to some of the reasons that IT departments seem to show a real love for its capabilities, because as Hansberry, 2006 points out the IT department "aren't terribly interested in media, web browsing and other goodies that Windows Mobile and other platforms seem to handle better." Along with this, until the latest models of the 9000 series the BlackBerry did not have touchscreen capabilities, so it is

yet to be seen if this latecomer to touchscreen technologies has a good solution in place (Vercillo, n.d.). Also, with only one BlackBerry model available with High-Speed Downlink Packet Access (HSDPA), RIM has opened itself up to the multitude of cheaper offerings from other competitors that have been offering this capability; this may have been a misstep for them not to offer this capability in more models (Chan, 2009). Also, at question has been the BlackBerry's network architecture, since a worldwide outage took place in April of 2007. Although, such outages sometimes happen on a localized basis, it can be a huge liability to have the entire worldwide network go down (Blackberry outage, 2007). One of the biggest opportunities for RIM and the BlackBerry line is the BlackBerry Partners Fund, which is being used to help create downloadable applications for the BlackBerry from independent companies (Gardner, 2008). Apples iPhone has really dominated this market, and the BlackBerry has been slow to adopt this model for creating applications, but with both an already commanding presence in the US market and the addition of useful applications the BlackBerry would be well positioned to gain even more market share. Also, based on some of the examples given earlier in this paper, the BlackBerry could certainly benefit from upgraded web capabilities, and overall multimedia capabilities. With nearly every electronics manufacture from LG, to Nokia, to Samsung coming out with their own smartphones, the threats to RIMs BlackBerry are many fold. This is especially true with the already mentioned weakness in its web interface. In the global market, the BlackBerry's market share rose by nearly five percent, at the same time Nokia's market share fell from 51.4% to 38.9%, showing that with the shear number of offerings available in this market, even when you have a near dominating hold on the market it can quickly fall away. With the BlackBerry's often late arrival to new technologies, such as the use of touchscreens, HSDPA, and the availability of add-on applications, to help maintain and expand their market share, the engineers and designers at RIM need to begin catching the technology curve and getting in front of it to help create more market share for their offerings. While SWOT analysis can help to show many of the aspects of what is right and wrong with different products, businesses, or systems, what it fails to show is to what quantitative degree each of these aspects may hold sway. As can be seen by the growing market share that the BlackBerry is currently able to capture, the BlackBerry's current strengths outweigh its weaknesses. The real question at this point is, how long will it be before a star performer that excels in the areas in which the BlackBerry is lacking, starts to meet the level of security that many IT departments enjoy about the BlackBerry and being to eat at its market share? Or, will the team at RIM rise to the challenge and upgrade their interfaces and applications to the level that their security applications have risen? Thus, setting the stage for the BlackBerry to begin taking even more market share from its competitors. Only time and the ever-incessant demands for the new, the useful, and the innovative that permeate the market place will tell.

Black Berry Vs. Apple Case 1[1] - Document Transcript


1. Case Study #1 BlackBerrys Rise in Brand Power The Dueling Marketing Strategies of RIM versus Apple Presented by Team Mpyreon: Natasha Gowda Courtney Szabo Ying Ying Choi Chris Hauk Geoff Salt MKTG 1102 Set 1J ATTN: Professor AnneMarie Webb Hughes Submission Date: October 19, 2009 2. Table of Contents Problem Identification. Page 3 Case Findings.3 to 5 a) Facts...3 b) Research4 c) Assumptions..5 SWOT Analysis.5 Alternatives....6 to 7 Solution and Plan of Action. 8 Application of Course Concepts Appendix A References .11 2 3. Problem Identification In order to retain and grow smartphone market share, how can Research in Motion adapt its product strategies to control the next generation of their consumer target market segments, while strengthening their enterprise markets? Case Findings a) Facts Research in Motion (RIM) pioneered the development of the smartphone market in 1998 with the BlackBerry, positioned in government and enterprise target markets. Recognized as the all-in-one portable wireless communication device, BlackBerry has gained a competitive edge with its wide portfolio of smartphone products: BlackBerry Curve, Pearl, Tour and Bold series. As Blackberry enters the maturity phase, RIM cant rely on the sales of current enterprise segments to retain market shares. Therefore in 2008, the BlackBerry Storm series was introduced to cater to the mainstream consumer segments. However, the Storm resulted in low customer satisfaction rates and the Storm2 was launched as an improvement in October 2009. Notably, RIM is the fastest growing company in the world with 14 million BlackBerry users in over 135 countries (case reference). The companys revenue reached a value of $11, 065 million between 2005-09 where 92% is generated outside North America. In FY2009, the companys revenue grew by 84.1% over 2008 (Datamonitor, 2009). RIM has grown by expanding into foreign markets where it held 18.7 percent of the global smartphone market share in 2009 (Toronto Star, 2009). Strong financials attract investors and allow RIM to grow with introduction of new products and solutions. However, RIM faces a threat to its global share and revenue as various competitors enter the market and launch new products. 3 4. b) Research The smartphone market is forecasted to rise 19% throughout years 2009 to 2011. Although mobile phone sales decreased by 9% in early 2009, the smartphone movement increased by 13% despite the economic crisis (Datamonitor, 2009). Smartphone consumers have proved that they value entertainment and multi-media applications in their mobile devices. These trends present an opportunity for RIM to grow their product lines by focusing more on mainstream consumer needs. Competitive Analysis: Globally, RIM holds 20% of the smartphone market share. Although this is a rather substantial portion of the available market, RIM faces threats from close smartphone competitors and is constantly rivaling to stay on top. Smartphone competitors consist of: High Tech Computer (HTC), Apple, Nokia,

Googles Android, Samsung and Palm. Apples smartphone net sales for the fiscal year end September 2008 was $11.8 billion. In 2009, research shows that Apple smartphones seized 13.3% of the global market share as their 3GB iPhone is growing in popularity selling for $199 with a service contract (Datamonitor, 2009; Toronto Star, 2009). Additionally, the iPhone provides a competitive advantage, as the device is able to run upwards of 85,000 applications providing higher utility for customers. Likewise, Nokia dominates the global smartphone share at 40% threatening North American market shares (Abkowitz, 2009). Target Market: The demographics of the current Blackberry target market is composed of mid to upper class buyers aged 30-55 in the professional, executive and industrial segments. The mainstream consumer market is a target for acquiring new customers where RIM will penetrate this segment by incorporating changes in consumer expectations. RIM can offer smartphone products with additional multimedia components 4 5. to suit consumers interactive lifestyle. To continue long-term growth, RIM will target the next generational cohort, Tweens, who are adept to technology, social media and have considerable influence on their parents consumer behavior (Grewal, 2009). c) Assumptions-The following assumptions are based on a forecasted increase in competition, response to changing consumer needs, and market trends: The BlackBerry is entering the maturity phase in the product life cycle RIM will continue to expand their product lines and services to grow RIM will continue to expand into foreign markets and build partnerships An increased number of competitors will enter the smartphone market There will be an increased demand for smartphones in the coming years Consumer expectations of smartphone devices will change The average selling price of mobile communication devices will decline RIM will continue to partner up with software developers and add applications SWOT: Research in Motion RIM Strengths Weaknesses Internal -Comprehensive offering and portfolio -Dependence on few customers -Growing brand image and brand loyalty in the business and government -Strong financial performance segments -Strong research and development -Issues with product supply Opportunities Threats External -Expanding portfolio of offerings and -Declining average selling price applications -Increased competition in -Positive outlook for Smartphones smartphone segment -Fastest growing company in the world -Involvement in legal issues (Datamonitor, 2009) Purpose: The analysis of the company SWOT outlines opportunities where RIM can grow their global smartphone market share and resist against external threats, by utilizing its company strengths and improving upon its weaknesses. Alternative Solutions to the Problem 1) Product Development: The current capabilities of the BlackBerry Storm2 will not be enough to meet changing consumer expectations in the long run. RIM can grow its North American and Global market share by adding a BlackBerry series the to product depth 5 6. under the breadth of mobile communication devices. The BlackBerry Sky will feature increased multimedia and application capabilities, non-scratch recycled metal, a full LED touch screen in combination Qwerty keypad on the reverse side of the device, and a satellite service option for all customers. The satellite service will offer a greater value and higher utility for customers who want to use their mobile device anywhere in the world. Advantages: Adding Blackberry Sky to the Blackberry product line would create and deliver value by satisfying the changing needs of current and new customers in targeted segments. This alternative would sustain growth, as a new product creates incentive for customers to continue purchasing BlackBerry products

and provide higher utility with the added features. With a complete product line, BlackBerry will be able to withstand external threats from competitors. The new BlackBerry Sky will induce a sales boost as new products generate a large percent of revenues and dominate over other brands. Disadvantages: If RIM fails to satisfy the needs of changing consumer expectations, it will result in a loss of revenue and profit. Lack of demand for the Sky may decrease the value of the BlackBerry brand and discourage current and new customers to buy from the BlackBerry product line. Also, competitors may build on the BlackBerry Sky concept and release an improved model to grab market share, if the product fails. 2) Market Penetration: To grow smartphone market share in the enterprise and consumer segments, RIM can increase brand awareness by communicating superior benefits of the BlackBerry brand. To increase brand awareness and intensify distribution 6 7. efforts, RIM can open BlackBerry stores with specialized BlackBerry service, located in business centers and suburban areas all over the world; especially, in North America, Europe, and Asia. Advantages: By improving the marketing mix and opening BlackBerry specialty stores in current markets, RIM will penetrate its markets and grab market share. Adding to the place of product distribution, RIM will have another vehicle to intensify communication of its BlackBerry products through customer service excellence. Also, BlackBerry specialty stores provide added value to its products, by offering convenience and product knowledge to current and new customers within targeted markets. Disadvantages: The cost of additional marketing efforts will not be compensated if additional promotion and place of distribution proves futile. In this case, RIM will lose smartphone market shares to competitors who provide innovative products or services with a perceived greater value. If the BlackBerry delays new product launches at its new specialty stores, customer will not have the incentive to buy from BlackBerry product line. 3) Market Development: The third alternative is for RIM to further penetrate global markets by partnering with a mobile carrier services in countries with emerging markets to grow smartphone market share (Appendix A). Advantages: In many developing economies, there is a growing proportion of middle-class households who are beginning to buy technological devices. This presents an opportunity 7 8. for RIM to grab market share and increase revenue. Continuing to partner up and cobrand with global carriers enhances various consumer perceptions of product quality and adds value to BlackBerry products. Disadvantages: There is the potential that continuing to co-brand with global carriers may fail for RIM; global carrier brands are suited to respective geographic regions and demographics in the different cultures, resulting in different customer profiles. Carrier companies may change their priorities causing co-branded products to be discontinued. As a result, customer relationships and loyalty created with co-branded products would be lost. Lastly, venture into foreign markets may be impeded by foreign governmental regulation. Solution and Plan Action In order to satisfy the needs of the next generation of consumers and grow global smartphone market share, RIM should increase its product depth by adding a new series to the Blackberry smartphone product line. The compact BlackBerry Sky will feature greater multimedia and application capabilities, nonscratch recycled metal, a full LED touch screen in combination Qwerty keypad on the reverse side of the device, and a satellite option for all customers. This speedy BlackBerry will satisfy changing consumer expectations about what smartphones should provide and once again become the all in one mobile device. Globally, the Sky smartphone phone is targeted at current and prospective consumers, who have an

ever changing need for a multi-media device, from web browsing to music, movies, gaming and application customization. The product launch of 8 9. BlackBerry Sky will further increase brand value, profitability, and grow North American and Global smartphone market shares for RIM. Marketing Strategy and Marketing Mix: Product Up until now, RIM has revolutionized mobile communication devices with the BlackBerry smartphone. The idea would be to enhance product depth by adding a new BlackBerry to the product line by creating a multi-media device to better satisfy consumer needs. By enhancing the smartphone features and ultimately redesigning the BlackBerry, the product will attract consumers and dominate market share. Price The price point will be set by the competitors pricing strategies. For those customers that desire the satellite service, an additional charge will be predetermined. Place The BlackBerry Sky will be distributed through North American and Global service carriers, retail outlets, and through the BlackBerry promotional website. Promotion RIM will communicate benefits of the BlackBerry Sky to consumers through tailored ad campaigns, internet marketing, viral marketing, social media channels and exclusive offers to current and new customers (Appendix A). 9 10. Appendix A Application of Course Concepts SWOT: Analysis of RIM Strengths, weaknesses, opportunities and threats Target Market: By analyzing target markets and incorporating demographics and psychographics of target segments, our team was able to better cater to our target markets and maintain brand dominance. Marketing Mix: Product, price, promotion, and place variables Growth Strategies: For the three alternatives we utilized: - market penetration through brand awareness and place of distribution - market development through further globalizing BlackBerry products product development through adding to BlackBerry product depth and brand extension by introducing a new product under the BlackBerry brand Product Life Cycle: Research has indicated the BlackBerry is in the maturity phase of the life cycle and must develop strategies accordingly. Brand loyalty: Enhanced when

implementing product strategies to exceed customer expectations.

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