RIM’s Inability to Adapt
At one point in its lifetime, Research in Motion Limited was producing one of the world’s most popular cell phones. Its BlackBerry gained such popularity that people began to call it the “CrackBerry”. At its peak, RIM’s stock was priced at $148/share. It is now worth $8/share.
How did this collapse come about and how can a bourgeoning entrepreneur avoid the same fate? Jason Fell wrote an article on this very topic in which he lists four main lessons to be learned from RIM’s mistakes. Among these lessons, the “Pivot when necessary” idea is the most important.
There are countless factors that contributed to RIM’s downfall, but its most crucial flaw was its inability to adapt to its changing environment. When Apple released its revolutionary iPhone in 2007, RIM underestimated its potential and did not react quickly enough. A company must always stay on its toes and be prepared to address growing competitors, especially in the fast-paced technology industry.
RIM may have had early success, but it got too comfortable with its high standing and neglected the fact that if a company is not climbing, it is falling.
