In Response to Joshua’s Post: Reviving RIM
Oct 6th, 2012 by jluo28
In response to Joshua’s blog post, Research In Motion (RIM)’s poor performance in the market implies that customers have lost sight of its value proposition. The smart phone industry is extremely competitive. RIM has failed to keep up the pace with rivals such as Apple Inc. and Samsung Electronics Co. RIM hopes to revive sales through the latest Blackberry 10. If profit margins remain below 30%, it would be difficult for the company to be profitable.
RIM’s shortcoming in this competitive market is its failure to provide points of differences. BBM and push e-mail may no longer be a unique value proposition for customers. Developed markets is an over communicated environment. RIM should leverage the security strength of Blackberry in trying to reposition the competition. RIM may not be the first in innovation, but they must unoccupied positions in which it can be first. If they cannot be competitive in developed markets, perhaps they can gain market share in emerging markets of Asia Pacific, South Africa, Venezuela and Indonesia.
Sources:
RIM Has $12 Fair Value On International Market Adoption And Growing Subscriber Base