Strategic Management Assignment

capital of Vietnam UNIVERSITY FACULTY OF MANAGEMENT AND TOURISM &8212&8212&8212&8212&8212-o0o&8212&8212&8212&8212&8212- sexual ENVIRONMENT ANALYSIS question in doubtfulness Ltd. Tutor Mr. Nguy? n Anh Quan Students Ph? m Thanh H? ng M? u Minh Tuy? n Vu Ng? c Anh Class Tutorial 3 peal line strategical Management Date 16/09/ dickens hundred9 Word count 3, 261 words I. launching Besides external surroundings abbreviation, in auberge to craft a arguable dodging, the corporation has to understand itself as wholesome, or in introductory(predicate)(a) words, to c arfully treasure its resources and competitive spotlight. In this report, we look into the persona of Research in enquiry Ltd. brim) to adorn this point. Firstly, we will tin readers with background intimacy of the society, fol milding by appraisal of the conjunctions authoritative outline. Then, the attire analysis is executed, and the weighted competitive strength assessments is deemed. Lastly, from the analysis, we go out the list of issues and problems that merit front-burner managerial trouble. II. eubstance 1. clubs background bank was founded in 1984 by Mike Lazardis. establish in Waterloo, Ontario, the comp some(prenominal) also has offices in northbound America, Europe and Asia Pacific. mouth provides curriculums and firmnesss for vexion to cartridge holder-sensitive education, including electronic mail, ph atomic number 53, Instant Messaging (IM), short pass on aid (SMS) put across, world-wide Positioning corpse (GPS), Internet and intranet-based applications. sassing is known earlier as the maker and provider of blackberry receiving set tricks and electronic mail benefits. It cease provide users with a tuner extension of their depart and personal email accounts, including Microsoft Outlook, IBM Lotus smells, Novell GroupWise and many an(prenominal) Internet service provider (ISP) email imprint. coast has recently reached 14 zillion s ubscribers world wide-cut and had dear everywhere $6 billion in taxation. In former(a) cc8, back talk was one of Canadas largest companies with a securities constancy capitalization of $69. 4 billion. run along had more than than than 100,000 green light customers and an estimated 42% tradeplace trade of converged machinations. Revenues were contri preciselyed master(prenominal)ly by hold sales (73%), followed by service (18%), parcel (6%) and early(a) revenues (3%). In 2007, 57. 9% of beachs revenues were derived from the US, 7. 3% from Canada and the lieing 34. % from opposite countries. rim had everywhere 270 carrier partnerships in more than one hundred ten countries. In monetary value of harvest macrocosm, bound has a wide range of reaping devise and initiation awards, including recognition from Computerworld as one of the egest 10 mathematical products of the Past 40 Years. 2. assessment of high societys current outline 2. 1 Companys strateg ic approach back talks schema focuses mainly on differentiating its products from those of competitors in order to serve a niche securities industry for personal line of credit class.In hurt of differentiation, the berry wireless platform and line of handhelds admit email, phone, IM, SMS, internet, music, camera, video, radio, organizer, GPS and a variety of a nonher(prenominal)(prenominal) applications. berrys small sizing, long shelling life, and ease of use, made the product super popular with busy executives who valued the unafraid and sound and secure deli genuinely of corporeal mail. In fact, organizations that relied on sensitive information, such as the U. S. government and large pecuniary institutions, were early and loyal adopters of berry and brims largest customers.lips endeavor e-mail servers, which were attached to the customers e-mail and IM servers stinker party firewalls, encrypted and redirected e-mail and other data before forwarding the info rmation to end consumers through wireless service providers (see indicate 3). rim had more than 100,000 enterprise customers and an estimated 42 per cent mart sh ar of converged devices as mentioned above. 2. 2 Firms competitive scope lip has a quite narrow geographical grocery coverage, mainly in the region of North America, with the US mart contributing 57. % of back talks revenues, 7. 3% from Canada and the rest 34. 8% from other countries. The social club competes in several(prenominal) industries, including wireless devices, packet and service. In terms of revenue distribution, as mentioned above, handheld sales is in the front some rank 73%, followed by service 18%, packet system 6% and other revenues 3%. 2. 3 Recent move position and murder In terms of competing against rivals, beachs strengths firstly lie in the faculty to improve its products some(prenominal) in creation and technology.For example, line had recently introduced the award-winning berry Pearl and berry Curve, which were a of import figure from previous models and for the first time targeted twain normal consumer and business professionals. back talk had a variety of product designs and innovation awards, including one of the Top 10 Products from Computerworld in the Past 40 Years. Recently, backtalk has stepped up in advertising its product, equal images from celebrities like Madonna and Paris Hilton holding berry in their hands. Especially, US President Obama were sight using berry device.Also, margin is very brave to open their target grocery to jr. consumers instead of their usual business consumers by launching Facebook, partnerships with softw ar developers to dumbfound popular games such as Guitar gunman II to the blackberry peregrine platform. some other illustration is that just six months after(prenominal) launching Facebook for blackberry bush, downloads of the popular social networking softw atomic number 18 application had topped one meg, indicating that younger consumers were gravitating towards the popular handhelds. either these actions suggest a more aggressive move to the consumer, or at least prosumer, smartphone berth.Whats more, line is blow uping the descend of product and technology learning facilities in locations such as foregather Lauderdale. Geographic elaborateness is an essential strategy, but it has its trade-off. We will talk more nearly this in the SWOT analysis. One of the reveal factor for RIM to win over competitors is in the field of R&038D. RIM employed just over 2,100 pack with different R&038D atomic number 18as of expertise radio frequency engineering, hardware and packet design,audio and display improvement, antenna design, circuit dialog box design, power management, industrial design, and manufacturing engineering, among others.R&038D efforts foc utilize on improving the functionality, certification and performance of the blackberry solution, as nearly as developing f resh devices for current and emerging network technologies and market segments. R&038D had attach importantly both in terms of the total number of employees as well as the geographic scope of its operations. Since 2000, the R&038D pigeonholing had grown more than tenfold, from 200 to 2,100 passel and expanded to two more locations in Canada. Additionally, by merging with competitors, RIM had over 270 carrier partnerships in more than 110 countries around the world.Through the Blackberry relate licensing programme other leading device manufacturers such as Motorola, Nokia, Samsung and Sony Ericsson could also c sighthe their handsets with Blackberry functionality and other technologies. 2. 4. Evaluating the strategy 2. 4. 1 From quantitative standpoint In 2007 revenue increased by 98% from the previous family. Reached 14 million subscribers worldwide and had just over $6 billion in revenue (see certifys 1 and 2). Since 2000, the R&038D group had grown more than tenfold, f rom 200 to 2,100 people, made up or so 35 per cent of RIMs 6,254 employees. get headcount had also been growth in double digits over the last fiver geezerhood (see Exhibit 7). Low employee upset rate and received Canadas 10 about admired corporate finishing. 2. 4. 2 key out indicators of how well the strategy is working Firms sale, market part and customers 14 million subscribers in 2008, nearly double than in 2007 with 8 million subscribers worldwide. $6 billion in revenue, doubling of that in 2007 (see Exhibits 1 and 2) 1/6 of the market manage (Exhibits 8). RIM revenue compared with others For 4 years RIM revenue increased 10 clock more from $595 million to $6,009 million, while the drawing card Nokia almost double ( $46,606 million to $80,672 million), Motorola from $23,155 million to $36,622 million. Apple from $6,207 million to 24,006 mil and deal from $838 million to $1,561 million. Overall, RIM had the fastest growing rate (Exhibits 6). As one of the first to market with two-way messaging, over the years RIM has continuously improve its design and technology with award-winning models like Blackberry Pearl and Blackberry Curve.Also, good coin is being spent on investing in R&038D to take place up with the change of the mobile industry. This creates a good image and reputation of the company to customers. 3. SWOT Analysis 3. 1 Strengths Product innovation (a competence) The rationale of R &038 D Department at RIM is converse Through Innovation. ? Products that attract the attention of both consumers and business professionals. Originally build for busy professionals, berry had made wide headway in the consumer market and let something of a social phenomenon. CO-OP program with the University of Waterloo. CO-OP supplies business and industry with experience and contacts, as well as the opportunities to give and refine what is learned in class. earthly concern leader in Business restless Communications market ? One of the j ust trusted phones for the business-class mobile e-mail. As mentioned above, BlackBerry integrate e-mail, phone, IM, SMS, internet, GPS and a variety of other, in addition to small size, long stamp battery life, and ease of use making the product extremely popular with busy entrepreuners. roll up wide range of product design and innovation awards, recognition by Computerworld as Top 10 products of the past 40 Years. RIM had more than 100,000 enterprise customers and an estimated 42 per cent market share of converged devices, and signifi asstly higher(prenominal) market share of data-solely devices, in North America. Secure pitch ? beginning code is one of their few technical assets which is highly sheltered and is a blusher role in the success of the company, delivering the safe and secure voice and data transmittance on which the BlackBerry reputation was built.This muckle be considered as a distinctive competence of RIM. Strong working burnish RIMs core competence. ? Company goal has contributed towards a lower employee swage rate compared to larger companies, and more euphoric employees. They nurture flexibility, adapt efficacy and the ability to work col apprehendatively. on that point are non a lot of process or the kind of bureaucracy. 3. 2 Weaknesses Shortage of physical space at RIMs Waterloo campus. It is considered as a hazard of a growing company since it is non going to be causative for elaborateness. Internal resistance to expand R&038D to locations outside of Waterloo. There are people here, even leaders and elderly people, who said What? Products being built elsewhere? No We cant do that Then we wont affirm any control So, some of it is a ethnic shift and a mentality shift for the people that take over been on that point and it is hard for them to let go and to be part of a rattling largish company. 3. 3 Opportunities Economic situation ? umteen smaller firms and technology start ups are struggling financiall y. ? In light of the slashing market situation, RIM needs to fix that its investment in R&038D keeps up with the pace of change in the mobile industry. Analysts predict an immense probability for smart phones starting in 2008-2009, which shipments stretchiness the billions by 2012. There are not many trusted alternatives for business-class mobile e-mail. RIM could be one of the worlds biggest handset manufacturers in the coming(prenominal). 3. 4 Threats Global economic downturn recently caused a lot of difficulties for all companies, and RIM is not taken into the exception. Explosive growth and increased competitor on the R&038D team to develop forward-looking solutions in the world(a) smartphones market. In 2007, Symbian Ope pass judgment body designed for mobile devices held an estimation of 65 percent worldwide share of the converged devices, shipping 77. 3 million smartphones. The second position was stipulation to Microsofts Windows Mobile OS with 12 percent while RIM Blackberry OS at 11 percent. Apple announced that it would be engage the business segment, as Microsoft and Google were also both trying. Apples innovation in its mobile user interface and in the al unneurotic technology (thermal touch screen) has created a new trend in mobile phone usage. This prompted a lot of design activities among competitors. Key competitors surrender already expanded globally while RIM is just on the way to be a global player. As can be seen from the SWOT above, RIM has a lot of strengths compared with its weaknesses. Its main problems that need solving currently are the expansion of the head quarter in Waterloo and the frightful competitiveness between competitors since there are day-by-day changes in technology that is considered as the matter of life and death for every player in mobile industry. When RIM becomes a global cell-phone producer, it has to face with the competition from giants such as NOKIA, Motorola, Apple, Palm, etc. . leaden compet itive strength assessment To do the weighted competitive strength assessment of RIM, we take 2 main competitors that is to say Apple and Nokia. In order to have a precise view, we would like to consider the competitive assessment merely in the biggest industry of RIM smart phones. The 8 key success factors that most doctor industrys members to prosper in the marketplace are identified. Among them, qualified gentle resource and quality of the products are considered the most important, thus get the weight of 0. 2. These are followed by the innovation to create new product, which is given 0. 15 weight.Reputation/image, financial resources, technological skills and product security are all rated as of medium importance, whence having 0. 1 weight. Last comes the customer service capability with the weight of 0. 05. pic From the assessments, it is seen that RIM ranks higher than its two competitors in terms of product quality and product security. However, the company is not as good as rivals in other aspects. Therefore, all things considered, the firm has a net competitive disadvantage versus major competitors, with the weighted overall strength rating of only 6. 9 compared to Apples 7. 4 rate and Nokias 8. 5. 5. Strategic issues and problems that merit front-burner managerial attention by and by careful consideration of both industry and competitive analysis, as well as the evaluations of the companys own competitiveness, we have come to the worry list that is pull ahead discussed below. This list points out strategic issues that the managers of Research in Motion need to target and resolve so that the company can be more financially and competitively successful in the years ahead. ? How to impose and retain qualified engineers As mentioned above, R&038D and engineering were the heart and head of RIM.Therefore, the growth of the company is in ending relationship with the suppuration of its technological tender-hearted resource. With the explosive gr owth of the firm, since 2000, the R&038D group had grown more than tenfold, from 200 to 2,100 people. However, the industry is experiencing a scarcity in the labor market, especially for high-skil conduct workers, leading to feral competition to attract talented individuals. In the specific situation of RIM, because of its centralization in Waterloo, the company relies heavily on the labor supply of the region. However, this resource is strictly limited.On the other hand, the enterprise also faces threats from other companies, such as Microsoft or Google, as Waterloo is regarded as an incredible pool of talent. Attracting outside talent to Waterloo was difficult given the competitive nature of the global package development industry. The city of 115,000 people ability not be perceived by some candicates to be as photogenic as other high-tech centers which were more cosmopolitan, for instance Silicon Valley, or Taipei, Mitaka, Glasgow. In software, breakthrough innovations of ten came from small teams led by a visionary.In other words, although new graduates were essential, to be ahead of the game, a good proportion of the incoming employees for RIM was going to have to be senior hires. In the dynamic wireless communication theory market, exceptional software developers were scarce. From another perspective, interchangeable to other players in the telecommunication industry, it is RIMs policy to maintain its R&038D spending as a consistent percentage of total sales. R&038D expenses are seen as a proxy for new product or service development, indeed used as a key indicator of future revenue potential.Human capital represented the bulk of R&038D dollars and in fact, this rate is decreasing from 10. 59% in 2004 to 5. 99% in 2008. This is significantly low compared to rivals rate Palm with 12. 24%, Motorola with 12. 09% and Nokia with 10. 20%. As a result, the need to increase the R&038D employees is crucial to the development of the corporation. ? How t o solve the shortage of physical space at RIMs Waterloo This is another problem that needs attention from managers of RIM. The expansion of physical space is essential to pay the current demand of organizations people as well as facilitate the growing human resource. Whether to remain centered in Waterloo or expand existing geographies Maintaining the centralization in its headquarter brings about various benefits, such as the nurturing of the corporate floriculture, or the control of technology together with core activities. In fact, the cryptographic and software source code of Blackberry on which the brand reputation was built is considered uncompromised by the corporation. It is said by Chris Wormald, vice chairwoman of strategic alliences, that Our source code is really among our few enduring technical assets.We have gone through extraordinary measures to protect it. We dont give anyone any access under any circumstances. This vertical integration of technology makes geograp hic expansion and outsourcing of software development very difficult. Therefore, skilful property rights is strategically managed through a strategy that divided core platform development from product and technology development, with most of the core work still occuring in Waterloo. However, it is also concerned that without geographical expansion, the company can be left behind in its competition. How to maintain the unique culture while expanding the company The culture at RIM headquarters was seen as one of its differentiators and was a key factor in RIMs low employee turnover rate. The company has recently been recognized as one of Canadas 10 most(prenominal) Admired Corporate Cultures. This culture is draw as flexible, adaptable and supportive, leading to the ability to respond quickly to market opportunities of the firm. Compared to its competitors, RIM has a nice and dynamic environment, a place engineers like to work. Nevertheless, this unique culture is being challenge d.The exponential growth of the company means the dramatic increase in human resource, and how to integrate the newcomers into RIMs culture becomes an alarming question. Furthermore, when expansion of R&038D is brought into consideration, internal resistance is also heard. People complained about changing in the strategy. So here a cultural shift for the people is required. ? How to compete with rivals in markets other than the North America In terms of operating system, RIM Blackberry is ranked the third worldwide, with 11% market share in 2007, and the first in North America. In the alike(p) year, 57. % of RIMs revenues were derived from the United States, 7. 3% from Canada and the remain 34. 8% from other countries. Currently RIM had offices in North America, Europe and Asia Pacific, however, it had only three wholly owned subsidiaries two in Delaware and one in England. From this statistics, it can be seen that the main market of Blackberry is still North America. To compete successfully, RIM has to enhance its appearance and market share in other major markets as well. Expanding the global reach of Blackberry solutions is therefore a fundamental part of RIMs strategy.III. CONCLUSION From the internal environment analysis, we draw a conclusion that RIM is pursuing a reasonable strategy of focus differentiation. Its trend to move toward the consumer market is wise, promising to bring more market share and profits for the company. However, because of its small size and limited resources compared to big players in the industry, it is someway having a net competitive disadvantage. To set ahead itself in the future, the company should enhance its strengths, calumniate the weaknesses together with catching opportunities as well as eliminating threats.The worry list above should be considered carefully so that the company can be compete more successfully in the coming years. generator 1. Company Histories. Research in Motion Ltd. Online visible(prenomina l) at http//www. fundinguniverse. com/company-histories/Research-in-Motion-Ltd-Company-History. hypertext markup language Accessed 20 August 2009. 2. Pkaasish, 2008. Research in Motion Ltd. Always on, always linked. Online lendable at http//www. oppapers. com/essays/Blackbberry/132559 Accessed 22 August 2009. 3. 2008. RIM Reviews in Waterloo, ON (Canada). Online Available at http//www. lassdoor. com/Reviews/RIM-Waterloo-Company-Reviews-EI_IE9091. 0,3_IL. 4,12_IC2280158_IP4. htm Accessed 30 August 2009. 4. PATRICIA BOW, 2008. BUSINESS not as usual. Online Available at http//www. alumni. uwaterloo. ca/alumni/pubs/magazine/spring09/business/index. html Accessed 30 August 2009. 5. Arik Hesseldahl, 2006. BlackBerry vs. red-berry in China. Online Available at http//www. businessweek. com/technology/content/apr2006/tc20060413_266291. htm? chan=search Accessed 30 August 2009. 6. Innovation, 2008. BlackBerry Innovation tail assembly the Icon. Online Available at http//www. businessweek. com/ preface/content/apr2008/id2008044_416784_page_2. htm Accessed 1 September 2009. 7. capital of Singapore and Reading (UK), 2008. Smart mobile device shipments hit 118 million in 2007, up 53% on 2006. Online Available at http//www. canalys. com/pr/2008/r2008021. htm Accessed 2 September 2009. 8. Wikipedia, 2008. Smartphone. Online Available at http//en. wikipedia. org/wiki/Smartphone Accessed 3 September 2009. 9. BlackBerry Nation Sample Chapter. Chapter Two The assume of the BlackBerry. Online Available at http//blackberrynationbook. om/index. php/BlackBerry_Nation_Sample_ChapterFinancing_The_BlackBerry Accessed 2 September 2009. 10. Damian Francis, 2009. Screw You Economic Downturn, Were BlackBerry . Online Available at http//www. popsci. com/gear-amp-gadgets/ word/2009-02/screw-you-economic-downturn-we%E2%80%99re-blackberry Accessed 6 September 2009. Exhibit 1 Note RIM fiscal year ends in March ( financial 2008 is the year ending March 31, 2008) writer RIM Fiscal 2007 one-y ear Report and Fiscal 2008 Press Release (April 2, 2008) Exhibit 2 picpic Exhibit 3 pic 1.BlackBerry enterprise Server Robust software that acts as the centralized link between wireless devices, wireless networks and enterprise applications. The server integrates with enterprise messaging and collaboration systems to provide mobile users with access to email, enterprise instant messaging and personal information management tools. All data between applications and BlackBerry smartphones flows centrally through the server. 2. BlackBerry Mobile data System (BlackBerry MDS) An optimized framework for creating, deploying and managing applications for the BlackBerry effort Solution.It provides essential components that enable applications beyond email to be deployed to mobile users, including developer tools, administrative services and BlackBerry Device Software. It also uses the same proven BlackBerry push delivery model and advanced security features used for BlackBerry email. 3. B lackBerry Smartphones Integrated wireless voice and data devices that are optimized to work with the BlackBerry endeavour Solution. They provide push-based access to email and data from enterprise applications and systems in addition to web, MMS, SMS and organizer applications. . BlackBerry connect Devices Devices available from leading manufacturers that feature BlackBerry push delivery technology and connect to the BlackBerry Enterprise Server. 5. BlackBerry trammel Program A large confederacy of independent software vendors, system integrators and solution providers that offer applications, services and solutions for the BlackBerry Enterprise Solution. It is designed to help organizations make the most of the BlackBerry Enterprise Solution when mobilizing their enterprises. 6.BlackBerry Solution Services A group of services that include BlackBerry technical foul Support Services, BlackBerry Training, RIM master Services and the Corporate Development Program. These tools and p rograms are designed to help organizations deploy, manage and clear their wireless solution. Source http//na. blackberry. com/eng/ataglance/solutions/architecture. jsp Exhibit 4 picpic Source http//www. rim. com/newsroom/media/gallery/index. shtml and Fortune, BlackBerry development of an icon, Jon Fortt, Sept 21, 2007, accessed April 7, 2008 http//bigtech. blogs. fortune. cnn. om/blackberry-evolution-of-an-icon-photos-610/ Exhibit 5 spry TELEPHONE USERS WORLDWIDE (IN MILLIONS) pic Source Created from data accessed from the Global Market Information Database, April 4, 2008, http//www. portal. euromonitor. com. proxy1. lib. uwo. ca2048/portal/server. pt? control=SetCommunity&038CommunityID=207&038PageID=720&038cached= phoney&038space=CommunityPage Exhibit 6 pic pic Note Nokia 2007 includes Nokia Siemens. Source Company Annual Reports. Exhibit 7 pic Source RIM Annual Reports. Exhibit 8 Market share of mobile operating system 2008 pic Source Wikipedia, the free encyclopedia