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Unformatted text preview: Executive Summary Industry Overview Research in Motion competes as an industry in the mobile communication device industry. This refers to the designers and manufacturers of portable communication devices as well as the related software. The industry’s evolution began with the mobile landline and the car-phone and has progressed through bag-phones and cell phones to smartphones. Mobile communications have evolved from devices that simply allow consumers to communicate with each other into products with endless entertainment and data sharing capabilities. The presence of these constant technological innovations requires any company in the industry to maintain a competitive Research and Development department in order to retain significant market share. Consumers of these devices seek wireless solutions that provide seamless access to time sensitive information such as email, short messaging service and internet based applications. This requires companies in the industry to provide the latest technology for their customers at a reasonable price. Another key success factor for these companies is providing a reliable product with dependable and fast service for all the applications it offers. In order to survive competition in this industry, companies must establish strong brand equity in order to ensure consumers will remain loyal with purchasing and updating their products and software. Companies also compete through differentiating their technological capabilities and utilizing their innovations creatively. Different mobile communications devices compete with the capabilities and speed of their operating systems and the diversity of their features (e.g. camera quality, internet connection). For many companies in the mobile communication device industry, taking risks and being the first to introduce certain technologies have led to unprecedented success (e.g. Apple’s application store). In order to implement such a Blue Ocean strategy, companies must thoroughly understand each market segment of their consumers in order to remain ahead of the competition. Industry Analysis The mobile communication device industry has become increasingly less attractive to enter for several reasons. The first is the presence of strong entrenched competitors such as Apple, Nokia, Motorola and Microsoft. These competitors wield a great deal of power in setting prices and have established long term brand equity for their products. Suppliers for the specialized parts in these devices such as microprocessors and semiconductors hold a moderate sway over companies in the industry because such suppliers are fairly rare and switching costs are high. Consumers using mobile communication devices have relatively low switching costs between devices as long as they remain with the same network carrier, another factor making the industry unattractive. There are very high barriers to enter this industry because of the cost of patenting technology, contracting with suppliers and the high costs of marketing. Despite patenting technology, contracting with suppliers and the high costs of marketing....
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- Spring '10
- Marketing, RIM