Case Pearl - BlackBerry: Ready for a New Market? Kitchener,...

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ADMS4250 Marketing Strategy York University Professor A.Rusetki 1 BlackBerry: Ready for a New Market? Kitchener, Ontario based company Research In Motion, Ltd. (RIM) enjoyed considerable success in the early 2000s. Its main product – the BlackBerry – created a whole new market for mobile hand- held e-mail devices and in 2006 RIM remained the undisputed leader of this rapidly growing (about 55% in 2006) market. BlackBerry bridged the gap between PDAs (personal digital assistants) and cell phones. Immensely popular with professionals in late 1990s, PDAs allowed storing, reading, and composing e-mails on the go but required a physical connection to a host computer to send or receive e-mails. BlackBerry, first introduced in 1999, allowed sending and receiving e-mails in real time over cell phone networks. Just like a PDA, the device was equipped with touchpad screen, a selection of business applications like daily planners and contacts managers, and a full (although tiny) keyboard. To fully utilize the product, users had to subscribe to BlackBerry service offered by RIM. The key selling points of this service were and still are “push e-mailing” when new e-mails are being automatically sent (pushed) to the device, and a “single mailbox” solution which allowed using the same e-mail address both for the office computer and the mobile device. Sales of BlackBerry devices and subscription fees remain the main sources of revenues for RIM. Figure 1: One of the early BlackBerry models - 6230 Figure 2: BlackBerry Pearl From the very beginning, BlackBerry targeted corporate executives and managers – people busy traveling whose productivity depended directly on their ability to receive information and make and deliver decisions in real time. To meet the needs of this group, RIM developed a BlackBerry Enterprise Server solution that allowed fully integrating BlackBerry devices into corporate e-mail systems. Over the years, BlackBerry built a reputation of reliable, easy to use, and most important – secure service. Gradually, RIM added features to its BlackBerries, the most notable being integrating a cell phone into the device. In addition to that, current models can have speakerphone, Bluetooth wireless technology, instant messaging, GPS, integrated two-way radio, and other features.
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ADMS4250 Marketing Strategy York University Professor A.Rusetki 2 Because the enterprise market is somewhat narrow, it took RIM five years to get the first one million of subscribers (see Figure 3). In 2004 things started to pick up rapidly: in just ten months the number of subscribers doubled, and less than three years after it reached 6.2 million. 0.00
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This homework help was uploaded on 04/08/2008 for the course ADMS A83925 taught by Professor A.rusetski during the Winter '08 term at York University.

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Case Pearl - BlackBerry: Ready for a New Market? Kitchener,...

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