In this paper, we are going to be focusing on Research in Motion and how the firm can overcome it challenges. This will be accomplished by looking at: potential strategies for taking advantage of external opportunities and possible approaches for addressing future threats. Once this occurs, is when we demonstrate how the firm can adjust with these problems.
¶ … business will face is strategic planning. This is because of shifts to the operating environment will have an impact on the profit margins. In the case of Research in Motion, the company has been experiencing a loss of market share to competitors (i.e. Google and Apple). At the same time, they have been trying to reach out to customers' through new mobile devices and applications. This has resulted in the company realizing a loss of its dominance inside the industry. To fully understand what is happening requires focusing on a number of areas to include: potential strategies for taking advantage of external opportunities and possible approaches for addressing future threats. Together, these different elements will show how these issues can be addressed over the long-term.
Identify the firm's existing objectives and strategies.
The current challenges impacting Research in Motion, is that competing firms have introduced alternative products. This is having an effect on the company's market share, with select devices (i.e. The Google Android) offering customers more applications for free (on an open source operating system). This and the popularity of the I Phone have been slowly eating away at the company's dominance inside the sector. Over the course of time, the firm has been losing customers (who have been choosing these devices). This is having a negative impact on their earnings. (Kao, 2010, pp. 1 -- 7)
To address these issues, a new strategy must be used that will give the firm a strategic advantage in these markets. One possible approach is to focus on the predictive key board. This is where the key pad is able to predict what the person is typing and the preceding word. To increase market share, Research in Motion could form a series of strategic alliances where they will sell this technology to different manufacturers. This will help the firm to specialize in developing products utilizing cutting edge and they can take advantage of the shifts by working with a host of manufacturers. In the future, this will allow the company to maintain a certain amount of dominance and refocus on select areas that will increase their bottom line results. (Kao, 2010, pp. 1 -- 7)
Strategies for Addressing Potential Challenges
To deal with the various challenges, Research in Motion must embark on a radical change in direction. This is accomplished by constructing a competitive profile matrix. In this model there are several different areas that are focused on to include: economic forces, social / cultural demographics, political, technological and competitive factors. The economic forces impacting Research in Motion are that consumers have shifted the type of mobile phones they are looking for. This is impacting what is considered to be the must have devices (i.e. social / cultural demographics). From a political perspective, the company has been losing their dominance among hedge funds and large institutional investors (from the declining market share). However, the recent patents could give the firm a strategic advantage. Technologically speaking, many of the applications of Research in Motion's product are considered to be inferior. The trade mark protection of the new keyboard could provide an opportunity for the company to evolve. This is because of tremendous amounts of competition facing the firm (i.e. Google and Apple). As they have taken market share and are continually innovating. (Sweeny, 2009, pp. 187 -- 239) (Kao, 2010, pp. 1 -- 7) (McQueen, 2012, pp. 110 -- 158)
As a result, the company must have a change in direction. The best way that this can occur is through adapting a strategy that will help the firm to succeed over the long-term. To achieve these objectives there must be a focus on six critical factors that are used in conjunction with the competitive profile matrix. These include: changing the leadership, innovation, product design, marketing efforts, quality control and forming strategic partnerships. Leadership is when there must be a change in the top management of the firm (to someone who can focus on the new strategy). Product design is helping the firm to have those products that are always in demand. Marketing efforts are approaches, are reaching out to stakeholders and improving the image of the firm. Quality control is concentrating on providing a product that meets the stress from consistent demand. Forming strategic partnerships is when Research in Motion should work with all of the major manufacturers using the new key board technology. This will create an application that will help the firm to increase their bottom line results and adapt with changes inside the industry. The below diagram is illustrating where these areas would be listed using the competitive profile matrix. (Sweeny, 2009, pp. 187 -- 239) (Kao, 2010, pp. 1 -- 7) (McQueen, 2012, pp. 110 -- 158)
Six Factors that are Critical to Success utilizing the Competitive Profile Matrix
Economic Factors (marketing efforts)
Social / cultural demographics (changing leadership and forming strategic partnerships)
Political (innovation and product design)
Technological (innovation, quality control and product design)
You’re 81% through this paper. Sign up to read the full paper.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.