This paper critically evaluates the business and marketing strategy of the BlackBerry PlayBook tablet, manufactured by Research In Motion (RIM). It examines RIM's corporate background, market value, and global operations before assessing the PlayBook's target customers, product value layers, and value proposition. The paper applies the product life cycle framework to determine the PlayBook's current stage and reviews its sustainable life cycle practices. A SWOT analysis and competitor comparison — including Apple, Samsung, Google, and Amazon — reveal the product's competitive positioning. Pricing strategy, demand elasticity, distribution channels, and the integrated promotion mix are each analyzed in turn, concluding with an overall assessment of how RIM's strategies align with its mission to serve professional and corporate tablet users.
This paper analyzes business-level strategies to interpret the current market position of the BlackBerry PlayBook. The product faces competition from multiple large corporations, including Apple, Amazon, and Google, which have created fierce competition in the technology industry — particularly in the tablet devices market. Rapid technological advancements require businesses to adopt fast-paced strategies to serve their markets effectively. The PlayBook has been recognized as one of the best professional computing devices available, with increased processor capacity and portability among its key features.
The sections below cover BlackBerry's corporate history, market value, financial position, main products, and operations, followed by a discussion of target customers, product values, and various marketing strategies. A SWOT analysis is performed to assess the product's strengths, weaknesses, opportunities, and threats. Pricing, promotion, and distribution strategies are each evaluated in dedicated sections, with the overall goal of critically examining the marketing strategy and key elements of the marketing function in detail.
Research In Motion (RIM) is the legal name of the BlackBerry Corporation. Devices manufactured by the company are categorized as personal digital assistants (PDAs). The company has played a noteworthy role in altering the course of the mobile phone industry. RIM was incorporated in 1984 and collaborated with Ericsson as a strategic partner in various developments. In 1999, the company launched its BlackBerry products and provided an innovative solution for communications — a year also regarded as the beginning of its own manufacturing and distribution operations.
The company's business assets, income, and long-term investments are analyzed to assess its market value, including property and goodwill. Revenues totaled $18.4 billion in 2012. BlackBerry generated net income of $1.2 billion, or $2.22 per share. Total assets stood at $13,731 million as at March 2012, up from $12,875 million in 2011 (Form 40-F, 2012). The business rebranded itself to strengthen its presence in financial markets, changing its NASDAQ ticker to BBERY and its Toronto Stock Exchange symbol to TSX: BB, with the rebranding campaign taking effect on February 4, 2013 (Research In Motion, 2013).
RIM primarily deals in smartphones, tablets, and software and hardware for mobile devices. Its product line is deliberately limited, which makes it easier to manage and steer through evolving technology trends. The company is regarded as a trend-setter in the mobile industry and enjoys a strong reputation for innovative communications solutions. BlackBerry products include the BlackBerry PlayBook Tablet, BlackBerry Smartphones, and software and accessories for businesses (Research In Motion, 2013).
RIM's registered headquarters are located in Waterloo, Ontario, Canada. The company also maintains offices across North America, Europe, and Asia-Pacific, operating globally in 150 countries through its corporate office and regional offices in strategic locations. Geographic segments include Africa, Asia-Pacific, the Caribbean, Europe, Latin America, the Middle East, and North America (Research In Motion, 2013).
The headquarters facilities in Waterloo are company-owned, and a number of additional owned and leased office facilities operate throughout Canada. United States offices include five large campus-style locations in Dallas and Texas, along with sales offices. The company serves South American markets from Uruguay, Mexico, and Brazil. Asia-Pacific regional offices are present in Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore, and South Korea. European operations are managed through Germany and the United Kingdom (Form 40-F, 2012).
The PlayBook belongs to the tablet family of electronic and mobile computing devices. It weighs approximately one pound, and its 7-inch screen display enhances portability. The device is powered by a dual-core 1 GHz TI OMAP processor. Internal storage options range from 16 GB to 64 GB. The operating system is BlackBerry OS, developed through continuous research and development by QNX, a trusted business partner of RIM (Research In Motion, 2013).
Customers are among the most important stakeholders in any business, and clearly defining a target market before manufacturing and marketing a product is essential. BlackBerry's long-standing reputation for innovation in mobile and communications technology, combined with its focused product portfolio, allows the company to clearly define and segment its target markets.
The PlayBook's target market can be broadly described as the tablet computing devices market, but is more specifically defined by portability, office use, and middle- to high-income consumers. Target customers include young to middle-aged students, business executives, and professionals. The device is positioned at consumers aged 25 and above and is regarded as the first professional-grade tablet computing device. Its connectivity with BlackBerry smartphones further strengthens its appeal to corporate and professional users, with that integration and mobility being defining features of the target market.
The key features of the target market can be defined through several distinct variables: age, education, professional status, mobility, and geographic location. The product is targeted at consumers between 25 and 60 years of age. Travel time and mobility are also key characteristics — individuals who spend significant time outside their business or residential locations are primary users of the device.
Users range in education from high school graduates to professionals. Geographic location is another defining factor: residents and professionals in suburban areas, as well as frequent travelers in densely populated cities, typically have longer commutes and are therefore well-suited to mobile computing. These consumer segments share common characteristics that make them the primary audience for the PlayBook.
Product features and value are key elements in setting the stage for marketing and sales projections. Business professionals rely heavily on research and development of products structured around a three-tier product value system. The first layer is the core value — the essential benefit a product provides that satisfies the fundamental needs of the target market. The second layer is the actual value, reflecting how the target market perceives and reviews the product. The third layer is the augmented value, which encompasses additional features that address further requirements of the target market.
The core customer value of the PlayBook lies in its role as the first professional tablet computing device. It is designed to create value for BlackBerry smartphone users as well as for business and corporate professionals. Battery life, display quality, and processing speed constitute the core value of the product, fulfilling the mobile computing requirements of professionals on the go.
The actual value for customers is found in the device's usefulness as a mobile computing tool that enables users to access services while away from their business or residential locations. The PlayBook addresses the needs of professionals while traveling and enables them to carry out urgent business communications functions when outside the office.
"Three-tier value model and more-for-less proposition"
"PLC stage, sustainability model, SWOT, and rivals"
"Competitive pricing, elastic demand, and channel strategy"
"Integrated promotion channels and strategic summary"
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