BlackBerry in India: Losing its Premium Image?

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Case Details:

Case Code : MKTG291
Case Length :16 Pages
Period :2010-2011
Pub Date : 2012
Teaching Note : Not Available
Organization :Research In Motion
Industry : Smartphones
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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About RIM

RIM was founded in 1984 by Mike Lazardis⁵ and Douglas Freign in Waterloo, Ontario. The company's first contract came from General Motors⁶ for industrial automation. By the late 1980s, RIM had about US$1 million in sales and about a dozen employees. Over the years, the company evolved with the technology development and its innovative products.

For 1998, RIM reported revenue of US$21 million and a net income of US$400,000. It planned and accordingly used about half of its cash on new equipment, sales and marketing, research and development, and as working capital. The company used 10% to 15% of its sales revenue for research and development.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Ever since its introduction, BlackBerry had been one of RIM's most revolutionary devices in terms of using high-end technology services. The product was positioned as the "handset for choice" for busy users and enterprise customers.

BlackBerry allowed them to stay more easily and more reliably connected to people and resources even while on the go than competing technologies. KJ Singh⁷ acknowledged, "Today's youth find BBM (BlackBerry Messenger) a very handy tool to keep in touch with their friends through Facebook and other social networking sites, games, music, and chat rather than being bound to laptop/desktop for the same purpose. One of the most attractive features of BlackBerry is that BBM allows a free chat platform across the world.

With the integration of specialized servers like the BlackBerry enterprise server and the Lotus domino server, BlackBerry's consumers were able to get real time data and emails at any point of time. This feature made BlackBerry distinct among smartphones...

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5] Lazardis, the son of Greeks who immigrated to Canada from Turkey in 1967, was 23 at the time and had dropped out of the University of Waterloo, where he was studying electrical engineering.
6] General Motors is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker.
7] He is the CEO of Evolve Brands, an India-based marketing and advertising organization.

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