A4007162 Marketing Management MBA 3A LSBF UOW

Submitted to: Jon KittoSubmitted By: Prikshit Andotra A4007162 , MBA, 3A, LSBF, UOW Date: 02/08/2010 : 

Submitted to: Jon KittoSubmitted By: Prikshit Andotra A4007162 , MBA, 3A, LSBF, UOW Date: 02/08/2010 Situational Analysis for Blackberry’s product line extension

Introduction : 

Introduction The mobile phone sector - worth of $70 billion globally and should exceed USD200 billion by the end of 2013 Research In Motion (RIM) is a strong company behind a very popular brand Blackberry within smart phones. The company is present in 160 countries, with a global turnover of $11 billion. (RIM Annual report, 2009) The major market for Blackberry has always been the corporate sector. Lately the focus is the consumer market as well. Introducing the new generation, trendy, stylish and modern blackberry fascias.

Smart phone market : 

Smart phone market Nokia – Market leader, 46% of the total sales. RIM (Blackberry)-19.9% market share Apple -14.4% market share RIM the 2nd largest seller in 2009. (Gartner Website, report 2010) Figure 1: Global market share of smart phones for consumer market, 2009 Source: Gartner (February 2010)

RIMs business objectives : 

RIMs business objectives It is important that the marketing objectives should complement the overall business objectives. According to RIM, the following are the main objectives of RIM: Continue to launch innovative new products and services to address existing and new market segments; Continue to focus on delivering strong financial performance for our shareholders. Marketing objective To increase brand loyalty by offering a user friendly products; To produce a product focused on the consumer market with more style and better looks, which can suite the lifestyle of consumers; To change the stereotyped image on enterprise by offering new products range; And to increase the market share of Blackberry by 10% in the consumer market in the next years.

Objectives of Blackberry : 

Objectives of Blackberry The Objectives of an organization should be SMART  Specific and measurable – RIM should set the sales target which can be measured on quarterly basis. Achievable – Considering current growth of blackberry the targets seems to be achievable but needs major efforts from the advertising team to promote the new product. Realistic –RIM 2009, 60% of their new sales from non-enterprise customers growth in the consumer markets looks realistic and can be attained. Timely –New stylish smart phones fascias - excellent launch time Not many companies are offering colorful and patterned designed phones fascias., first mover advantage.

Situational analysis : 

Situational analysis Political factors- Financial deficits may lead to higher taxes, lowering profitability. Changes in government policies, stability of the government may result in changes in companies strategies. Economic factors- Global recession resulted in lower consumer disposable income However, markets improving and considering the market trends consumers more willing to buy the smart phones as a result of changing needs and lifestyle. Interest and exchange rates in different economies may effect strategies. Social and cultural- Smart phones have been accepted by the customers lifestyle and integral part of day to day life. Considered as high value solution which provides many applications across the globe.

Situational analysis : 

Situational analysis Social and cultural- Smart phones have been accepted by the customers lifestyle and integral part of day to day life. Considered as high value solution which provides many applications across the globe Source: Google images

Situational analysis : 

Situational analysis Technological factors- new technology might be a big risk to the market. For example the 3G broadband services may affect smart phones. As the internet will be faster and efficient it may attract new players with new features and application in the sector. Environmental- The quality and durability ensure the longer functioning , phone fascias can be used over a longer period of time. Less natural resources reused again. The phone will be produced with all possible environment friendly methods of production Legal The legal factors include the control over use of patented technologies Pricing and monopolisation, The telephone regulations of different countries Quality of the product and health and safety of the mobile users

Porter Five Forces : 

Porter Five Forces Blackberry Bargaining power of customers Options available to the customers, bargaining power is very high. Other brands available in the market at competitive prices. This is mostly with the consumer sector and not with the enterprise sector.. Threat of new entrants Increased usage of ODMs and globally standardised components, barriers to entry have reduced considerable. Companies with good brand can use their brand name and introduce their products in the market. Big companies like Google and other IT giants may enter the market as they have the infrastructure.

Porter Five Forces : 

Porter Five Forces Threat of substitute products   A substitute for a mobile is difficult, companies are trying to improve the existing technology rather than introducing and eliminating the mobile technology with a new product completely. Bargaining power of suppliers Due to the sheer volumes of the raw materials and the components bought by RIM The suppliers have low bargaining power as the suppliers are looking to associate with major companies for a long term. Competitive rivalry High amongst the smart phone providers. Apple and Nokia have been challenging Blackberry and have forced RIM to innovate the products in order to stay competitive and enjoy high market share.

SWOT Analysis- Blackberry : 

SWOT Analysis- Blackberry

Market Research and Market Information : 

Market Research and Market Information Blackberry website, Annual report 2009 Media/Press releases SWOT Analysis Target market analysis Location analysis Competitor’s strategies Social networking sites Consumer Analysis Product Analysis Market analysis-sales trends Consumer’s feedback and their expectations

CONCLUSION : 

CONCLUSION New Generation Blackberry fascias 2 will be a success as a result of following as discussed in the report: Innovative marketing Innovative selling techniques Brand Image Great product quality User friendly Previous market trends Understanding of the consumer behaviour Durability and stylish Excellent pricing and promotion The company should go ahead with the project……..