Introduction
Research In Motion Limited engages in the research, design, manufacture, and sale of
wireless solutions for the mobile communication industry. It provides platforms and
solutions to e-mail, phone, short message service, organizer, Internet, and intranet-based
corporate data applications. The companys BlackBerry wireless solution comprises
wireless devices, software, and services. It also enables the use of personal information
management functions, such as calendar, address book, task list, and other functions
associated with personal organizers. The company distributes its products through carrier
partners and resellers. Research In Motion was founded in 1984 and is headquartered in
Waterloo, Canada.
Purpose of this project
The main purpose of this project is to analyze the external and internal environment of
RIM and determine through this short analysis the prospect for RIM to retain its
competitive advantage through the medium term.
Methods Used in the Analysis
a. External Industry Analysis
i. The macro environment of RIM
ii. The industry environment
iii. SWOT analysis (Strengths, Weakness, Opportunity and Threats)
iv. Porters five force model
b. Internal environment
i. The resources of RIM
ii. Organizational capabilities
The Macro Environment of RIM
Firms do not exist in isolation and their performance can vary because of their external
environment. For analysis purposes well break the external environment up into the broad
macro environment and a more narrow industry environment. As their names suggest, both
of these environments are outside the firm and generally beyond the firms control, at least
in the near term. The five-macro environments are economic, political/legal, technological,
socio-cultural, and demographic. Generally, these environments are analyzed at the level
of the nation, however, RIM has an extensive market worldwide and it is evolving further
into newly industrialized nations, therefore our environmental analysis has to regard the
world economy as a homogenous environment.
The national and international economy
The national and international economy in the past two decades has contributed to the
success of RIM. Per capita income has risen in all the countries that RIM are operating in,
and as it is for most firms a growing economy is favorable for business.
Political and legal environment
There has been multiple lawsuits against RIM for patent infringements, with the most
notable one brought by NTP Inc. for patent infringements in email over wireless
technology. After a long-running legal battle, RIM announced on March 3, 2006 that it had
settled “full and final settlement of all claims” paying NTP Inc. US$ 612.5 million.
However, to the despair of RIM, another lawsuit was brought by Visto Corp on May 1,
2006 for patent infringements; this has yet to be settled.
