Abstract
RIM has in the past based its business model on a fully-integrated approach
with its hardware, software and services tightly linked. However, market
conditions have changed so significantly that RIM now has to become innovative
in all the parts of its business. Any underperformance by one part of its
business would mean the collapse of the whole integrated approach. However, it
remains open to question whether RIM has the right financial muscles to
achieve this goal at the moment.
This report provides a financial and business health check of RIM and
evaluates the key steps it should take to turn its business around and bring
it back to profitability.
Overview:
Pressure from RIM's investors has increased substantially as a consequence of
its poor performance during the recent quarters and the company will have to
evaluate all the potential options to turn its business around. RIM will have
to make the painful decision about whether to exit those parts of the market
where it makes lower margins and focus on its key current strengths. This
decision is not an easy one considering RIM's legacy as a fully-integrated
company where all its businesses - hardware, software and services - have
played a key role in its success.
However, as RIM is increasingly running out of cash, it is becoming difficult
for the Canadian giant to remain innovative in all parts of its business. It
can no longer sustain its integrated business model without partnering with
key players within the industry.
This study provides a financial health check of RIM and identifies the weakest
links across all its business. Using the company's current and historical key
performance indicators, the report assess all the potential scenarios
available to RIM in order to turn its business around and bring it back to
profitability. Backed by a quantitative analysis, the strengths and weaknesses
of each scenario are presented in light of the current market dynamics.
How will this research help you:
- RIM SWOT analysis and financial performance: business vs. consumer,
hardware vs. software & service
- Evaluates the future of RIM in light of its financial performance and the
current market dynamics
- The potential scenarios that are available to RIM in order to turn its
fortune around and how they could affect your business
Contributing Analysts
Malik Saadi, Principal Analyst, Informa Telecoms & Media
David McQueen, Principal Analyst, Informa Telecoms & Media
Table of Contents
Contributing analyst
What's next for the BlackBerry ecosystem? An evaluation of potential business restructuring scenarios
- Fig. 1: RIM's revenue, expenditure and gross margin, devices vs. software
and services, FY06-FY12
- Fig. 2: RIM's revenues vs. gross profits, devices vs. software and
services, FY06-FY12
- Fig. 3: BlackBerry service users, consumer vs. business, 2005-2012
- Fig. 4: BlackBerry device sales and ASP, consumer vs. business, 2006-2012
- Fig. 5: RIM's revenue, expenditure and gross margin, consumer vs. business
segment, FY06-2012
- Fig. 6: RIM's revenues vs. gross profits, consumer vs. business segment,
FY06- FY12
- Fig. 7: RIM's revenue, expenditure and gross margin, hardware vs. software
and services, consumer vs. business segment, FY06-FY12
- Fig. 8: RIM's gross profit, hardware vs. software and services, consumer
vs. business segment, FY06-FY12
- Fig. 9: RIM/BlackBerry SWOT analysis
- Fig. 10: Benchmarking various OS platforms that support HTML5
What's next for the BlackBerry ecosystem? An evaluation of potential business restructuring scenarios published by Informa Telecoms & Media in June 21, 2012. This report price starts from US $ 866.
