Diagnosis of Change Requirements for Research In Motion

1.0 Introduction

In a competitive business environment, organisations are required to build the appropriate culture to promote innovation. For instance, noting the importance of innovation in a competitive business environment, Drucker (1985) referred innovation to be “the specific tool of entrepreneurs” (Cited in McAdam, McConvery & Armstrong 2004, p. 206). Despite such importance of innovation many entities have failed to create the right environment to promote innovation thus leading to them losing their market share to competitors who have joined their markets. For instance, one perspective holds that entities fail to establish innovative capacity since they become accustomed to existing ways of doing things  that lead to establishment of a frame of mind, which blocks an initiative that challenges the status quo (‘Barriers to innovation’, 2007).  One company that has failed to create such innovation capacity is the Canadian based Research in Motion Ltd. (RIM) whose market leadership in the smartphone industry has collapsed with the entry of competitors such as Apple and Google. This paper makes a systematic diagnosis of RIM to identify weaknesses and propose strategies that could help RIM enhance its outlook.

RIM has experienced a drastic turn from being a smartphone market leader to fighting for survival in recent years. The Waterloo, Ontario-headquarted entity achieved fame with its blackberry products that offered secure communication facilities thus gaining favour even with government and military establishments (Datamonitor 2011; MarketLine 2012). Such products have continued to contribute the core portion of the entities revenues (RIM 2012), but aspects such as increasing competition, failure to innovate and ineffective leadership have led to the entity losing out to competitors who have entered the market (Datamonitor 2011; Dvorak, Vranica & Ante 2011; Moritz & Miller 2012). This paper thus presents a systematic diagnosis of the entity to assess aspects of weakness in the entity and evaluate strategies that the entity can use to enhance its outcomes. To make this analysis the entity is evaluated using Nadler and Trushman (1980) congruence model and PEST.

2.0 Diagnosis of RIM’s Status

The congruence model developed by Nadler and Trushman (1980) provides a basis for assessing the challenges that RIM has faced. The model for instance provides a blueprint for diagnosing an entity’s problems by identifying the symptoms, specifying inputs, identifying outputs and the differences that exist between the planned and realized outputs (Nadler & Trushman, 1980).

2.10 Symptoms of RIM’s Status

RIM’s symptoms have been evident in a number of ways. One of the indicators of RIM’s recent status has been a loss of market share in the markets it traditionally enjoyed dominance.  For instance, RIM’s market share in the U.S was noted to have declined from 30% to 26% in a four-month period from the beginning of the year 2011 (Datamonitor 2011, p. 6). Globally, the entity’s market share was noted to have declined from 19.9% to 8.2% during the last eight quarters to the financial period ending in March 2012 (MarketLine 2012, p.6). Another symptom of RIM’s recent status has been the delaying of product launches (MarketLine 2012). For instance, the entity was noted to have delayed the launch of its BlackBerry Bold 9900 model thus giving its competitor at the time, Apple’s iPhone, the opportunity to establish a strong market presence (Datamonitor 2011, p. 7).

Declining performance of the entity’s stock in the market also symbolizes the loss of investor confidence in the entity. For instance, analysis of the trend in the market prices of the entity’s stock indicates that such prices have declined over the period from 2008 to 2012 (CNN 2012; appendix figure 1). Additionally, symptom of unfavourable working environment and/ or ineffective leadership was evident with resignation of core marketing staff at the entity, even during a period when the entity’s market share was in decline (Sharp 2011). Such symptoms evidence an unfavourable status for the entity hence the need for a systematic diagnosis.

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