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RESEARCH IN MOTION – THE EVOLUTION OF WIRELESS

In 2007, Research in Motion (RIM) was a company that many thought was the dominant force in the wireless industry. Their signature product, the BlackBerry, was “synonymous wireless e-mail, spawning countless imitators and creating a product category where none existed before” (Castaldo, J., 2007). Surely RIM was poised for success; however, three short years later, the industry is wondering if RIM can compete with the likes of Apple and Google with their new devices running on their revolutionary iOS and Android operating platforms. The future of wireless industry is constantly improving and the future looks promising for “smartphones” with internet capabilities. The trend shows that more and more cellular phone users are now upgrading their handsets to smartphones. Statistics that tracked sales of phones in the United States showed that in January 2010, “234 million Americans subscribed to mobile phone plans”. Of these, 42.7 million owned internet-accessible smartphones, which represented an 18 percent increase over a three month period (Practical Ecommerce, 2010). RIM was one of the original companies that first changed the way we perceived what a cellular phone could do. The market is once again being revolutionized, in order to stay competitive in this evolving market; RIM needs to decide what steps to take to ensure success in the future.
Background and History
RIM was one of the first major technology companies to originate from Canada. The company was founded in 1984 by Mike Lazaridis and Douglas Fregin while they were both students at the University of Waterloo, which should come as no surprise as their headquarters are located in Waterloo, Ontario, Canada. Originally, the company was set up as a business to help clients with their computing or electronic needs. “Within four years, the company would focus on the transmission of wireless data and setting up of wireless point-of-sale customer terminals using radio waves” (CBC News, 2008). In 1992, Jim Balsille joined the company by investing $125,000 of his own money for 1/3rd stake in the RIM. In, 1997 RIM went public with a listing on the Toronto Stock Exchange and raised $115 million from investors. In 1999, the company introduced its revolutionary BlackBerry email device, “a bulky rectangle with a narrow screen than ran off one AA battery” (Hempel, J.., 2009). At this point, RIM had gotten the attention of several wireless carriers and many of them agreed to sign contracts to provide the wireless service.
Unfortunately, RIM would run into some legal troubles in 2001, when a “group of Illinois-based inventors files a lawsuit in a U.S. Federal Court, accusing RIM of building its wireless e-mail network by infringing on patents held by an American patent-company, NTP Inc. of Virginia” (CBC News, 2008). The issue was eventually resolved with RIM paying out a settlement of $23.1 million to the U.S. based company.
Over the past 10 years, RIM has sold well over 65 million phones and increased its stock market capitalization to $96 billion from $42 billion. According to Forbes, RIM ranked no. 1 on Fortune 2009 list of Fastest-Growing Companies. It has easily taken over Nortel as the flagship technology company in Canada. (Hempel, J.., 2009). Moving to the present, RIM is still very much a successful company and certainly a major player in the smartphone sector of the wireless market. With over 12,000 employees, RIM is one of the biggest employers in Canada.
Organization
RIM has a well developed organization that promotes achievement, creativity and risk-taking among its employees. RIM supports this environment by applying a variety of perspectives, such as the lack of formal barriers to encourage free-flow communication and cooperation from within all levels in the company. Lazaridis is a firm believer in continuous research and development to further deploy technology forward and learning new ways to increase the potential from this. All employees of RIM are given a free Blackberry. This allows the employees to use and carry the Blackberry religiously. The usefulness of the BlackBerry was apparent amongst the employees and addictive, leading to the nickname crackberry. For the employees, being able to use the products they developed created excitement and lead to product improvement from its employees. To protect its advantage over competitors of its technology, RIM has followed a very strategic and careful policy to use patent protection of its products (Carayannopoulos, S. 2005). Products
In 1995, United States mobile carrier BellSouth was looking for ways to rejuvenate the traditional pager market. BellSouth had a similar vision to RIMs new products, the enabling of portable wireless devices that were capable of receiving and sending data. This was an important improvement of the current pager market that was only able to receive communication one-way. It was estimated by BellSouth that two-thirds of paging messages sent out received a response, however current pagers on the market were incapable of sending one (Carayannopoulos, S. 2005). RIM had the technology to produce a product that was able to send two-way communication and BellSouth agreed to expand its current network coverage to enable the handling of such a product. In 1997, Reach in Motion revolutionized the pager market with the launch of the Inter@active pager (Carayannopoulos, S. 2005). The wearable design of the two-way Inter@active pager allowed users to response and receive pager messages in both numeric and text formats. The hardware design made the launch of the Inter@active pager a success. It only weighed 4.5 ounces, roughly the same size of a traditional pager, and had a traditional miniature keyboard that allowed the user to type messages with their thumbs. From its concept of being energy efficient and simple to use, the pager ran on an AA battery and required to be replaced every 500 hours. In 1998, RIM launched its next generation pager, the RIM 950. In addition to the same capabilities as its predecessor the Inter@active pager, the RIM 950 was capable of Internet connectivity, with the ability to send and receive emails, access Internet databases, and personal management functions (contacts and calendar) (Cingular Wireless, 1998). This technology was later to be known as the BlackBerry Enterprise Sever (BES). The BES service redirects new emails, calendar updates, or documents over the internet directly to the mobile device (Research in Motion, 2010)
In 1999, RIM embarked on another milestone by pioneering the development of the smartphone market with the introduction of the Blackberry. Using the hardware platform from the Inter@active pager, RIM developed software that enabled the user to

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