Blackberry Essay

4674 words - 19 pages

Towson University |
Blackberry |
Consumer Profile Analysis |
|
Anna Chapman, Tyra Enoch, Bradford Bauer, David Stup |
12/13/2011 |

Executive Summary

Recently, Blackberry has fallen short in their technology innovation. This has allowed competitors to enter the market with newer innovations and better research to please consumers. By initially only targeting the business professional, Blackberry eliminated their appeal to a large chunk of the market. The new proposed target market of young professionals, 18-25, was evaluated through focus groups. The focus groups allowed insight into consumer demands, which included reliability for use in everyday life. The launch and ...view middle of the document...

Furthermore, it is obvious that Research in Motion (RIM) has been ignoring trends in consumer behavior. When analyzing recent trends in the Smartphone industry, one is able to grasp the gravity of the problems and downfalls that RIM is facing. The reason being, innovation is what drives revenue in this day in age, and RIM has been falling behind the curve. RIM’s first Smartphone was introduced in 2002, and RIM initially had an enormous foothold in the market, yet it appears that after the initial release of Blackberry’s Smartphone, they got comfortable and let their guard down allowing several competitors to enter the market and essentially "catch up" to Blackberry.
In a market such as the Smartphone industry, a market in which, according to eMarketer.com, a market share researching firm, is expected to double within the next three years, innovation and improvement become key component’s in a company’s survival. While RIM may not be taking advantage of this information, many of RIM’s top competitors including Apple, Google, Microsoft, and Nokia, are taking full advantage of this upcoming boom and are blazing the trail towards a new era in the Smartphone industry.

Company Overview, Current Target Market and Benefit Segmentation
RIM’s Blackberry was one of the original smartphones. It helped to pioneer a booming market for these new cellular phones. In addition to traditional cellular phone functions such as making phone calls and sending text messages, smartphones have the benefits of allowing users to send and receive emails, sync calendars and appointments, run applications, and browse the internet. Within the smartphone market, arrays of products have each developed their own market segments. These market segments differentiate themselves mainly based upon benefit segmentation. In general terms, benefit segmentation can be described as a form of market segmentation based on the differences in specific benefits that different groups of consumers look for in a product. In the smartphone world, three brands reign supreme: RIM’s Blackberry, Apple’s iPhone, and Google’s Droid. Each of these brands has its own unique target market. Blackberry’s target market is middle aged business, professional, and government workers interested in the utilitarian benefits of a smartphone.
It is a commonly held belief that Blackberry is the professional’s phone. That belief is supported by the numbers. Blackberry leads US workers, capturing 42 percent of the market. Apple’s iPhone grabs 22 percent, and the Droid grabs 26 percent (Hamblen). Blackberry has been the government’s main provider of smartphones since 2001, with at least $395 million in sales over the last decade and additional $84 million in sales for 2011 (Francis).
It can be argued that Blackberry gained its market share by being one of the first smartphones to offer business based solutions, while its competition offers consumer based solutions. These business based solutions can...

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