Sunday, October 21, 2012

Market Position of Blackberry

1.      Although Blackberry made by RIM Corporation is still used by millions of people in the United States, its usage in nothing compared to other smart-phone that are growing so quickly. Blackberry is now going downward while Apple's share of mobile traffic is going upward. The reason for this is that iPhone5 have some features that blackberry don't have them. So, people don’t want blackberry. Instead, they want to have Apple product since Apple keeps innovation and advancement in their product and they fulfill what people ask for.   

2.      RIMs position in terms of the Porter Model:

Threat of entry: the threat of new entrants into the mobile industry is high. For instance, Apple's entrant into the market is a threat for RIM.

Supplier power: the bargaining power of suppliers is low because processors of the same architecture used by RIM are produced by many companies such as Intel, Freescale and Texas Instruments.

Buyer power: the bargaining power of buyers is rising up since there is an increased choice of new smart-phones in the market.  

Threat of substitutes: RIM has threat of substitutes since technologies have advanced very quickly.

Competitive rivalry within an industry: rivalry within this industry seems to be high and this is dangerous because it results in decreased average profitability for the firm.

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