INTEGRATED CASE STUDY

Research in Motion

Have you ever seen people walking distractedly down the street staring at their hands?
Have you ever been waiting in an airport, and the person beside you is typing quickly on
a tiny keyboard? Have you ever used a Blackberry?

Research in Motion (RIM) is a multi-award-winning company that designs and produces

hardware, software, and service solutions for wireless communications used by
worldwide business and consumer markets. These state-of-the-art products and services
provide customers with immediate access to information in order to make sound business
decisions 24 hours a day, seven days a week. Whether you use the Blackberry device or
the Pearl “smart” phone, you can be assured that you have purchased a quality product
connecting people either at work or at play, designed and built by one of the most
innovative Canadian companies of all time.

Background

RIM is a Waterloo-based company founded in 1984 by two University of Waterloo

engineering students, Mike Lazaridis and Douglas Fregin. Today, Mike Lazaradis and
Jim Balsillie, who joined the company in 1992, share the leadership role in the company
as co-CEOs.

The first Blackberry device came to market in 1999. Since then, RIM has consistently
introduced many new and innovative products and services that are used by businesses
and consumers around the world. The wireless solutions industry is an extremely
competitive one, and, in 2002, RIM was sued for patent infringement by an American
company, NTP. The case was finally settled in 2006, with RIM paying NTP $612.5
million.1

RIM has offices in North America, Europe and the Asia-Pacific. It is traded on the
NASDAQ stock market and the Toronto Stock Exchange. In 2006, RIM had revenues of
over $2 billion and a net income of $382 million. At that time, it employed almost 4,800
people worldwide.2

Current Products

The Blackberry is aimed primarily at the business market. This hand-held unit functions
with RIM solutions to provide the user with access to time-sensitive information. Loyal
users have permeated the market to the degree that many are accused of never letting go
of their “crackberry”. With minimal traditional marketing, this product has become a
status symbol among business people.
The Blackberry unit allows the user both access to and the capability to work with a wide
range of business applications, including such things as:
• work and personal email accounts
• calendar
• address book
• task list
• internet
• telephone
• intranet access
• software access, such as spreadsheets

The newest product introduced by RIM, the Blackberry Pearl, moves away from the B2B
market, focusing instead on the consumer market. The Pearl is currently going head-to-
head with Apple’s iPhone. The Pearl responds to the increase in consumers’ demands for
a product that allows access to various conveniences:
• wireless email
• camera
• digital music player
• text messaging
• digital video

RIM is confident that consumers will develop a loyalty to Pearl in much the same way
the business sector has with the Blackberry.

The RIM Culture

RIM has a well-developed corporate culture that celebrates achievement, creativity, and
risk taking. It develops a workforce motivated to achieve beyond its potential. The
company supports this environment through a variety of participative opportunities and
programs.

Employees at RIM are compensated by base pay, merit pay, and benefits. Benefits
include a free Blackberry, on-site massage, subsidy for gym fitness membership, and
opportunities to participate in a variety of wellness programs. Social events include
holiday parties, picnics, and team-building activities.

Corporate Structure

RIM is lead by an executive team comprised of co-CEOs. Balsillie also holds the position
of chairman, while Lazaridis is also the company president. There are two chief operating
officers; a chief financial officer; a vice-president, Enterprise Business Unit; and vice-
president, Corporate Marketing.
There have been recent concerns among industry analysts and company enthusiasts about
the decision to continue operating with two CEOs, and about the status of the board of
directors of the company. Many feel that RIM should reconsider the co-CEO
management decision. An article in Canadian Business states that “RIM should follow
Microsoft’s example and make Lazaridis the chief technology officer instead of co-
CEO”. Also causing concern and disappointment is the fact that, as the company grows
its global business, as of 2006, the board of directors is still entirely made up of
Canadians.

Jim Balsillie is viewed as the public face of RIM, having a more charismatic and out-
going personality that people identify with. As well, he brings a wealth of business
knowledge to the company, holding both a degree in commerce and an MBA. He is
responsible for driving corporate strategy, business development, marketing, sales, and
finance. Lazaridis, with his engineering degree, prefers to work in the background
leading the technology innovation. He is passionate about science and electronics, and is
responsible for product strategy, research and development, product development, and
manufacturing for the company.3

Corporate Philanthropy

RIM is famous for its corporate giving. It strongly believes that it is important to give back
to the community in which it operates. Communities support businesses and, in return,
businesses must support communities—a symbiotic relationship. Both Balsillie and
Lazaridis have been honoured for the leadership and financial contributions they have
independently made to many Kitchener-Waterloo based organizations. Balsillie has
donated money for a cancer-care centre at the Grand River Hospital in Kitchener-Waterloo
as well as founded, and continues to fund, the Waterloo Children’s Museum. Lazaridis
donated $100 million to establish a world-class think tank, the Perimeter Institute for
Theoretical Physics, in Waterloo. He also donated $50 million to the University of
Waterloo, to help create the Institute for Quantum Computing.

What the Future Holds

The wireless communications industry is an extremely competitive one, and RIM has
positioned itself to continue to be a key player. The lingering American lawsuit is over.
The market for Blackberry products and service solutions continues to grow. The appeal
of the Pearl is promising. And the global potential remains lucrative.

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Endnotes
1
<http://en.wikipedia.org/wiki/Research_In_Motion>.
2
<http://www.hoovers.com/rim/--ID__59141--/free-co-factsheet.xhtml>.
3
Information found on the company website, <www.rim.com>.
Questions

1. Describe RIM’s co-CEO commitment to social responsibility.

2. What strategy is RIM pursuing?
3. Analyze the Blackberry and the Pearl according to the Boston Consulting Group
Matrix. What strategies should RIM use?
4. Sketch the organizational structure of RIM.
5. What type of departmentalization is being used? Is this appropriate in a hightech
industry?
6. Currently RIM has two CEOs. What problems might occur as a result of this
organizational strategy?
7. How has the Blackberry changed the way people in businesses communicate? What
are some of the advantages and disadvantages of this to the business and the
employee?
8. Discuss the sources of personal power of each CEO.

You Do the Research

1. Research two of RIM’s competitors for product and market comparisons.

2. Complete a timeline of the NTP lawsuit.
3. Complete a SWOT analysis of RIM.