Posted by & filed under Management, Strategy, Technology.

On the back of dismal second quarter results, in which RIM reported that its profit dropped 58 per cent to US$329 million and its revenue fell 15 per cent to US$4.2 billion, the Toronto Stock Exchange and NASDAQ saw massive selling of the RIM stock. On Friday alone, RIM lost $3 billion in its stock capitalization bringing its current market capitalization to $12.3 billion. RIM has been loosing its market share in the smartphone market and its new PlayBook tablet has seen low sales. Analysts are beginning to doubt whether RIM can launch appealing new smartphones in a hyper-competitive consumer marketplace.

Questions:

  1. Why has RIM experienced low sales for its Playbook tablet?
  2. Which tactics can RIM undertake to turnaround its fortunes?
  3. Which new features should RIM incorporate in its smart phones to become more competitive?

Source: “Investor selloff chops $3B from value of RIM” in CP24 (article can be retrieved at http://m.cp24.com/news/20110916/110916_RIM.html).

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