Thursday, June 5, 2008

Research in Motion Assignment


Research in Motion
By: Connor Whitehouse

Research in Motion manufactures, designs and markets handheld wireless devices for the world’s communications network. Their products are always above the competition and they are constantly adding new features to them that have been thought to be impossible. RIM’s most popular product by far is the Black Berry. It can perform or use more programs and tools than a computer can plus it can do it from anywhere. These programs and tools include wireless phone service, e-mail, text messaging, Internet browser access, instant messaging (MSN), organizer applications, camera, media player (audio and video), integrated mapping system and GPS. This makes the Black Berry a very popular item for active people in the world of business. It can keep a person connected with their job or business from almost any location in the world, which can be very convenient for them.

One factor that affects Research in Motion is the strength of the Canadian dollar. RIM is based out of Waterloo, Ontario so the fact that the Canadian dollar is strong at the moment would create difficulty when they want to export their product because it costs the buyer more money to buy their product because its value in Canadian dollars is larger. This obviously affects the business greatly. Along with the loss of sales, the high dollar could result in lost jobs due to the lack of demand and the lack of money to pay the workers salary.

Another factor that affects RIM is its legal issues over patent infringement with Motorola and the Black Berry service outage about ten days ago. These two problems affect the image of the company in a very negative way. If a potential customer hears about the Black Berry service outage or the lawsuit against RIM, they could reconsider their purchase and buy the product of another company that was thought to be more reliable.

In the Motorola lawsuit, both companies are accusing each other for copying one of the Wi-Fi featured used on both phones.

The Black Berry service outage was blamed on an update in the system that was added a few days earlier. RIM is not giving much more information than that so some reporters are coming up with alternate possibilities for the crash like an employee of the company purposely disrupting the system or that the system overloaded due to mass usage.

At the moment, Research in Motion is doing well financially but they can’t continue to mark their image in the business world with all of these lawsuits and lapses in service if they want to continue the success that they are currently experiencing.

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