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Strategy report
TO: Proximity Mobile Team FROM: Meghan Burns DATE: September 22, 2009 SUBJECT: RIM Blackberry Strategy Analysis

Here is my RIM (Research in Motion) Blackberry strategy analysis. RIM’s original Smartphone dominance is threatened by its principle rival, Apple’s iPhone. Whether Gen Y users adopt Blackberry depends on whether RIM can continue to deliver mobile phones with the newest software and multimedia capabilities.

Research in Motion, founded in 1984, is based in Waterloo, Ontario, with offices in North America, Europe and Asia Pacific. It is “a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market” ( Research in Motion, Limited). RIM provides upscale software and wireless services through the Blackberry which supports consumers on a time sensitive schedule.
 * Profile**

RIM’s revenues for the first quarter of fiscal 2010 were · 81% from the purchases of devices · 13% from payment of services · 2% from payment of software · 4% from other revenue

During the last quarter, RIM gained 3.6 million new Blackberry subscribers, bringing the total number of world-wide subscribers to 28.5 million (Research in Motion, Limited).

Competitive Landscape RIM faces head to head competition with Apple’s iPhone to create new updated features, models and software for mobile consumers. The secondary force driving competition on the mobile landscape is the power of consumers. Consumers can change handsets when their service contracts expire or when they are ready to upgrade.

RIM strategy for competing with the iPhone has two two components: · __“land grab”__- push the new low cost Blackberry Curve with many of the same applications and advanced features found in other Smartphones. This strategy is intended to increase market share rather than revenue by attracting the mass population of teenagers (Reuters, Blackberry). · __Contrarian Theory__- focuses on efficiency rather than being the first to create new features. Since handheld devices being more efficient, network operators will continue to prefer the Blackberry over its rivals (Reuters, Blackberry).
 * Strategy**

RIM is also trying to match the efficient iPhone web browser by improving its own browser by upgrading the software and redefining what users can do on their Blackberries. However, “with all the buzz surrounding the Apple iPhone and the rush to capitalize on its success, many companies fail to realize that over three times more consumers browse the web from a blackberry” (Reuters, Business Writer).

RIM must get Gen Y users to stray away from the iPhone. The major attractions of the iPhone are: · millions of applications · fast/convenient web browser · music programs RIM also must keep the Verizon service network and hope that the iPhone does not switch service providers, from AT&T to Verizon.
 * Gen Y Implications**

Auchard, Eric. (September 25, 2009). Retrieved September 26, 2009 from [|Http://blogs.reuters.com/columns/2009/09/25/put-blackberry-on-hold-but-not-for-long/].
 * References**

Boutin, Paul. (September 6,2007). Retrieved September 27, 2009 from [].

Research in Motion, Limited. (2009). Retrieved September 14, 2009 from [].

Reuters, Thomas. (September 8, 2009). Retrieved September 14, 2009 from [].

Blog proposal
TO: Proximity Mobile Team FROM: Meghan Burns SUBJECT: Blog Post Proposal DATE: October 25, 2009

I propose that we do our Proximity Blog Post on the rumor that the iPhone switching to the Verizon network. This post would attract several mobile consumers both with and without the Apple iPhone.

The iPhone is the smartphone leader, but it can only be used on the network AT&T. Many users feel that network is inferior to the Verizon network. If Apple creates a deal with Verizon for the iPhone, then it will affect both RIM and AT&T: iPhone users will convert to Verizon and Blackberry users on Verizon will switch to the iPhone.
 * Rationale**

I recommend that we organize our post using articles discussing the rumor of the switch, such as:
 * Sources **

[]

[]

Report proposal
TO: Proximity Team FROM: Meghan Burns DATE: November 23, 2009 SUBJECT: Proposal for Report on Implication of iPhone switching to Verizon

The new and advanced Smartphone, the iPhone introduced by Apple, has changed the way consumers use and view handheld device. The iPhone is not only a mobile device, but an ipod and a handheld computer in which offers thousands upon thousands of applications to attract any user. However, one major downfall to the iPhone is its mediocre service carrier, AT&T. With implications arising of the beloved iPhone switching carriers to Verizon wireless, this may well be a dream come true for many smartphone consumers.

If Steven Job’s Apple iPhone switches service carriers from AT&T to Verizon Wireless when its contract is up, this can cause a dramatic uprise.
 * Need **

· the iPhone on the Verizon Network · Effect on the Smartphone market/competition(concerning the Blackberry and other smartphones) · Effect on the AT&T carrier

No Handheld device/Smartphone can out due this dual combination of the iPhone on the Verizon wireless service, if Steven Jobs pulls out from AT&T once the contract ends. The iPhone would, no doubt, not only control but dominate the Smartphone market. This would be an extremely valuable decision for not only Apple but also Verizon.

This report is essential for clients of Proximity who wish to target Gen-Y consumers to help them to realize  the powerful and perfect the iPhone would be if put onto the Verizon network. For the Verizon Network has built up a reputation for years of being the most reliable service carrier and with the iPhone being the newset and hottest innovation, together they can redefine how Gen-y users use there smartphone devices.

The proposed report, “Implications of the iPhone Switching to Verizon Wireless”, will cover the following topics: · Advantages of the iPhone · Advantages of the Verizon Network · Effects/Threats in terms of competition with RIM’s Blackberry(and other smartphones) · Effects/Threats has on the AT&T service carrier
 * Topics **

The following articles I retrieved are critical sources for the report.
 * Sources **

Apple Inc.(2009). iPhone. Retrieved on 2009, Novemeber 20 from [] The Apple website, in the Iphone section discusses the major advantages of the iPhone. The iPhone is a handheld computer, ipod and mobile phone in one unique multi-touch device with the options of joining the world of applications(with thousands upon thousands to choose from). This source would be perfect to include in discussing the advances of the iPhone.

Cauley, Leslie. USA Today. “IPhone and Verizon Consider iPhone Deal”(2009, April 28). Retrieved from []. Leslie Cauley, writer for USA Today discusses the idea of the Apple iPhone switching the Verizon carrier, like the other articles. However, this article discusses estimated number wise the increase in potential iPhone consumers if this were to occur. With the iPhone on the Verizon network there would be an drastic loss for AT&T says Roger Etner, head of Telecom Research for Nielson in which he states, “ That would send shivers into AT&T's stock and senior leadership." However, either way the winners are the consumers, the reliable Verizon network and the iPhone.

Ellmer-Dewitt, Phillip.”Rumors, an Iphone in 2010”(12, November 2009). Retrieved on November 20, 2009. []. Phillip Ellmer-Dewitt’s article on the rumor of the iPhone switching over to Verizon discusses how Apples contract with AT&T expires in the year of 2010. Dewitt also states how Apple is discussing plans to develop an updated “worldmode” iphone, through the use of a new hybrid chip which will enable the phone to be used under the AT&T or Verizon Wireless carrier. According to GigaOM’s Colin Gibbs, Apple is creating a Verizon iPhone planned to be launched in the summer of 2010.

iPhone Switching to Verizon Wireless( 2009, April 27). //GSMdome.com//. Retrieved November 20, 2009. []. The blog, “iPhone Switching to Verizon Wireless” by Yorga discusses the rumor of Steven Jobs took part in negotiations between the Apple and Verizon Network with the contract ending in 2010 according to USA Today.

Lentz, Michelle. iPhone on Verizon(2009, November 8). Retrieved November 20, 2009. [] Reports on the a new hybrid chip which will allow any iPhone to be used on any carrier they wish. In doing so, this puts all competition on the networks, with the only difference between users with iPhones is there service carrier. This being said, there is also reports that the Verizon iPhone will be significantly smaller with a screen size of 2.8”.

Team conference presentation proposal
//paste team conference presentation here//

Sales letter and report prospectus
8000 York Road Towson, Maryland 2125-001 631-514-4756

December 7, 2009

Mr. John Smith, Director of Marketing Research in Motion Inc. 729 Essex Drive Towson, MD 21204

Dear John: I thouroughly enjoyed speaking with you at Proximity's Next Generation Media Seminar regarding Research in Motions need to promote the Blackberry to Gen Y consumers, espeacially with the threat of the iPhone switching to the Verizon Wireless network. Enclosed you will find a prospectus for the report I had mentioned describing the implication of the iPhone switching to the Verizon Wireless network.

As you had stated earlier, RIM must figure out a differential advantage over the other psmartphones(most importantly, the iPhone). I believe Proximity can work together with you to create a campaign expressesing the unique advatages and differences over the other mobile innovations.

To achieve these goals, we can provide you with a survey in which we'll question Blackberry smartphone consumers to see which features they enjoy most, and to see what users desire in a smartphone in general( for future awareness) and also provide you with focus group results. Also, proximity's marketing team can help position new products, in which we'll use media and social networking to convey the RIM Blackberry. Researcher shows that social networking, such as Facebook is the new phenomenom among Gen Y users and by marketing and conveying this product on the site will definetly have a successful effect.

I invite you and your staff to join us at Proximity's Towson office to discuss the results of our research (from teh surveys and focus group). Also, upon request we'll collect specific members of the focus group to further discuss in detail they're feedback/findings. After, it would be crucial for you(and your staff) to meet with my group to discuss fruther marketing startegies to meet your goals.

Sincerely, Meghan Burns Media Analyst Associate


 * **//PROXIMITY reports//** || ||
 * //connecting with Gen Y using on-demand media// ||^  ||

Implications of a Verizon iPhone Meghan Burns

Creating a Differential Advantage in the Blackberry

The problem The dilema Research in Motion faces is the threat of the iPhone switching carriers from AT&T to Verizon, which will ultimately affect the whole smartphone market. The Blackberry and iPhone has been in head to head competition since the start. With the Blackberry being available through the Verizon carrier, RIM had been put at an advantage, now with the threat of the iPhone switching to Verizon it puts RIM on thin ice.

Proximity’s on-demand media solution This report will help clients with the above problem by describing the noted differences( and advantages) in which iPhone has compared to the Blackberry. This report is crucial for RIM for Apple's contract with AT&T does not end until end of 2010 which gives time for RIM to try and solve the problem before the contract ends.

Available now at www.proximity.edu

** Proximity ** **a next generation connection **

**ProximityResearch Report**

**Implications: The Verizon iPhone**

//**T**he combining of theApple iPhone with the Verizon Network could change how we communicate//

By Meghan Burns

Fall 2009

**Table of Contents**

Executive Summary 1 Introduction: The iPhone Implication 2 Advantages of the iPhone 2 The iPhone on the Verizon Network 3 Effect on the Gen Y users 4 Recommendations 5 Attachment 1&2 6 References 7

Implications 1

The new and advanced Smartphone, the iPhone introduced by Apple, has transformed the way consumers use and view hand held mobile devices.If Steven Jobs of Apple Inc. decides in 2010 when the company's contract with AT&T expires that it is in the best interest for the company to pull out of AT&T and convert to the Verizon service it would cause a dramatic uprise. Combining Steven Jobs' Apple iPhone (one of the most unique innovations this century has seen) and America's most trsuted network, Verizonand by putting this amazing inovation on America's most trusted network, Verizon could be the best idea since sliced wonder bread. By doing so, consumers who are disappointed with the AT&T service can switch over without having to give up the desired iPhone or in other situations those who are constrained with Verizon can now get an iphone. It is a win win situation without a doubt for gen y users.

Implications 2 **Introduction: Implications of the iPhone switching Carriers** The new and advanced Smartphone, the iPhone introduced by Apple, has transformed the way consumers use and view hand held mobile devices. The iPhone is not only a mobile device, but also an ipod and a hand held computer in which offers thousands upon thousands of unique applications to attract the interest of any user. However, there is one major downfall to the iPhone; its mediocre service carrier, AT&T (clearly seen in pictures below). With implications arising of the beloved iPhone switching carriers to Verizon wireless, this may well be a dream come true for many smart phone consumers (Gen Y consumers). If Steven Jobs of Apple Inc. decides in 2010 when the company's contract with AT&T expires that it is in the best interest for the company to pull out of AT&T and convert to the Verizon service it would cause a dramatic uprise (**Phillip Ellmer-Dewitt**). According to Gene Munster, senior research analyst for investment bank, that he believes "there is a 70 percent chance that Apple will launch a new iPhone with Verizon in 2010" and also believes the middle of 2010 this will occur(**Jim Dalrymple).** Not only would this conversion have an effect on the companies: AT&T, Verizon and Apple, the smart phone market but have a major impact on Gen Y consumers.

("AT&T Comes in Last in Consumer Reports Study That Surprises No one" by Adam Frucci; See attachment 1 for more details)

**Advantages of the iPhone** Steven Jobs' Apple iPhone is one of the most unique innovations this century because its much more than just a mobile calling device but a complete breakthrough in the way human beings view a 'cellphone'. The iPhone offers the consumer the ability to download store and enjoy music, videos and TV shows (which act just like the Apple iPod). The iPhone also allows the user to search the internet, keep updated with email, get maps, and GPS,conveniently on its 3.5 inch screen and 3G network. However, what really sets it apart/aside from other smart phones on the market is its incredibly advanced multi touch multiple viewing screen, ho"intelligent" keyboard enlarges letters as you type, corrects your spelling and punctuation, and even goes the extra mile to suggest word choices. The iPhone keyboard overall makes it easy and incredibly fast (**Apple Inc**). Also, the world of applications is a fun/entertaining/productive/organization feature to the mobile device, which you can choose and get a hold of thousands of different applications with just the tap of a finger. Whether your looking for applications for entertainment, organizing your busy work schedule, keeping track of your caloric Implications 3 intake, or finding the closest restaurant-theres an application. With all these features, it makes it tough to compete with the iPhone.

**iPhone on the Verizon Network** In order for the iPhone to be available through the carrier Verizon, a new phone would have to be created in order to be compatible with Verizon's CDMA2000 technology and also AT&T's W-CDMA (UMTS) technology. According to CNN, Apple is considering creating a "world mode" phone, using a new hybrid chip from Qualcomm (Phillip Ellmer-Dewitt). This way the consumer can have access to the iPhone no matter what carrier. "With one phone that works on both types of networks, any differences between the two will be more apparently tied to the provider's network rather than to an iPhone model itself (Michelle Lentz).This would cause an increased competition between the two carriers. "While Verizon is hoping to get a piece of the iPhone pie, AT&T must be fighting equally hard to keep the ball in their court (iPhone Switching to Verizon Wireless)". The Verizon network has many advantages over AT&T, biggest and most important being the coverage. The Verizon carrier is known for being 'America's most trusted network' with its extreme reliability, in which the picture clearly displays ("Theres a Map for That"; see Attachment 2).

IPhone users frequently complain about the AT&T network concerning its slow and congested data network and frequently dropped calls due to lack of service where as you have the Verizon network with the reputation of being a fast passed, reliable, and extensive service provider (Dwight, Silverman). Annual wireless customer satisfaction reports conducted in 2009 by Consumer Reports in which surveyed 500,000 consumers in 26 different cities revealed the sever limitations of the AT&T network, and the superior satisfaction of the Verizon network. Out of 26 different cities, 19 cities AT&T had gotten the lowest ratings concerning customer satisfaction in which it also had low rankings with voice connectivity and customer support aspects. The report also expressed how 33,000 out of 50,000 said they had "at least one major complaint against the AT&T carrier".Where as the report uncovered that customers are more than satisfied with the Verizon rival, in which it had showed a high ranking in nearly all categories (Amandeep Dhaliwal).

Implications 4 **Effect on Gen Y** With today's advancement in technology, it is no shock to note that gen y consumer have a dire need for speed (while still having that efficiency aspect). With this idea at hands the combining of Apples top of the market iPhone and 'America's most trusted network', could be just what consumers are seeking. If Apple does decide to combine forces with Verizon, Roger Entner, head of telecom research for Nielsen had told USA today, "Apple would gain access to its 80 million customers. While a few may already have an iPhone the bulk don't. Apple would likely maintain ties with AT&T. The biggest winners, by far, would be consumers" **(Leslie Cauley).** For the consumers can have an iPhone and choose the carrier of their choice (whether it be Verizon or AT&T), the consumer is left satisfied no matter what. Etner wraps up the situation perfectly, saying, "It would finally give consumers choice, and choice is a good thing." This would greatly affect Gen Y users, for the iPhone is most attractive to this group. Also, the bulk of those who have been disappointed with AT&T service can now switch over without having to give up the desired iPhone or in other situations those who are constrained with Verizon can now join the iPhone world. It is a win-win situation, and this would be a huge and beneficial investment for gen y users and Apple.

Implications 5

**Recommendation** The new and advanced Smart phone, the iPhone introduced by Apple, has transformed the way consumers' use and view hand held mobile devices. The iPhone is not only a mobile device, but also an ipod and a hand held computer in which offers thousands upon thousands of unique applications to attract the interest of any user. However, there is one major downfall to the iPhone; its mediocre service carrier, AT&T. This report recommends that Proximity clients should be aware of this rumor and perhaps contemplate the idea of withholding the purchase of the iPhone(AT&T) until the iPhone for Verizon is launched in 2010. If the iPhone is launched under the Verizon network this will be a major advantage for gen y. The top of the market Smart phone, the iPhone is one of the most attractive and sought after innovations, which offers top of the line mind blowing features and technology and by making it attainable under the Verizon network would make a common dream come alive. Advantages such as:

·Consumers can have the iPhone under America's most trusted network, Verizon (speed, efficiency AND reliability) ·Consumers finally have choice, in return leaves user satisfied( win-win situation no matter what) ·Access to a new iPhone with Verizon's advanced CDMA2000 technology

This would also cause increased amplitude of competition between the two carriers because the iPhone, no matter what carrier would have all the same features, the speed efficiency and reliability would be the only differentiation.

Implications 6

**Attachments** 1. This chart expresses the ratings of the overall quality of cell phone services conducted by Consumer Reports in which Verizon took the number one best server and AT&T ranked lower, in the number four spot. 2. This picture is of the United States which shows the service coverage of the AT&T network and Verizon network(3G network). This picture was also notorious ad/commercial, "There's a Map for that Campaign" created by Verizon to bash AT&T, in the bash its AT&T rivals.

Implications 7

**References**

Apple Inc.(2009). iPhone. Retrieved on 2009, Novemeber 20 from @http://www.apple.com/iphone/why-iphone/

Cauley, Leslie. USA Today. "IPhone and Verizon Consider iPhone Deal" (2009, April 28). Retrieved from [|http://www.usatoday.com]

Dalrymple, Jim. CNET News." Analyst: Verizon is the iPhone's Next Big Feature" (2009, December 9). Retrieved from [|http://news.cnet.com].

Dhaliwal, Amandeep. Topnews. "Survey: AT&T Middling at Best in Customer Satisfaction"( 2009, December 2). Retrieved from http://topnews.us

Ellmer-Dewitt, Phillip."Rumors, an Iphone in 2010"(12, November 2009). Retrieved on November 20, 2009. @http://brainstormtech.blogs.fortune.cnn.com/

Frucci, Adam. GIZMODO. "AT&T Comes in Last in Consumer Reports Study That Surprises Noone". (2009, Decemeber 2). Retrieved from http://gizmodo.com

Google Images. "Theres a Map For that Campaign". Retrieved from http://images.google.com

iPhone Switching to Verizon Wireless( 2009, April 27). //GSMdome.com//. Retrieved November 20, 2009. [|http://www.gsmdome.com]

Lentz, Michelle. iPhone on Verizon (2009, November 8) Retrieved from .@http://bub.blicio.us/iphone-on-verizon-rumor-verizons-new-etf/

Silverman, Dwight. "What Its like to use the iPhone 3G on Verizon's Network". (2009, June 15). @http://blogs.chron.com/