RIM Group Presentation (1)

8/2/2019 RIM Group Presentation (1)

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Group 6 : Iaroslava YegorovaAudom KhenWilliam Rhu


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Presentation Outline

Mission and VisionHistoryBusiness Strategy

R&DIssuesFinanceThe future & Play book


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Mission and Vision

At RIM we build wireless ground breakingtechnology. We pioneered push email, and madesmartphones before most people knew what a

Smartphone was. Today, feature phone users arerapidly aspiring and this transition is propellingour industry, and the adoption of the BlackBerry

platform.


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Research in Motion (RIM)

Canadian telecommunications and mobile device company

Started :small technology firm

Now: designer and manufacturer

of the award-winning BlackBerry

Smartphone, used by millions

Headquartered: Waterloo, Ontario

Employees:14,000

Founded by CEO: Mike Lazaridis 1984 CEO: Jim Balsillie


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Salaries

Michael Lazaridis , President and Co-CEO1.08M 3.23M

Mr. James L. Balsillie , Co-CEO1.08M 3.23M

Mr. Brian Bidulka ,CFO393.00K 642.00K

Mr. David Yach ,

Chief Technology Officer of Software539.00K

Mr. Donald Morrison ,COO

625.00K1.08M


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1990s

Producing compact wireless radio modems

Pave way to software development for wireless e-mail&computers.

1996

Shipped first inter@ctive pager ( Two-way pagers)

1998

Begins trading on Toronto Stock Exchange (TSX: RIM)

1999

RIM Trades in New York Stock Exchange ( NYSE:RIMM)


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2000

Revenue doubles

2002

Involved in lawsuits concerning patent infringements

2003Word of mouth marketing :Oprah Winfreys New Favorite Thing

2004

1 million subscribers in 30 countries

20051 Billion in Revenues


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2006Sold 4 million BBsIntroduces award winning PearlDifficulties raising money :

Paid 612.5 Million to NTP to settle infringement issue

2007Introduces Award winning CurveDespite the great market crashRaises 3 Billion in Revenues

200814 million subscribers25 million BBs6 billion in revenues

2009

50 million phones sold,11 billion in revenues introduces storm Co-CEO Jim Balsillie resigned

was accused of backdating and re-pricing stock option


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Issues

2002 Patent infringement

Suit on Patents on software and hardware that powered

the Blackberry

threatened reputation

2006 that NTP accepted RIMs offer to pay 612.5 million

and settle the issue.

2009 backdating and re-pricing stock options

Backdating and re-pricing stock options using dates

when the RIM Share was low

Co-CEO Jim Balsillie pay 5 Mil. in penalties & resign

Cost the company 62 Mil for possible losses


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Business strategy

Broadening Horizons:

Inovating

Highring competent workers


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Research and Development

In 2010 2.87 Billion spent in R&D(20 % of its total revenue )

76% increase from 2006

High competition

Marketing Strategy

Emotional Selling Crack Berry

Leverage: Large Carriers do selling

Shifting

First: Blackberry marketed its features.

Then: the message shifted to become about Business SuccessThat campaign merged into one about Life Success

Celebrities' use BB

Sell the brand, not the Product


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competition


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Period Ending Feb 27, 2010 Feb 28, 2009 Mar 1, 2008

Total Revenue 14,953,224 11,065,186 6,009,395Net Income 2,457,144 1,892,616 1,293,867Total Assets

10,204,409 8,101,372 5,511,187Total Liabilities 2,601,746 2,227,244 1,577,621TotalStockholderEquity

7,602,663 5,874,128 3,933,566Total Cash $715,315 ($348,852) $507,254


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Financial Analysis

Current Ratio:Ability to pay off current liabilities

5812.65/ 2431.77= 2.39

Debt ratio:Ability to pay all the debt

2601.74/ 10204.40=0.25 = 25 %

Earnings Per Share:

incomepreferred dividends = 2,457.140= 4.42Number shares outstanding 557.33-1.46

Net cash Operating> Net income 3034.87> 2457.14


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New target of consumers:Younger people vs. Corporate usersAPPS= Apples success

Improve overall quality of phone

The Blackberry Tablet

The New thing in the market

Market now oversaturated

Should focus on making THE new innovative tech


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7 Inch Screen

New Software

Flash-capable


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Continue to create compact devices

Keep QWERTY Keyboard

Explore WiFi Possibilities

Improve BlackBerry App World


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RIM Group Presentation (1)

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