Research in Motion (RIM) is the company that makes Blackberry phones. Blackberry mobile phones are going downhill. The phones that sell the most are iPhones and Androids. These are dominating the world market. This is the future of the world market as well. So people are going for these phones and they don’t like Blackberries as much.
RIM is losing jobs and revenue as well. There have been 5,000 layoffs for this company because the company is losing money. Their net sales went down by 42% a year ago to $2.8 billion. The CEO Heins chose to cut costs and downsize but this is not enough for the company. It must find innovative ways to sell their products in the global market. The CEO is not doing the best job as well. He needs to find creative ways to sell the product to gain more of a market share in the phone market.
The Blackberry was first a business phone. Many business people, lawyers, consultants and other people who are in organizations had Blackberrys. This wasn’t enough for the RIM so they had to expand to the regular consumer. They made it more user friendly so the average person could use it, not just corporate people. They gave the phone a music player which most people do not know about.
They should have set up an office inSilicon Valleybecause this would have given them an opportunity to see what other companies are doing. It would have made them compete more with these companies.
In 2010 they set a plan to make a touch-screen rival to iPhone. They came up with the Blackberry Torch which did not do too well. RIM needs to learn to discontinue products and make new ones. Many tech companies have bad products but they are discontinued and the company learns from their mistake. Companies such as Microsoft had Zune and Apple hadNewton. Both of these companies did not do well but they reset and brought out better products. RIM did not make a new innovative product. Their product called playbook did not do too well and they lost a lot of money on unsold playbooks.
There is still hope for RIM to succeed though. They have over $2 billion is cash on hand. The bottom side is that the cash can go away due to costs. Also many of the people who left blackberry for iPhone are not coming back anytime soon. So they have to find innovative ways to get people to subscribe to Blackberry.
He should invest in developing countries as well because there would be a market for the phones. The price is what is most important to know. There is an elite in the developing world that will buy the phone because they need it. The problem will be setting up the infrastructure in the developing world to make it be efficient.
Malls are going downhill inAmericaright now. Many malls are shutting down and newer malls aren’t coming up anymore. Out of 2,000 large malls, 400 are closing down because they are not making enough business. There are also many vacancies within the malls because not enough people are opening up stores there.
The retail business is going downhill because too many people are using the internet to shop for goods that they want. Companies like Amazon, Etsy, and Ebay are using E-Commerce to sell products. The goods will be shipped to your home. This is more convenient for people because they do not have to go out when they can have items shipped to them. Instead of going to the actual mall, they will look for it online. They will save money as well because there are deals online that you cannot beat. Malls usually get their money from discretional spending. That is the money you have after you pay your bills. Since this is in a depression, there is less money to spend so people rather save online. People are also spending their money at Wal-Mart and Target where they can save money. The full price department stores cost too much money and people cannot afford it. Also malls have non essential items that are not being bought as much due to the recession.
By using e=commerce, you may save so much money that the shipping price and time it takes to arrive at your home is worth it. But there are problems with shopping online because it is not as user friendly. You cannot try on you’re a purse to see how it looks or you cannot try on an outfit to see if it fits you well. You have to rely on thee statistics given to you by the company that sells the products. Sometimes this information may be wrong. So you will buy the product and it does not fit you so you would want a refund.
Malls are using innovative ways to bring people to the malls now. Since traveling is becoming too expensive people have the “staycation” where they travel in their city and experience a local place. So the malls are opening up more restauraunts within the malls so people can visit. This is driving traffic to the malls in order to get people to buy from the retail stores as well. So there are also ice skating rinks, rock climbing, arcades, bowling alleys, movie theaters and other fun excursions that malls are trying to bring back. You can meet people at malls as well so it is more of a social experience.
Malls are not going anywhere but they will be drastically reduced to will look different. It will be more social friendly to attract people to come and have fun. There will be innovative ways to attract people to come and spend their time.