Fall of Rim

In: Business and Management

Submitted By TroyHarris
Words 1028
Pages 5
In 2010, Research In Motion (RIM) was a leader in the Information and Communications Technology (ICT) sector. Founded by Canadian Businessman Mike Lazardis, born in Ontario, RIM quickly became a chief innovator and manufacturer within this sector. RIM was founded by Mr. Lazardis in 1984, after he dropped out of University two months before graduation (McGraw-Hill 2010). In the financial year of 2009, RIM generated revenues of approximately US$11 billion (McGraw-Hill 2010).
Since 2010, numerous changes took place at RIM in order to try and return to being the dominant leader in their market. There have been two CEO changes as firstly Thorsten Heins replaced then joint CEOs Mike Lazardis and Jim Balsillie in January 2012, only to be replaced himself less than two years later by John Chen in November 2013 (Blackberry Press November 2013). Senior positions such as Chief Operating Officer and Chief Marketing Officer as also seen changes during this time. This clearly shows the sign of an underperforming or even a declining business that needs such drastic changes to try and grow or even to stop the decline.
RIM also decided to change its trading name from Research in Motion to Blackberry in January 2013 by then CEO Thorsten Heins (Blackberry Press January 2013). This was a clear ploy in trying to maximize the launch of their new Blackberry 10 product.
The amount of employees once employed by Blackberry as also diminished due to the high amount of loss the company was earning. The biggest action of staff reduction came in September 2013 when they announced approximately 4,500 employees would be released (Blackberry Press September 2013).
Currently in today’s economy, Blackberry is no longer the force it once was. According to Statista, Blackberry revenues plummeted from a high of US$19.9 billion in 2011 to US$6.8 in 2014 (2015). That’s a reduction of 66% in 3 years…...

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