Executive Summary
Wireless cell phone services industry is an integral part of the modern society as far as communications acquire the constantly greater role in the human life and the operators of the wireless connection offer the fastest services at the cheapest price. Research in Motion is one of the world’s leading software providers for mobile communications industry developing its network and having numerous branches in Canada, North America, and Australia. The history of the company, although not rather long, exemplifies the proper way of development that allowed Research in Motion to become the world’s leader within 25 years of its existence. The financial statements of the company also report the gradual development of Research in Motion with the respective annual profit increases, sales rates growth, etc. Being a progress oriented company allows Research in Motion to consider the demands of the customers worldwide and be able to conform to those demands on any market possible.
Introduction
Wireless cell phone services industry is an integral part of the modern society as far as communications acquire the constantly greater role in the human life and the operators of the wireless connection offer the fastest services at the cheapest price. Today’s market of the cell phone services is rather competitive as far as such giants as Verizon Wireless, AT&T, Sprint Nextel, etc. fight for new customer bases. In this market, Research in Motion has recently managed to become one of the most influential suppliers of software and wireless mobile devices. Having developed from a local Canadian telecommunications company into one of the largest businesses of today, Research in Motion possesses the image of the reliable business partner whose reputation has never been damaged by any cases involving Research in Motion as an infringer of the Patent Law. The following paragraphs focus on the history of Research in Motion’s development and present the picture of the current state of affairs in the company.
Background
History
The very beginning of Research in Motion history is 1984, the date when the company Research in Motion was founded by Mike Lazaridis and his friend Jim Balsillie (RIM, 2009). Dealing with the creation of innovative and efficient wireless communication devices for mobile operators, this company was first involved in the work with Ram Mobile Data and the Eriksson Company as their partner in the development of the Mobitex Wireless Data Network (Research in Motion, 2009). The year 1995 was the time when the company under analysis started being financed in a private way. In other words, private and institutional investors’ funds made Research in Motion into a privately-owned enterprise (RIM, 2009). Research in Motion as one of the most potentially developed Canadian companies obtained the substantial funding from Working Ventures Canadian Fund Inc., which amounted to a $5 million investment. The company was also financed by the IPO institutions which helped it raise $30 million more (Research in Motion, 2009). At the turn of the century, Research in Motion started its campaign of the public offering of its shares on the Toronto Stock Exchange. Interactive Pager 950 developed in 2000 was the first major advance the company coped within its independent history (RIM, 2009).
Founders
The actual founders of the company under consideration are the already mentioned Mike Lazaridis and his friend Jim Balsillie, who dedicate their lives to the sphere of wireless technology and are not taking the leading positions in Research in Motion’s organizational structure (RIM, 2009). 2008 was the year when the company under analysis was admitted as one of the most influential Canadian companies and even entered the list of “Canada’s Top 100 Employees”. In 2009, moreover, the global initiatives of the company Research in Motion started being developed. It was first of all reflected in the announcement of the plans to launch the training centers and production premises in Australia and other regions of the world (RIM, 2009). Currently having 12, 000 of employees, Research in Motion also takes one of the most prominent places in the wireless communications market. Its performance allows it to stand the competition with such companies as Apple Inc., Seven, Nokia, Samsung, etc. and be a rightful competitor for them (Research in Motion, 2009).
Major Products
The major products and services provided by Research in Motion in the initial years of its development were limited to the wireless communication devices. Interactive Pager 950 was the first step in the company’s entering the Canadian and, later, the American market. In more detail, Research in Motion was the first company to ever introduce the number of wireless devices able to operate in CDMA, GSM, and even Motorola iDEN (RIM, 2009). The joint name or this variety of devices is Blackberry, due to their form and color, and their major function is limited to giving assistance to office workers in any situation they might need help with memorizing professional or personal data, names, dates, etc (Research in Motion, 2009). Some other products offered include the Single Mailbox Integration device, Good Technology device, portable wireless e-mail devices, etc (RIM, 2009).
Major Current Services
As for the today’s state of things in the company, it continues its international development and progresses in the technological sense. In more detail, nowadays Research in Motion has its branches in Canada, United States of America, Australia, and plans to expand into many other countries (Research in Motion, 2009). The orientation on multiple markets makes the company invent more and more new devices and products. For example, in BlakcBerry technology is the most famous product by Research in Motion. They are equipped with e-mail and messaging systems, Web browser, organizer, and the systems of SureType and SurePress technologies (Research in Motion, 2009).
Financials
The financial aspects of the performance of the company Research in Motion are the most important side of the firm’s existence. Accordingly, the following figures can characterize the latest five years of the company’s performance. For example, the growth of the net income of the company is rather substantial from one fiscal year to another. Thus, in 2005 the net income of the company Research in Motion before taxes equaled $205.6 million, while already the next year saw the drastic increase of this figure to $347.7 million (Research in Motion, 2009a). Moreover, the year 2007 brought almost the triple net income as compared to the figures of 2006. The company under analysis earned $631.6 million (Research in Motion, 2009a). Such a progression of the net income growth can be explained by the combination of the successful strategic planning of the company aimed at satisfying the needs of the diverse customers by offering simple and sophisticated technology and the correct sales department work (Shankar, 2008). Further on, in 2008 the net income figures exceeded billion dollars amounting to $1, 293.9 million, while 2009, irrespective of the economic recession and stagnation, brought even the higher net income rates to the company – $1, 892.6 million (Research in Motion, 2009a).
However, as compared to its main competitors, Research in Motion still has space for perfection. The recent net income figures by Apple, Inc. equal $ 3,496.0 million in 2007, and 4,834.00, which is almost three times as large as Research in Motion had for the same period (Research in Motion, 2009a). Nokia Corporation net income figures are also rather substantial, even though financial crisis has affected them rather substantially. Nokia Corporation had $7,205.0 million, while 2008 brought only $3,988.0 to the company (Nokia Corporation, 2009). Nevertheless, the figures presented are still higher than the ones by Research in Motion, and this fact evidences that the latter still finds itself in the middle of the market but planning to compete with the most successful market players.
Conclusions
To conclude, today’s market of the cell phone services is rather competitive as far as such giants as Verizon Wireless, AT&T, Sprint Nextel, etc. fight for new customer bases. In this market, Research in Motion has recently managed to become one of the most influential suppliers of software and wireless mobile devices. Having developed from a local Canadian telecommunications company into one of the largest businesses of today, Research in Motion possesses the image of the reliable business partner whose reputation has never been damaged by any cases involving Research in Motion as an infringer of the Patent Law. The strategic planning of the company is focused on the long-term initiatives that would allow success in future, while the current services and goods offered by the company allow it to have considerable net income growth rates and customer base expansion levels.
Works Cited
Nokia Corporation. 2009, ‘Nokia Corporation (ADR)’, Google Finance, Web.
Research in Motion 2009, The Official Website, Web.
Research in Motion. 2009a, ‘Research in Motion Limited (USA)’, Google Finance, Web.
RIM. 2009, ‘Company Profiles’, Networkworld, Web.
Shankar, V. 2008, ‘Research In Motion Sales Forecast Exceeds Estimates’, Bloomber.com, Web.