BlackBerry: Enhancing market penetration in UK
Second biggest Smartphone handset provider in United Kingdom:
BlackBerry is the second leading smartphone manufacturer and distributor in the United Kingdom with market share of 10% in July 2011. The brand is wholly owned by Research In Motion, and publicly listed on the Toronto Stock Exchange with an employee base of 17,300 in July 2011. The company offers core smartphone brand "Blackberry", and enterprise server and internet services across 175 countries worldwide. Research In Motion generated net revenue of US$19.9 billion, with year-on-year growth of 33% in 2010-2011. United Kingdom is the third leading market space for BlackBerry accounting for 11% of group revenues.
European smartphone shipments witnessed 99% growth in Q4 2010:
The United Kingdom smartphone market is stipulated to reach volume sales of 13 million in 2011. Smartphone penetration stood at 28% across one of the largest markets for BlackBerry in Western Europe. Smartphone shipments grew by 77% across Western Europe in Q1 2011. Smartphones accounted for 45% of the Western European mobile market space in 2011. Apple is the leading smartphone manufacturer in Western Europe with market share of 21%. BlackBerry boasts a strong market positioning with market share of 16.5% facing steep competitive pressures from HTC (16.5% market share) and Nokia (market share stood at 19.6%).
New product development and inorganic expansion core growth strategy:
In April 2011, Research In Motion launched BlackBerry PlayBook Tablet in Belgium, Austria, Luxembourg, United Kingdom and Spain (emerging markets for Blackberry accounting for 40% of group revenues). The company has aggressively expanded distribution of Blackberry Playbook across Europe and Asia in the past 2-3 months. Research In Motion has also acquired five assets in Canada and United States (i.e. QNX Software Systems, Tungle, Documents To Go and TinyHippos) to enhance competitive market positioning in core markets. The company acquired JayCut (video editing enterprise) in Sweden to improve brand positioning on long-term basis (July 2011).
Can RIM be the leading smartphone OS across United Kingdom and Europe in the next 5 years?
United States is the core market for Research In Motion, it has traditionally faced steep patent infringement lawsuits against NTP Inc and Dolby (primarily in 2011). Higher dependency on core market, i.e., North America is enhancing Blackberry to aggressively venture and improve market positioning in Europe. The parent corporation stock is trading at a four year low with shareholder value reduced by U$83 billion. In July 2011, the company reduced its workforce by 11% due to prospective losses in market positioning and share in Canada and United States. Can RIM enhance long-term sustainability in the UK and European smartphone market space over the next 5 years?