Microsoft’s message to RIM
Research In Motion, the producer of the popular Blackberry devices and the market leaders in mobile e-mail services are being challenged by Microsoft’s announcements of four upcoming devices to be shipped with its new "push" e-mail function built in.
Applying Barney’s VRIO framework on RIM to analyze the strengths and weaknesses of RIM based on it’s resources and capabilities, we have to first answer the question of value. Was their push email services valuable and is it still so? To my understanding of the question of value, I would argue that is was indeed and still is. They were the market leaders as the article indicates which proves that they saw an opportunity and took full advantage of it. Analysts told the Journal that while they expect Microsoft to rapidly gain market share in the mobile e-mail sector, they don't necessarily expect it to catch up with RIM's Blackberry offerings anytime soon. This expected inability comes despite the fact that Microsoft is penetrating the market by offering lower costs, and in addition to major wireless service providers launching Microsoft’s new push e-mail service (including Vodafone Group, Bell South, and AT&T). I believe that this proves that RIM’s Blackberry does in fact give the company a competitive advantage in the market.
The second issue we have to address is whether RIM’s Blackberry push e-mail service is rare or not? It is obvious that it was rare and gave them ultimate advantage over any other software producer until Microsoft’s announcement of it’s new services.
The third question which is the most important to address is the question of Imitability. The article clearly indicates that Microsoft Corp. was not able to cheaply and easily offer the push e-mail service which gives the push e-mail service in Research In Motion’s Blackberry a competitive advantage regarding the cost disadvantage Microsoft faces.
The article shows that the level of competitive advantage that a company enjoys is not a constant factor and that it may increase or decrease over time. Whereas RIM once enjoyed considerable competitive advantage in the mobile email sector, that strength has been lessened by large companies like Microsoft wanting to enter the market and control a greater segment of it.
http://money.cnn.com/2006/02/13/technology/microsoft_blackberry/?cnn=yes\b
Applying Barney’s VRIO framework on RIM to analyze the strengths and weaknesses of RIM based on it’s resources and capabilities, we have to first answer the question of value. Was their push email services valuable and is it still so? To my understanding of the question of value, I would argue that is was indeed and still is. They were the market leaders as the article indicates which proves that they saw an opportunity and took full advantage of it. Analysts told the Journal that while they expect Microsoft to rapidly gain market share in the mobile e-mail sector, they don't necessarily expect it to catch up with RIM's Blackberry offerings anytime soon. This expected inability comes despite the fact that Microsoft is penetrating the market by offering lower costs, and in addition to major wireless service providers launching Microsoft’s new push e-mail service (including Vodafone Group, Bell South, and AT&T). I believe that this proves that RIM’s Blackberry does in fact give the company a competitive advantage in the market.
The second issue we have to address is whether RIM’s Blackberry push e-mail service is rare or not? It is obvious that it was rare and gave them ultimate advantage over any other software producer until Microsoft’s announcement of it’s new services.
The third question which is the most important to address is the question of Imitability. The article clearly indicates that Microsoft Corp. was not able to cheaply and easily offer the push e-mail service which gives the push e-mail service in Research In Motion’s Blackberry a competitive advantage regarding the cost disadvantage Microsoft faces.
The article shows that the level of competitive advantage that a company enjoys is not a constant factor and that it may increase or decrease over time. Whereas RIM once enjoyed considerable competitive advantage in the mobile email sector, that strength has been lessened by large companies like Microsoft wanting to enter the market and control a greater segment of it.
http://money.cnn.com/2006/02/13/technology/microsoft_blackberry/?cnn=yes\b
posted by sahli at 4:51 AM
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