Analysis of Research in Motion Ltd

Research in Motion Limited is the company that is behind the manufacturing, designing and marketing of the BlackBerry Smartphone. The company also deals with developing software in the global market. The Company is abbreviated as RIM. RIM has it's headquarter in Canada in Ontario. Rim is one of the notable communication companies not only in Canada but all over the world. The company presence is felt in many countries where the company diversifies it operations (Sweeny, 2009).

Marketing the e-commerce business

E-commerce sometimes referred to as e-marketing or e-business is one of the channels that the company uses to market its products that include BlackBerry Smartphone and software developed by the company. The company also sells its licenses over the internet. E-commerce is the emerging trend in the market where the company sells the product over the internet. The e-commerce offers numerous benefits to the RIM Company. Some of the benefits that RIM Company enjoys as a result of engaging in e-commerce are that the company is able to penetrate the global market with much ease. E-commerce ensures that the products that are supplied by the RIM Company are accessible to the customers regardless the physical distance the separate the producers and the consumers (Sweeny, 2009).

E-commerce therefore ensures that the products that are supplies by the RIM Company are available to the customers regardless the physical distance separating the company and the customers. This gives the opportunity for the company to market its product without having to incur a lot of costs. The costs of warehousing the products in the market are reduced as the company supplies the products when they are needed by the customers. The operation costs therefore have being reduced through the use of e-commerce (Kurtz, MacKenzie & Snow, 2009).

E-commerce also helps the customers in other countries to have the products that are produced by the RIM Company that would be difficult to be available in the local markets due to the costs that is involved. The customers therefore are able to access the products that are not produced in their country. E-commerce therefore ensures that the company has created a strong brand name in the market. Since is the case as the company has the chance of advertising the products it sells through the internet that would be costly if the company would use the conventional ways of sale promotion. The RIM Company therefore saves a lot of resources that would be spent in hiring the workforce to sale the products on behalf of the company. The e-commerce ensures that some products supplied by the RIM such as software are downloaded directly from the internet. This helps to saves the cost that would have being incurred in shipping the products to the market (Kurtz, MacKenzie & Snow, 2009).

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There are also demerits that are associated with the RIM Company adopting e-commerce in selling of its products. The customer's confidence have not being won when it come to purchasing products offered through the e-commerce. The customers are more satisfied with the product and consequently make purchases when they are given the opportunity to look at features of the product that are supplied by the company. Therefore the company have to work extra harder to convince the customers that the products that the company offer s through thee-commerce is genuine and that the customers need not to worry about the quality of the products offered.


Another demerit that has being associated with the e-commerce is the issue of fraud. The customers have being swindled their hard earned money by the fraudsters in the e-commerce. Therefore the fear of the customer being defrauded remain an issue that the RIM Company need to address to create the customers confidence in order for them to make purchases of the products that are offered through e-commerce. The company has reported piracy cases that have being perpetrated through the use of internet. The company therefore has lost revenue due to people accessing their products illegally over the internet through hacking.

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The legal environment is one of the external business environments that affect the operation of the business. Legal environment refers to the government regulations that the company should adhere to make the operation lawful. The breaking of the law can lead to the company incurring huge losses through court suits and worse still, the company may be declared illegal and therefore closed. The company has no control over legal environment that the business find itself in therefore it has to work hard to conform to the laid down procedures or the rules in the market.

The company deals with the production of the software. The companies that deals with the manufacturing and selling of software are mostly faced with the court suits as a result of copyright infringement cases. Copyright infringement cases are not new to the RIM Company. Recently, the RIM Company was sued by NTP Inc. that it had infringed the copyright rights on wireless technology that was owned by the NTP Inc. After a tedious court cases, that RIM was forced to pay $ 614 million in fines in 2006. Before the duct settled, RIM was also sued by the Visto Corp again that it had infringed copyrights law; the case is yet to be settled.

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Ethical environment

Ethical environment is yet another business environment that affects the operation of the RIM Company. RIM Company being a communication company has the duties to play to the customers and the employees of the company. The company has the responsibility of ensuring that the product that it produces is of high quality and it has no effect to the customers on any way. The RIM Company has the responsibility of ensuring that the customers are given the products produced by the company at reasonable prices. The company should not engage in the decisive marketing campaigns were the company misrepresent the facts of the product to make it attractive to the customers.

The RIM Company has the role to play to its employees. The company ensures that the employees work in secure environments. The employees of the company are remunerated well for the services they offer to the company as compared to other telecommunication company in Canada. The company also provides its employees with competitive benefits such as medical insurance and other benefits (Mazutis & Richard Ivey School of Business, 2008).

Historic balance sheet

In the year 2009, RIM Company's capital expenditure increased tremendously.  The capital expenditure recorded in the year 2009 were $ 843 million which was high as compared to $ 350 million recorded in the year 2008. The company in the year 2009 had no significant debt; the expansion was financed by the retained earnings from the profits that were recorded in the company.          

Historic Cash Flow Statement

The cash and cash equivalents that were recorded by the RIM Company in as at the end of year 2009 totaled to $ 2.24 billions. In the cash statement this were recorded as cash, long term investment, short term investments and the cash equivalents.

Historic Income Statement

The RIM Company recorded 82% growth in revenue to record a $ 11 billion in revenue compared to the $ 6 billion that was recorded in the previous year. The growth in revenue can be accounted by the large number of BlackBerry they sold in the world. More than 26 million Blackberries were shipped in the year 2009. The growth in revenue in the RIM Company also the saw rise in the number of employees hired by the company; the number of employees rose from 8400 in 2008 to 12000 employees in 2009 (Mazutis & Richard Ivey School of Business, 2008).

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