Situational Analysis

Strengths

As it has become increasingly clear there is a new, exciting, and booming market

for Tablets with over 4 million units1 purchased and more selling everyday. Research in

Motion has long dominated the business world and is widely known for their innovating

product, which has now sold over 60 million units worldwide, the BlackBerry. Now as an

addition build upon the BlackBerry a new product the Playbook tablet is set to hit stores

in early 20112 in an attempt to catch on to the tablet phenomenon. As this new market of

tablets has competitors lining up to release their own versions of the tablet RIM is facing

growing concerns of impeding competition in their steady enterprise market. They are

faced with the growing technological convergence of communications, entertainment and

business tools as well as the growing over lap of personal and business uses for these

tools.

RIM’s Palybook could potentially take a strong presence in the tablet market by

focusing on the strengths that RIM has already established and taking advantage of the

current gaps in Apple’s iPad model which currently dominants the tablet market. RIM

has established themselves as the front-runners in the enterprise world. This was

accomplished by meeting the extreme requirements of security and reliability needed to

govern an entire business network3. The Playbook simple builds upon an IT structure that

is already established in almost every major corporation by tethering to a BlackBerry on a

short range, secure link. The Palybook even protects the user by only temporarily storing

information from the BlackBerry and deleting the information when the connection is

severed. The Playbook does not require any additional software or services and meets all


 3

current enterprise security requirements. This will allow for an easy entrance into the

enterprise market.

Also to the Playbook’s advantage is the physical and technical options build in to

every model. It contains a 1 Ghz multi-core processor4, which allows for what RIM calls

“true multi-tasking”, meaning very smooth operating and the ability to have multiple

applications running at the same time. It features two HD cameras one on the front that is

3 megapixels and one on the back that is 5 megapixels5. This will allow for video

conferencing and video phoning when tethered to a BlackBerry. In addition to function

advantages are the USB port and an HDMI micro-port6 they will allow the Playbook to

easily connect to projectors, computers and other commonly used electronics.

What RIM is really banking on as a main advantage point for entering into a

commercial market is the fact that the Playbook with be able to read Adobe FLASH files,

something that Apple has stood against for quit some time. Being able to read FLASH

files means that the Playbook can side step the need for a numerous number of apps as

their functions could simply be streamed from the actual website. For example one does

not need a YouTube app if it is possible to actual go to the YouTube website7. The

Playbook will also have naïve apps, allowing it to be a stand-alone device, and to display

any apps from a BlackBerry. As for game and entertainment apps it features OpenGL,

which allows for high quality graphics8.


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Weaknesses

Although the above strengths make the Playbook sound very promising it does

have numerous weaknesses as well. The biggest issue is the lead in the tablet market that

Apple has with the iPad. Apple essentially created this new market. As well by the time

the Playbook does come out it will be competing against Samsung’s Galaxy Tab and the

Dell Streak, which are both already available. It is also speculated that by 2011 other

competitors will have tablets out such as, Cisco’s Cius, Hewlett-Pachard’s Slate, and

models from Toshiba and LG Electronics9. Currently iPad has 95% of the tablet market

and everyone else only has 5%10. While many analyst firms, such as IMS Research,

predict that the shares could change from 95% down to 80% or lower11. There is no

denying that Apple has secured a powerful brand-mind share and has already created

footholds in distribution and advertising.

While RIM has a strong hold on the enterprise world many of those people have

taken notice of the iPad and the versatility it offers. The iPad in fact does also meet the

security requirements of enterprises12 and has already developed many business related

apps. Except for some simple calendar and contacts apps13 it is not expected that the

Playbook will have any native apps developed by its release date, unlike the iPad, which

had 25,000 iPad apps available from day one. iPad currently has over 35,00014 apps can

run almost all of the 300,000 iPhone apps. Android the other competition operating

system has around 90,000 apps15 from their smartphones that will work on most of their

tablets. BlackBerry on the other hand has only around 25,000 and those apps can only

work when tethered to a BlackBerry since the QNX system cannot read these as

BlackBerry’s use a different non-compatible operating system.


 5

 A further issue arises with the Palybook’s apps, the new QNX operating system

is one that many developers are not familiar with writing in. Most app developers already

need to know; Java, Eclipse, Obective-C, Xcode, and both Android and iOS SDKS. They

will not want to have to learn another language that is not needed16. RIM also says that

the Playbook can read Adobe Air, while the BlackBerry and the Playbook both read

Webworks, thus dividing up there developers unto two different platforms17 for Playbook

apps. When considering if QXN was a good decision or not will require time to wait-and-

see. QNX is a well-known and time-tested platform in airplanes, trains, automobiles and

medical equipment18 but it has never been appropriated for commercial and enterprise

uses and it is uncertain how the market will react to it.

Many of the details of the Playbook are still unknown such as price points, battery

life, locations it will be sold and app capabilities. This makes it difficult to determine

exactly how the market will react to those facts being released. A few people have

speculated that the 8GB, 16GB, and the 32GB will sell for $399 (US), $499 (US), and

$599 (US) respectively19. This also brings up the issue that iPad offers a model with

64GB of memory. That’s twice as much as the Playbook and iPad models starts at $499

(US)20 with more options. Android-based Tablets like the Galaxy are starting at $399

(US)21 and both of these tablets offers 3G networking and tethering to their smartphones.

The Playbook, unlike the iPad or the Galaxy Tab, does not offer 3G cellular

networking22. RIM has alluded that they may provide this service in the future, but no

until the second half of 201123, thus missing the early boat on the appeal of this service.

This means there is no additional revenue stream for cellular providers and that they most

likely will either not carry the Playbook or are not likely to focus on promoting the


 6

Playbook. It is also unclear of who at this time is going to sell the Playbook and since it

only works with BlackBerrys it does alienate itself from anyone with a different product.

This will hurt the commercial segment for them as most of these people have iPhones or

Android smartphones.

The Playbook has a 7 inche screen, this is 3 inches smaller diagonally then the

iPad. This actual means that the Playbook is 45% of the size of the 10-inch iPad. Apple’s

CEO Steve Jobs has made it quite clear that his company and himself believe that is

greatly reduces the efficiency of the use of tablets and has declared that all 7 inch tablets

will be “Dead-on-Arrival”24. With this reduction of size, options, and not that much

difference in price, Job’s firmly thinks that consumers will prefer the iPad. This

confidence in iPad could shift to the consumer world and cost RIM potential sales and

entry into the consumer tablet market.

Opportunities

This biggest opportunity that RIM can use to its advantage is the already well-

established relationship they have with the enterprise segment worldwide. The Playbook

is ready to go on any BlackBerry Enterprise Server as soon as it’s out of the box25. This is

great for IT staff since it means no extra work for them to get it integrated into their

existing systems. The enterprise structure is notoriously slow for approving and adapting

to new technologies and frameworks26. If enterprises were to adopt iPads they would

have to develop a major re-working of these systems to find ways to incorporate non-

BlackBerry operating systems, which tend not to communicate well with each other.

Android tablets don’t even meet enterprise security requirements27 so they are not even a

threat to RIM’s enterprise consumers..


 7

 RIM is also taking the offence to try to enter into the consumer tablet market by

promoting the weakness that the iPad has exposed. Those are expressed in the strengths

section of this analysis. With many of the companies trying to jump of the tablet

bandwagon RIM already has a strong mind-share from BlackBerry and could manage to

win over many consumers with the high operating speed and quality of the Playbook.

While the Galaxy Tab is they only tablet currently out that offers similar options they

operate on the fragmented Google system Froyo that Android themselves recommended

not to be used for tablets28. With better operating systems coming soon many feel a wait-

and-see approach is best for now29. The Dell Streak, another Android tablet, is only 5

inches and offers fewer features than any other tablet and is too similar to the size of a

smartphone to be worth buying. Many felt it was an embarrassing attempt to jump

quickly into the tablet market30.

With the growing tablet market and many people hold off until competition is in

full force RIM has a good chance of taking a share of the tablet market. At this stage

most company’s tablets are simply vaporware31, more an idea then an actual product.

With the strong relations to the enterprise world and many praising features for the

consumer world, the Playbook looks promising.

Threats

One of the biggest questions on most people’s minds is whether or not the

consumer market will pick up on the Playbook. There have been preliminary problems

such as technical delays forcing RIM to miss the holiday season launch that they had

originally proposed. The bug-ridden processor proposed by Marvell caused the delay and

RIM has now decided to work with Texas Industries32. While in the long-run it may have


 8

been wise to make sure that the processor they do use is fully functional this switching

around has some people doubting RIM’s planning. Apple has already planted other

doubts as they infringe into the enterprise world that RIM needs to protect33.

If iPad does manage to successfully steal away the enterprise sector it could mean

then end for RIM. iPads are being proposed to be incorporated in schools34, hospitals35

and governments36 in addition to everyday business. While California is among the very

first to have iPads in hospitals and schools it was the Saskatchewan Government that had

it’s first iPad meeting on November 12, 201037. As RIM and other competitors are still

solidifying there designs, apps, distribution and advertising, Apple has already entered

both enterprise and Consumer markets strategically placing themselves in very visible

and powerful positions.

Another common concern is the positioning of the Playbook into a duo-market.

Playbook is not something that inspires confidence in reliability to someone in a

corporate industry38. Similar to the idea of watering down the idea of quality in a product,

such as selling a Canadian Goose coat at Wal-mart39, the idea of a consumer promoted

product detracts from the dominant ideology that RIM is the ultimate business product

innovator. In addition to technical delays, strong lead from iPad and doubts about the

Playbook’s professionalism are issues of competitors offering the same options and more.

iPad is planning on launching the iPad 2 in early 2011. While it still won’t be able

to have FLASH on web viewing they have said that they will open up to FLASH based

apps and will be addressing issues of cameras, multi-processors and other aspects

currently lacking in the iPad 140. Another issue is if the vaporware products of

competitors actual are superior to the playbook and offer better use for either major


 9

segment. It is expected that at least six competitors will be releasing their tablets in

201141. While it is suspected all of these non-iPad tablets will only be 7 inches and some

people like Steve Jobs feel that they would be “tweeners”. Meaning that they would be

too large to compete in the smartphone market and too small to compete against the

iPad42. Some people may simple not like the current BlackBerry model. It is speculated

that RIM might actually change their current BlackBerry operating system to QNX43.

With many unanswered questions and offering a not so differentiated product the

Playbook might just not take to consumer and success for RIM is dependent on Playbook

being a hit in the consumer market44.


























































1
ReadWriteWeb

2
Globe
and
Mail
(Kim
and
Askor)

3
CERT

4
Infoworld

5
Mobile
in
Canada

6
Mobile
in
Canada

7
ZDnet
(Diaz)

8
Gizmodo

9
International
Business
Times

10
ReadWriteWeb

11
Mobile
88

12
Infoworld
(Gruman)

13
Infoworld
(Gruman)

14
Macworld

15
Macworld

16
Techcrunch

17
Techcrunch

18
ZDnet
(Dignan)

19
Mobile
Magazine

20
Neowin

21
Android
SPIN

22
CNET
Asia
(Chang)

23
Information
Week


24
Macworld

25
Maketing
(Matt
Bruns
@
TechCrunch)

26
CNET
Asia
(Chang)



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27
Infoworld
(Gruman)

28
Macworld

29
CTV

30
Infoworld
(Bradley)

31
Inforworld
(Bradley)


32
ZDnet
(Diaz)

33
ZDnet
(Dignan)

34
ParentCentral
(Jones)

35
Mashable
(Indvik)

36
The
Next
Web
Canada

37
The
Next
Web
Canada

38
Techcrunch

39
Principals
of
Marketing
Class,
Paul
Finlayson.

40
International
Business
Times.


41
Infoworld
(Gruman)

42
Macworld

43
Gizmodo

44
Crave,
CNET
Asia,
(Doicart)



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