Grim on RIM as they stayed on "Easy street"

In the early morning on Friday, March 25, 2011 I watched the pre-market sell-off RIM shares - - it wasn't pretty.  For the last 2 years I have used RIM, along with other giants in this space, as examples in my Global Market Strategy Course and how these big companies slowly find themselves on what Geoffrey A. Moore (Inside the Tornado & Crossing the Chasm) calls "Main Street" and I call "Easy Street".  "Easy" in the sense that RIM has long enjoyed their market dominance and continued to better the Blackberry device while others innovated around their core competency creating more mobile products, and dare I say "Apps".

If a company chooses to stay on Easy Street they risk losing their product dominance and should perhaps look to evolve to a services based organization, BUT that is not RIM.  Now they are playing catch-up; RIM playing catch-up?  This will require more R&D and much more marketing dollars if they are to regain their positioning; this will likely impact earnings.... to the downside. 

Some pundits said on Friday morning that RIM was "oversold" as the stock fell more than $6/share.  I do not believe markets (buyers) are wrong.  I buy a stock for its future return to me.  My question to ponder is:  "Has RIM entered the "commodity" space because mobile smart devices are now expected and their competitors are many, hence the price fluctuation to the downside or will their PlayBook be the answer?

Innovate, Innovate and Innovate some more...

Rhonda

Get a Strategy!

For years I have contemplated "blogging" and the notion of tossing my verbiage out there.  Well, here goes, my unfiltered opinion regarding business and strategy!

If you are a "not-for-profit" organization I say: "start rethinking how you connect with your customer", "Start thinking and strategizing like a for-profit entity" - - Wake Up!

Enjoy.

Rhonda