Upload
nguyen-tung
View
2.105
Download
0
Tags:
Embed Size (px)
DESCRIPTION
professional skill coursework
Citation preview
The Giraffe Group
Alvin, Archish, Mandy, Jacquelin, Minh, Tung
RESEARCH IN MOTION (RIM)INVESTMENT PROPOSAL 2011
CONTENT
• Executive Summary
• Company Overview and Competition in the Market
• Financial Analysis
• SWOT Analysis of Company Performance and Strategy
• Ethical Position
• Conclusion
• Recommendation
EXECUTIVE SUMMARY
• RIM is a multinational telecommunications company based in Canada,
founded in 1984.
• Most well known for the BlackBerry smartphone series.
• Ranked as the No. 1 fastest-growing company in 2009.
• One of the ‘Ten Best Companies to Work For in 2011’.
• Has good fundamentals and business operations.
• Highly recommended for potential investors.
COMPANY OVERVIEW AND COMPETITION IN THE MARKET
Marketing Mix – The Four P’s
1.Product
• Blackberry is characterised by its convenient communicating and
networking function
• The ‘BlackBerry Enterprise Server’
• The BlackBerry Messenger
• The trademarked QWERTY keyboard
2. Place
• Headquarter is located in Ontario, Canada.
• Branches worldwide
• Orders can be placed on the Blackberry website
3. Promotion
• RIM has a high budget for promoting BlackBerry
• 4. Price
DEMOGRAPHIC MARKET SEGMENTATION
• RIM BlackBerry focuses on enterprise consumers as their security
protection is reliable
• The ‘BlackBerry Enterprise Solution’ (BES) is the only smartphone system
“approved for use with restricted data Government departments and
organisations.”
• The popularity of its design attracts young users.
• The non-touchscreen feature is appropriate for elderly users.
GEOGRAPHIC MARKET SEGMENTATION
Geographic Revenue Mix
US58%
UK10%
Canada5%
Others27%
US39%
UK11%
Canada7%
Others43%
2010 2011
UNIT SALES
Research In Motion HTC Apple (iPhones)
Year 2009 2010 2011 2009 2010 2009 2010 2011
Revenue 9,090 14,593 19,907 4,786 9,234 13,033 25,600 47,100
Units sold 26 36.7 52.3 11.7 24.7 20.7 40 72.3
Unit sales 349.62 397.63 380.63 408.68 374.27 628.67 640 651.45
FINANCIAL ANALYSIS
Income Statement Analysis: Gross Profit and Net Profit
FINANCIAL RATIOS
RatioResearch In
MotionHTC Apple
Current Ratio 1.9 1.3 1.6
Liquidity Ratio 1.4 1.1 1.3
Gearing 0.1 0 1.5
RatioResearch In
MotionHTC Apple
Return On Assets (ROA)
20.5% 21.9% 22.3%
Price-to-Earnings Ratio
3.2 6.4 13.5
FINANCIAL RATIOS
RatioResearch In
MotionHTC Apple
Gross Profit Margin
46.4% 28.9% 42.2%
Net Profit Margin 16.01% 14.05% 23.95%
FINANCIAL RATIOS
SWOT ANALYSIS
Strengths
• Strong fundamentals
• Powerful brandings
• Excellent design
• Developer zone
Weaknesses
• Strong competitors
• Lack of creative applications
SWOT ANALYSIS
Opportunities
• Clientele expansion
• Advertising with famous people
• Asian focus
Threats
• Service failure
• New entrance and substitute
ETHICAL POSITION
Employees
• Free BlackBerry phones
• “Work, home and you”
• “Healthy @ RIM”
Society
• Significant role in 2011 UK’s riot
• Personal privacy is highly
protected.
ETHICAL POSITION
Personal privacy and security
• Largely invested in new security
technologies
• Cause monitoring difficulties to
governments
Environment
• No external verification for data
on greenhouse gas (GHG)
emission
• Accused of not having a clean
electricity plan
• Did not set a target on reducing
GHG emission
CONCLUSION
Taking all aspects of the company into account, we believe that Research In
Motion Ltd has a very promising future. Although competition is very strong in
the telecommunications market, it has its own unique stance and clientele in
the market which will not be affected by developments of other companies.
We expect to continue seeing many BlackBerry users both in business and
personal.
RECOMMENDATION
Invest a significant amount of the portfolio in RIM and
buy their shares as soon as possible
BIBLIOGRAPHY
• http://money.cnn.com/magazines/fortune/fortunefastestgrowing/2009/snapshots/1.html
• http://www.eluta.ca/top-employer-rim