Deja vu as RIM mulls splitting the company and HTC pulls ends its South American samba.
The proposed split of phone operator Research in Motion (RIM) and HTC’s Brazil pulls out leaves the consumer with a sense of Deja vu.
The RIM split will see the company’s instant messaging and headset units being run as separate divisions but cannot help but generate flashbacks of a struggling Finnish telecoms giant.
RIM is also contemplating selling off the struggling BlackBerry hardware business.
I posed the question as to whether RIM and Nokia will be able to survive current market conditions and we may effectively have our answer.
Since the RIM blackout in 2011, the markets confidence in Blackberry has taken a nose dive with many users turning to Apple and Samsung as phones of choice. This, as well as the fact that they are struggling to compete with Android, prompted RIM to cut a significant number of jobs.
Besides the social forces which sparked the change, the blackout prompted many users to question the technology that drives Blackberries and the reliability thereof.
We live in a world of technological change. Virtually all organizations employ a variety of technologies to produce their goods or offer their services. The fact that there is a underlying unhappiness towards the 2011 blackout as well as the fact that it is struggling to compete with Android means that change is necessary.
The RIM split was announced on the same day that the world’s fifth biggest smartphone provider HTC announced its intentions to pull out of the Brazilian market citing poor sales as the motivation for the move.
This is surprising as in terms of global markets. Brazil is the fourth biggest smartphone market in the world behind China, the US and India.
HTC’s latest earning reports have not been great. Fierce competition from Apple and Samsung have pushed HTC to the back of the pack, reducing the company’s profit margins and catastrophically reducing sales of HTC handsets.
Social forces are the most important catalysts of change. Simply by alerting their interest in other products, companies have to look at change. Changing public interests mean that organizations such as RIM and HTC need to continually shift their marketing, sometimes their image, and always the way that they do business.
This means that two of the world’s largest smart phone producers will be experiencing a lot of change in an attempt to avoid organizational inertia (the inability to react to changing market conditions).
But can how will these changes be manifested, and will these changes benefit the company? All innovation is change but not all change is innovation.