Research in Motion (RIM) is a high-tech enterprise in which explosive sales growth. David Yach, chief technology officer for software at RIM has announced a forthcoming meeting with the co-chief executive officer of its research and development (R & D) expenses received. Although RIM, maker of the popular BlackBerry, spent almost $ 360 million in R & D in 2007 this number was low to its biggest competitor, both in absolute numbers and as a percentage of sales compared … Read more »

Research in Motion (RIM) is a high-tech enterprise in which explosive sales growth. David Yach, chief technology officer for software at RIM has announced a forthcoming meeting with the co-chief executive officer of its research and development (R & D) expenses received. Although RIM, maker of the popular BlackBerry, spent almost $ 360 million R & D in 2007 this number was low to its biggest competitor, both in absolute terms and as a percentage of sales (eg Nokia spent $ 8.2 billion on R & D ) are compared. This is problematic because it suggests the question of whether or not RIM is well positioned to continue to live up to expectations, delivering award-winning products and services, and for his leadership in the smartphone market. Moreover, in the very dynamic mobile telecommunications industry, investment analysts often look to a company’s commitment to R & D as a signal that the product sales growth will be sustainable. Only to maintain the status quo, Yach will need to set 1,400 software engineers in 2008 and is considering a number of alternative ways to manage the expansion. The options include: (1) do what they do now, only more of it, (2) building on their existing and satellite R & D sites (3) to grow by acquiring or (4) going global
.
«Hide

from
Paul W. Beamish,
Roderick E. White,
Daina Mazutis
Source: Ivey Publishing
21 pages.
Release Date: 15, May 2008. Prod #: 908M46-PDF-ENG
Research in Motion: Managing Explosive Growth HBR case solution