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Published by:
Ivey Publishing (2008)
Version:
2017-05-24
Revision date:
07-Jun-2017
Length:
19 pages
Data source:
Field research

Abstract

Research in Motion (RIM) is a high technology firm that is experiencing explosive sales growth. David Yach, chief technology officer for software at RIM, has received notice of an impending meeting with the co-chief executive officer regarding his research and development (R&D) expenditures. Although RIM, makers of the very popular BlackBerry, spent almost $360 million in R&D in 2007, this number was low compared to its largest competitors, both in absolute numbers and as a percentage of sales (eg Nokia spent $8.2 billion on R&D). This is problematic as it foreshadows the question of whether or not RIM is well positioned to continue to meet expectations, deliver award-winning products and services and maintain its lead in the smartphone market. Furthermore, in the very dynamic mobile telecommunications industry, investment analysts often look to a firm's commitment to R&D as a signal that product sales growth will be sustainable. Just to maintain the status quo, Yach will have to hire 1,400 software engineers in 2008 and is considering a number of alternative paths to managing the expansion. The options include: (1) doing what they are doing now, only more of it; (2) building on their existing and satellite R&D locations; (3) growing through acquisition or; (4) going global.

Topics

Telecommunication technology; Change management; Globalization; Staffing; Growth strategy; General management/strategy; International
Location:
Industry:
Size:
Large
Other setting(s):
2008

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