Monday, 25 July 2011

Forget About Cost Cutting: RIM Needs to Increase Sales

Research in Motion (RIM) announced that it is cutting 2,000 jobs. Job cuts are cost cutting measures and even in the best of times, job cuts are disruptive. Cost cutting is operational. RIM needs to think strategically. What RIM needs to do is stop worrying about cutting costs and instead focus on increasing sales.RIM needs to role out its new operating system and get some cool new products in the stores for the fall.

1 comment:

  1. The American equity analysts (notwithstanding their inherent jingoism and ability to talk up a stock) have done a better analytical job in the RIM vs. APPLE debate. Of course, few CEOs have the vision, and ruthlessness of Steve Jobs; the co-CEO deal at RIM appears to be an anchor now.
    While not directly related to RIM, here is a piece from Bloomberg on IPADs in the Japanese market (unarguably the one with the earliest adopters):