[img_inline align=”right” src=”http://padnws01.mcmaster.ca/images/bbtorch.jpg” caption=”The BlackBerry Torch touchscreen smartphone, developed by RIM. The company has had its share of difficulties as of late, with increased competition from Apple, Microsoft and Google, poor product reviews and technological glitches affecting millions of people. “]Waterloo, Ontario-based RIM, maker of BlackBerry smartphones and the Playbook tablet computer, has faced a number of challenges lately. Cutthroat competition from rival companies such as Apple, Microsoft and Google, less-than-stellar reviews for new products and now technological malfunctions affecting millions of users around the world have resulted in sliding stock prices and speculation as to the future of the company.

Nick Bontis, associate professor in the DeGroote School of Business, says that RIM shouldn't be counted out just yet, but that the company will have to execute at least three strategic tactics in order to rebuild its reputation. Bontis answers five questions about RIM below.

Other than the obvious tech issues currently facing the company, what is going on at
RIM? What is the cause of their recent problems?

When an organization realizes accelerated growth as RIM has over the last decade, it
often loses its “nimbleness”. RIM's innovative capability was stronger when the firm was
smaller. Now it sells BlackBerrys in almost every country around the world. It's difficult
to be locally attentive to market demands when you are a global behemoth.

RIM's main competitor, Apple, was once considered “down-and-out” and managed to
come back and become the largest public company in the world. Can RIM do the
same, or are its circumstances different?

The turnaround story that Steve Jobs orchestrated at Apple is extremely rare. He was a
genius and a leader with very strong managerial capabilities. Let's not forget that he
fundamentally changed three entire industries: music, movies and mobile phones. RIM
has different DNA. That's not to say that RIM can't turn things around, but the Apple
story will be taught in business schools for decades to come.

What should RIM do in order to achieve success once again?

Three strategic tactics moving forward: One: Be sure to launch the new QNX-based
smartphones [the QNX operating system powers the BlackBerry Playbook] in early 2012
without any glitches or delays. Two: Focus on business development in emerging
markets such as Africa and Southeast Asia where mobile phone penetration rates are
not as mature. Three: Provide increased support for RIM's developer community so that
the inventory of BlackBerry apps is greater.

Can the BlackBerry continue to compete with Apple's iPhone given its recent troubles
and loss of market share? Can the PlayBook compete with the iPad?

Yes and no. The new QNX-based BlackBerry smartphone can definitely compete with the
iPhone 4S, which was underwhelming in its launch. The PlayBook, however, is no match
for the iPad in terms of sales volume, features or apps.

What does the future hold for RIM? Will it have a management shakeup? Will it be sold?

Co-CEOs Jim Balsillie and Mike Lazaridis will hold on to RIM as long as possible. I would
too! It's their baby and they nurtured it from scratch. There is a tremendous amount of
emotional capital invested in this Waterloo firm. If the stock price continues to languish
below the $25 target level, it could definitely become a takeover opportunity – but not
because of the physical value of the business. It would be RIM's patent portfolio that
would attract buyers.