RIM is Going to Split Business?

By Thea Neuman (Google)

Blackberry has come a long way, witnessing an interesting journey of ups and downs. RIM is certainly an organization one can’t take lightly, even if it is vying to maintain its leading position in the tech world, and at the same time aiming to witness the same days from its glorious past.

Though one can’t deny the fact that RIM’s rivals like Apple and Samsung are giving sleepless nights to RIM, there are no signs that RIM is falling. Tech world always sees ups and downs, and the market might be favoring iPhone and Android for now, but there are thousands of Blackberry fans as well. In order to face sturdy competition, RIM is pondering over to split the business in two separate parts, though it hasn’t come forward yet to confirm ongoing rumors of splitting the business.

If there is some element of truth in these rumors, then it sounds quite a feasible and thoughtful strategic solution. In fact, rumor of splitting its business by RIM doesn’t come as a surprise because gone are the days when leading companies would shy away from viable strategic options like mergers, divesting less profitable business units, and joint ventures etc to focus on a niche by scrapping loss-making business units.

Shareholders too would welcome this strategic move by RIM, as the saying goes ‘a stitch in time saves nine’. Considering the current market position of the company, RIM should consider some strategic solutions. This is really high time for RIM to scrap off unviable business units and to focus on revenue-generating units. According to the rumors, in order to offset cash crunches, RIM is considering over detaching its handset manufacturing division, which is putting stress on the company’s profit. However, there are no qualms that RIM may even consider about selling this division as well.

Reportedly, previous month, RIM turned to JP Morgan and RBC capital to frame suitable strategic options in order to bring back the company once again on sound tracks of growth and prosperity. As far as list of potential buyers for the hardware manufacturing divisions are concerned, they may include few biggies from tech-world like Amazon and Facebook. If reports are to be believed, RIM’s messaging network may also consider arch rivals like Apple and Google.

Nevertheless, there can’t be any denying the fact that there always remains an option of selling a large stake to any of the leading tech-firms. In case of RIM, it could be a leading firm like Microsoft.

Once again, RIM seems to be in a mood to revive its turnaround strategies which include splitting the business into two separate portions- one to focus on hardware manufacturing and another to focus on messaging platform.

Well we all know that Blackberry 10 is going to be an ambitious launch by RIM and a lot is expected from this operating system, which is scheduled for a fall release as it would be a kind of fresh start by RIM. They have left no stone unturned in turning BB 10 into a multitasking device comprising lots of incredible new features.

Well let’s hope that if RIM is considering splitting its business, then it does work out in the best possible manner. Blackberry loyal fans would at least hope to see RIM creating ripples in the market once again by rolling out next-gen Blackberry devices.