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Apple – Do the Right Thing – Time to BOYCOTT Apple Products
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More


RIM – Time for New Leadership – This Company is COOKED - Time for a Fire Sale or Maybe a Turnaround
 12/16/2011 edit
By PJLouis
Tags: RIM, Blackberry, wireless, smartphone

http://online.wsj.com/article/SB10001424052970204844504577098830120890576.html?mod=WSJ_Tech_LEADTop

 

There is not much to say.  If the two co-CEOs, Balsillie and Lazaridis, are so egotistical as to not see or understand the negative impact they have had on their business then as far as I am concerned the company has no hope of recovering.

The company has so much going against it now it is going to require a massive turnaround effort to get the job done.

The board of directors either does not have the courage to stand up against Balsillie and Lazaridis or does not have the understanding of how much trouble those have caused.  In other words the board is either afraid of Balsillie and Lazaridis or is just plain stupid.

There is a time and place when corporate founders need to stand aside for fresher ideas.  It is obvious, Balsillie and Lazaridis, are letting their egos get in the way.

I am guessing RIM is seeking to be purchased.  Unfortunately the vendors willing to purchase them are companies that are likely in as much trouble as RIM is.

RIM had an opportunity to fix itself last year.  A year has passed and the chances of a successful turnaround are slim to none.

It is conceivable the company can be acquired but the question would be: Who wants RIM and all of its legacy baggage?

In the end RIM cannot last without help in the form of a corporate purchaser.

Can the company recover with a new CEO, as has been suggested by a reader?  Maybe.  However, it will require that Balsillie and Lazaridis be removed from the board, probibited from having contact with management, and prhibited from having any influence in management decisions in RIM.

The board will also need to be removed because it is just plain INCOMPETENT.

A turnaround will also require heavy hitters in turnaround with massive experience in telecom.  The turnaround cannot be done by generalists.

 
too late for a new CEO ... 

Not sure they will find a buyer,  remember Palm?
gdt gdt
12/18/2011 
GDT - I just commented within the posting.
PJLouis PJLouis
12/18/2011 
What is there to turnaround?   Someone with a lot of telecom experience won't help a product company like RIM.   They announced that they are pushing back their next product release until late 2012 - in time for Christmas next year :-(       

RIM has too many products and not enough focus.     Their only chance may be to drop the RIM OS, come out with an Android based phone ASAP.   As it stands now, RIM OS will never attract App developers. 

Too late to save, too late to sell ...
gdt gdt
12/19/2011 edit 
A turnaround person's job is to save or salvage a company; which means transforms a company.  Turnaround managers hardly ever seek to restore the company to exactly what the company was.  So can it be done? Yes.

Will the turnaround be pretty? NOPE!

What will be left will be a small company.
PJLouis PJLouis
12/19/2011 edit 
Another reader recently commented to me that he disagreed with my view on RIM because the company generated a profit this year and has cash.  Hence, he believes RIM is much healthier than I believe it is.  My response to anyone who believes that all there is to running a business: if you own a business it is likely failing.

RIM is not trending well.  The company's track records to date for innovation and growing its customer base are horrendous.  The company is bleeding customers.  Recently the company's stock price dropped below its book value.  Byu the way I have not even touched on its incompetent management and board.

RIM is spiraling out of control.  Can it be saved? Yes but it will be a completely different company.
PJLouis PJLouis
12/19/2011 edit
 
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