Question
1. Embracing Market Shifts: Despite initial resistance, RIM recognized the need to adapt to market trends and incorporated features like voice call capability, video, and a color screen into the BlackBerry.
2. Focus on Functionality: RIM's philosophy was to create functional devices. This was evident in their initial reluctance to add non-essential features to their products. However, they eventually understood the importance of these features in attracting a larger customer base.
3. Importance of Design: RIM understood the significance of product design in influencing consumer decisions. This led to the redesign of the BlackBerry, making it thinner, longer, and more reminiscent of a telephone. This design change was instrumental in doubling their user base.
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Early warning signs began to surface about RIM's ability to navigate a newly competitive market. RIM was slow to fully embrace key market shifts. For example, Lazaridis strongly opposed, at least initially, improvements to the BlackBerry such as voice call capability, video, and a color screen, claiming that RIM made functional devices, not toys. Soon, however, there was consensus that the BlackBerry should in fact be a phone. The initial design was incredibly poor, however, "The form factor was weird. It was a calculator, a piece of toast," said Jason Griffin, RIM's chief of product design. Ever-aware of the importance of design and removing "think points," Lazaridis pioneered a redesign, calling it "Charm." 20% thinner and longer, Charm was much more reminiscent of a telephone. BlackBerry sales grew accordingly, doubling from 1 million users in February 2004 to 2 million users in October 2004, and then again to 3 million in March 2005.
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