Blackberry 1999 Annual Report Download - page 5

Marketing and broadening awareness of RIM’s products was a key
strategy outlined in last year’s annual report. The successful launches
of both the Inter@ctive Pager 950 and BlackBerry were made possible
by the efforts of our marketing and sales team. RIM products were also
prominently featured in promotional activities by partners, including
BellSouth and Fidelity which produced U.S. nationwide advertising
campaigns. As well, broader media awareness of RIM’s products was
evidenced by numerous positive product reviews and “best of class”
awards from leading magazines and industry analysts.
RIM’s production team has proven its ability to scale volumes without
compromising quality. The addition of new equipment to the surface
mount lines, the implementation of a new enterprise resource planning
(ERP) system to manage inventory needs and production planning,
as well as working with the product design teams to ensure design
efficiencies have all contributed to this success. RIM is currently meeting
demand with one shift running in the plant. The production team is able
to scale capacity by adding shifts or additional equipment on short notice,
the result of which is expected to increase total capacity to over 1 million
units per year. We are also exploring longer-term plans to ensure RIM can
continue to meet expected increased market demand for its products.
From an industry perspective, wireless messaging and two-way paging
have become mainstream topics of awareness and discussion. Conferences
are now held on these topics alone. The ability of RIM’s devices to
provide access to email has contributed to this awareness. Industry
terms such as “Information Appliances” and “Internet Appliances” are
commonly used to refer to products that incorporate wearability with
wireless data communications. People are beginning to understand the
utility of RIM’s products because they are using them in everyday life.
To continue to build on the successes of fiscal 1999, there are two
critical areas of focus over the upcoming year: catalyzing demand for
wireless messaging and the solid execution of RIM’s business plan.
CATALYZING DEMAND FOR WIRELESS MESSAGING
Product reviews, awards, and ongoing beta trials (where products are
tested by customers) have all given indications that RIM’s products meet
the criteria necessary for success. However, the true barometer of success
is the extent to which people are willing to actually buy and use these
products. RIM is devoting significant resources to marketing, selling and
developing and supporting distribution channels for its products.
3
Employee Skill Sets

32%
41%
14%
13%
R&D
Manufacturing
Sales/Marketing
Finance/Administration
Mike Lazaridis
President and Co-Chief
Executive Officer
Jim Balsillie
Chairman and Co-Chief
Executive Officer
Gross Research
and Development
(CDN $ million)
0
2
4
6
8
10
12
1.5
2.5
4.5
6.5
96 97 98 99
11.8
95