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Shake-up to right the RIM ship?
By: Henry Brier
The temperature is rising in Ontario, Canada offices and two key
executives might be feeling the heat.
In other words, Jim Balsillie and the other founder of Research In Motion ( RIM ) might soon find themselves on the hotseat. After bleak second-quarter returns were delivered late last week, a well-connected Canadian investor and experienced merger lawyer had some notable words regarding the company presently led by Balsillie and Mike Lazaridis.
"What RIM needs now is either a transformational CEO or a sale of the whole company," Victor Alboini, whose firm Jaguar Financial owns roughly 5 percent of BlackBerry's parent company, told the International Business Times.
Once the darling of Corporate America, BlackBerry has slipped hard and is gasping while competing in the smartphone industry as it loses market share. Bloomberg reports returns publicized last month were unpleasant to the ears of investors for the third-straight quarter.
The iPhone manufactured by Apple ( APPL ) is trumping the BlackBerry while the Android software created by Google ( GOOG ) for various devices also is gaining strength. The PlayBook, RIM's attempt to enter the tablet market, has not caught on.
"RIM is on a path to becoming a niche player," analyst Ted Schadler with Forrester Research told Bloomberg. "RIM has to essentially retrench its strategy. It has to focus on what about its products make them different or better than Apple or Google products."