When RIM decided to incorporate personal apps into the BlackBerry, developers we

Question

When RIM decided to incorporate personal apps into the BlackBerry, developers were required to use the company's Java-based operating system, which had been created in the 1990s. In addition, they were required to submit apps for prior approval. Several apps including Instagram and Tumblr-went elsewhere. Explain this problem as a problem in bounded rationality. Judging from what you know about RIM from the case, in what other ways would you say that RIM decision makers were hampered by bounded rationality?

Explanation / Answer

Bounded rationality is basically the rationale of decision making which is quite limited by the availability of information at hand, the limitation of thought process as well as the constraint of time.

In the case of RIM and Blackberry, the company was quite limited by the constraints. When the company planned to add apps in Blackberry, they used the age-old operating system, Java as that was the resource available to them. They did not conduct any research or benchmark study to identify the latest trends in the mobile phone industry. The consumer demands and requirements were also not taken into consideration. This closed-shell thinking and limited decision making led to the downfall of Blackberry as the phones of the brand became obsolete quite early. This is a clear example of downfall because of bounded rationality.

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