Factors For Fall: Reasons For Fall Of Motorola

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Reasons for Fall
From being one of the greatest innovators of all time and developing products like the first radio carried to the moon, the first cell phone, Motorola gradually lost its position in the consumer mobile market. Before even the split of Motorola to Motorola mobility and Motorola Solutions the decline had started. A combination of bad decisions led to its fall and led to Motorola losing relevance in the market.
In 1990 Motorola’s annual revenues were of the tune of 11 billion under the leadership of Bob Galvin and was raked in the top 50 companies of all times. It was the first company to develop Lean Six Sigma processes to deal with the onslaught of Japanese companies. Also by 1994 almost 60% of the phones sold in USA were Motorola’s. It was also amongst the first few companies to begin production in China, but it did have to face the issue of training the
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With the crash in tech and telecom market in 2000, Motorola lost a lot of revenue and business.Soon enough Motorola’s then CEO Chris Galvin was closing plants and laying off people in the early 2000’s.
The only saving grace at the time was the impending launch of the new digital mobile “RAzr” on which Motoroal had pinned all its hope. It did prove to be a great commercial success with great demand from both AT&T and Verizon generating billions for Motorola in the process.
Change of leadership at the wrong time. Firing Chris Galvin and bringing in Zander in 2004, just before Chris’s efforts on Razr were starting to pay off. And playing with the same technology long after others in the industry were updatating to 3G version
Soon enough stock investors like Icahn began to acquire shares and eventually a place on the board. He was one of the proponent to break up the Motoroal business into two parts namely:
1. Motorola
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