Motorola's Fall Essay

In the 1980s, Motorola was the major supplier in consumer market cellular telephone and pager systems. In the 1990s, Motorola was the number one of mobile sales. Today, “Motorola is a major player in a fierce electronic revolution of global dimension.” (Entrepreneur Media, 2011, p.1 ) .

One dilemma Smith faces centers around the pressure Verizon is putting on Motorola to make design changes that could affect the product launch date, volume, and potential sales. Another unique challenge Smith faces is leading a team comprised of departments representing different project outcome and communication needs (Sawhney, Miniati, Junsoo, & Goodman, 2014). Smith’s ability to lead a cohesive and productive team affects a number of stakeholders including the CEO, VP of Product Development, department heads and their teams, the Verizon Droid team, and end-users.

Since Motorola was established in 1928 they were known for their technological innovation and expertise. They were the first company to introduce the world first commercial portable cellular phone in 1983. They started the Iridium project in 1985 to establish and extend the technological knowledge and expertise. They wanted to create a solution to a problem which they thought

Research in Motion (RIM) was founded in 1984 and launched the BlackBerry smartphone in 1999, which made it one of the leaders in cell-phone innovation (RIM). In fact, for almost a decade, the BlackBerry was the product to have for people who were interested in cutting-edge sell phone technology. However, when Apple released the iPhone, it made a dramatic impact on BlackBerry's market. The recent release of a significant number of smartphone competitors has further impacted RIM's business. Despite these losses, RIM seemed to remain a viable competitor in the cell-phone industry, even if it had lost much of its market share. Some recent events have occurred that make RIM seem as if it may not be able to retain its current market share and may be in an unstoppable decline.

These relationships will help manufacture mobile phones at the lowest cost, reduce the risks from currency fluctuation, and improve the ability to cater to the Chinese government requirements. Motorola should look into the expansion of its manufacturing plant in Tianjin which is one of the major global production bases in the world for personal communication products including the cell phones. This may help Motorola improve the relationships with the Chinese Government. Motorola should continue to expand the relationships and contracts with China Mobile, Cisco, and Nortel networks which have been a great positive impact on the success of Motorola in China. These ventures will allow Motorola to focus on its expertise in developing and distributing cell phone technology and products while the network infrastructure will be handled by a company who excels in that area. Also having joint ventures with Chinese telecommunication infrastructure companies like China Telecom and Unicom will put Motorola in the front seat compared to its competitors like Nokia, Samsung and Siemens. Motorola management has been struggling to improve different divisions due to overcrowded products and divisions. Splitting Motorola into two divisions – Semiconductor division and Mobile communications division, will allow Motorola to improve the leadership in these two areas by having more concentration in each division by having

In the future, we do believe we will still be leader of the Cell Phone industrial globally and we will expand our market share ups to 38% globally. In the USA Market, we will maintain the Tech3 Mobile market and explore the Tech 4 Mobile market share. In the Asia Market, we will continue develop the New Tech3 Mobile to Asia customers by enlarging our market share arrived 37%. In the EU market, we want to be the second the biggest cell phone companies in the Tech 4 Mobile market. In the same time, we will still provide our high quality Tech2 mobile to the price sensitive customers.

Over the years, the company has become a worldwide industry leader in technology, and has released many products along the way. One of the company’s secrets to success is they tend to create their own in-house standards for technology rather than copying the standards of other manufacturers. This does not mean the company has not had its lows. In September of 2000 for one, the company had a net worth of a whopping 100 billion dollars but by December of the next year, this figure had plunged to $18 billion (Hao and Misra, 2012).

In October 2010, Apple accused Motorola Mobility and declared their devices as the copied iPhone. Later in August 2011, Google acquired Motorola together with its 17,000 patents to vigorously ‘defend Android’.

Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.

This report comprises of comprehensive analysis of the Moto G strategy in India focusing on the market segmentation and positioning strategy. Motorola is very effective in positioning Moto G as value for money product as survey results show that 81% of consumers perceive it as same. SWOT matrix prepared on the basis of Internal & external factors analysis reflects that Moto G being a new product in the market does not enjoy the same visibility as rivals like Samsung and Nokia.This has been strengthened by findings of survey: only 18% of consumers are willing to buy Moto G for its brand value.

 With  this  and  through  its  focus  on   this  market  segment   it  was  able  to  develop  its  hit   product,  the  super-­‐thin  flip  phone:  Motorola  RAZR.   While  these  boosted  its  position  in  the   analogue  mobile  phone  market  for  a  while,  MMI’s  slow  adaption  to  digital  technology  made   it  lose  the  race  to  its  rivals,

In his report he discovered that the products with fewer non-conformities (high quality) were the ones that performed well after delivery to the customer. It was accepted by everyone but the challenge that came in front of Motorola executives was to develop a solution to tackle this problem.

Motorola is a global communications leader that is divided into six business units: semiconductor products sector (SPS), broadband communications sector (BCS), integrated electronic systems sector (IESS), commercial, government and industrial solutions sector (CGISS), global telecom solutions sector (GTS), and the personal communications sector (PCS). Motorola was formed in the late 1920’s by two brothers; Paul and Joseph Galvin, since that time the company has undergone numerous changes. Today they are located in about 70 countries and are still one of the top electronic manufacturers.

Several Cellular business of Motorola have experience this weakness resulting in downturn in business and losing most of their prestigious customers around the world.

For example, in Europe, Nokia’s market share in the European smart phone market has shown a huge decline in the past couple of years. The problem began with the introduction of the Iphone in 2007, which set a new trend in the market. In order to return to the market leadership position, Nokia entered into partnership with Microsoft. Threatened by the rapid lost of market share to rivals, Nokia created series of Smartphones called Nokia Lumia. Nokia bet on these products to regain its lost market share. However two years after the partnership, with 9 Lumia products out in the European market. As Alison Donnelly (2008) points out the situation is already changed in late 2008. She stresses the fact that not so long ago it was very popular to own Nokia, but at this time the company was losing customers to rivals. The Finnish company had troubles adapting to the market changes, it did not recognize that the Iphone release in 2007 would create a new era into the mobile world. In a fast growing industry, time is a very expensive asset, as every company wants to possess the most innovative technologies and products before its