Motorola, Inc
Strayer University
Motorola, Inc.
Motorola, Inc has encountered significant financial loss over the past decade. Although, they have made several strategic changes during this time, they have not been able to restore the company to its previous financially stable operation. By doing a SWOT analysis, Motorola may be able to develop a strategy to boost the company’s performance. Regardless of what strategy is incorporated, it must be able to return the firm to profitability.
Motorola’s external environment has a large impact on its opportunities and threats. The threat that is impacting Motorola the most is new competitors based in different locations worldwide. These competitors, to include Nokia, Samsung, and Sony
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The disadvantage to cutting costs is the 3,000 jobs that will be eliminated.
The spinoff of the Mobile Devices segment that was postponed will be a huge advantage to the main corporation. However, the segment may not make it as an independent company, especially since it is already failing due to 2008’s economical downturn. If the company can divide and become two industry-leading companies, as Greg Brown stated, the advantages will include increased flexibility, more target investment opportunities, focused management and increased tailored capital structures (Hitt, Hoskisson, & Ireland, 2011).
Investing WiMax technology was a strategic investment for Motorola. If the wireless technology takes off, it may give Motorola the push that it needs to get ahead. Unfortunately, if the technology fails, Motorola may not recover from their losses. The advantages and disadvantages are complete opposites in this situation.
Strategic issues can be resolved by changing the design of the company’s organizational structure and strategies. Flawe3d strategies do not help the company with profitability. Motorola may be able to balance the company if they update everything from style of management to their research and development team. Another option would be to bring in a specialist to analyze the company’s structure and make recommendations. A cheaper alternative to a specialist would be to hire new people so that fresh new ideas are integrated into the company. Any changes
Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone
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 ) .
* Its so-called innovative or revolutionary products do not gain the company as much credits as Samsung or Apple does. The market will test its ability to
- The Threat of Substitutes is high, since mobile product-life cycles are short. For example, Motorola is currently
On the other hand there are also many other strategies that can achieve profitable growth such as a takeover or a merger. Orange and T-Mobile were two mobile phone companies that had nearly reached the end of their product life cycle in 2008 due to the rising popularity of other networks offering new USP’s such as 3’s unlimited internet and Vodaphones ‘freebees’ perks. However with the equal merger of the two companies in 2010 and performing under the new refurbished name that is EE (everything everywhere), it is now the largest mobile network operator in the UK, with around 28 million customers. The synergy between these two companies has not only increased
The areas that are the most relevant to the decision to invest would be Verizon’s growing 4GLTE network and their limited international reach. The 4GLTE network shows that Verizon is committed to future growth. International markets are huge opportunities for expansion and while a large risk, can be a big section for Verizon.
To explore these questions, strategists use three analytical techniques: SWOT analysis, strategic cost analysis, and competitive strength assessment. These tools are widely used in strategic analysis because they indicate how strongly a company holds its industry position and whether the present strategy is capable of boosting long-term performance.
A SWOT analysis is a distinguished instrument for examination of a company’s strategic situation and environment. Its objective is to recognize the schemes that will best support a business’ assets and competencies to the desires of the market. It is the basis for assessing the core abilities and restrictions and the prospects and dangers from the external environment. SWOT stands for: strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are deemed internal influences where there is some level of control; while opportunities and threats are deemed external influences where there is essentially no control.
SWOT Analysis: The internal strengths and weaknesses of the company, and the external opportunities and threats from the viewpoint of the company
The problem was to determine the appropriate course of action for the company to take between franchising and syndication. Considering using a SWOT at first glance the decision to analyze the different methodologies using
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.
Before any company want to make a decision to formulate and implement on some strategies, they would have to evaluate and measure their current performance first. One of the alternative that can be used by the company is through the SWOT analysis. At the most basic step, gather information and conduct analysis about the internal characteristics of an organization and the condition of external market is needed. The SWOT analysis framework involves analysis the strengths (S) and weaknesses (W) of the internal factors of organization, and the opportunities (O) and threats (T) is analysis of its external factors. The weaknesses
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.
1. The Smartphone industry is a well established market and the threats of a new entrant is low, as technology needed to rival the devices already available is quite advance if they want to differentiate from them
After researching Motorola one of the most delightful things that I discovered is that the biggest opportunity is their wide range of products that are well placed in the market, when the military has a need Motorola is here, when public safety has a need Motorola is there as well as the general population. Also understanding the fact that they have a very strong promotional strategy, by using different tools they tempt their customers towards an exciting era of innovation. The fact that Motorola has been involved in the venture of