What Are The Reasons For The Fall Of Lenovo

Motorola has strong brand name in telecommunication market. It has well known in developed countries and being established in developing countries as well.

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

5. In trying to become a global brand, does Lenovo have a problem coming from China?

As a global leader in the PC market, Lenovo’s success rests on its ability to deliver consumer centric innovations in products that deliver a blend of mobility, performance and price. Design is an infrastructural element that helps define every aspect of a company, including Web site, stores, customer support, packaging, and messaging as well as its products. Lenovo has a well-earned industry reputation for delivering superior quality products. Quality is a fundamental component and commitment to customer satisfaction by delivering products that are of superior quality to comparable offerings from their competitors is the key to Lenovo’s success. In recent years, Lenovo relies heavily on local manufacturing strategies to shorten

Although Motorola compares favorably to its industry's five-year average return, that is not the case with its three largest competitors. Nokia has averaged a 16.7% return for the past five years. Qualcomm has averaged a 24.7% return and Ericsson has averaged a 37% return during the same five-year period (Morningstar, 2008).

Motorola, unlike Lenovo is a known name in US and other important markets of Western Europe and Latin America and has a strong foothold in the US and Latin America having 52% of its revenues from US and 20% of its revenues from the Latin American market, which Lenovo can get access to with the deal, thus having a much easier way of entering these markets and giving it in roads.

Lenovo is a Chinese multinational computer technology company operating in more than 60 countries and selling its products in around 160 countries. Motorola, an American company, focus on making cell phones and other electronics. In recent years, Motorola has experienced a bad financial situation and in 2011 Motorola split into two separate companies, Motorola Mobility and Motorola Solutions. In August 2011, Google acquired Motorola Mobility using about US$12.5 billion. In 2014, October 30, Lenovo announced that they have already finished the acquisition of Motorola Mobility from Google and they will operate the Motorola as a wholly-owned subsidiary. Lenovo paid Google about US$2.9 billion to complete this transaction which included approximately US$660 million in cash and US$750 million ordinary stock issued by Lenovo. The remaining US$1.5 billion will be paid to Google by using three-year promissory note. In this paper, we just consider the transaction between Lenovo and Motorola Mobility.

Google is following the same playbook. An internet company that is trying to build hardware brands (Nexus tablet computers, Motorola Smartphones.)

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.

Motorola sales have been in a constant decline over the last one year; they have lost market share from 22% to 12.1% now which is almost half from the previous year!

“Motorola was a true pioneer in personal communications. We introduced the world 's first commercial portable cellular phone. We even invented the groundbreaking Six Sigma quality improvement process, which became a worldwide standard for excellence”(Motorola.com). Motorola is a proud and well known technologies manufacturer and has been in the cell phone industry from the start. In fact, Motorola manufactured the first commercial cell phone in 1984, produced mainstream and very popular cell phone designs,specifically the Razr line, and is about to release the nexus 6 which will be the first nexus phone to be manufactured by Motorola. Even though Motorola is owned by Lenovo they still retain their creative and innovative qualities.

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.

Lenovo company mainly research, develop and sell notebook computer, all-in-one PC, desktop computers, tablets, smart phones, mobile Internet, server and storage, scanner, print and supplies, projectors, digital products, computer peripherals, intelligent television and services products.

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

Xiaomi was growing rapidly in the last five years in which it has become the world’s third largest smartphone company. Xiaomi has a great understanding of its customers and the market; therefore, it was able to attract many customers and create high quality products. One of the major factors that contributed to Xiaomi’s success was the mobile internet and e-commerce strategies. Xiaomi grew into a mobile internet and e-commerce company that contract-manufactures smartphones and compatible devices designed to offer a complete customer experience. The second major factor was Xiaomi’s world-class team. Xiaomi contained a world-class team of Chinese executives and one prominent western executive, with collective experience at top foreign IT firms like Google, Microsoft, Motorola, and Yahoo. Its executive team complemented Lei Jun, Xiaomi’s driven founder and CEO, and brought attributed that Lei Jun lacked. Furthermore, the last major factor was Xiaomi’s manufacturing model, which is based on customer demand. In other words, when Xiaomi’s customers place their orders