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Motorola in china case study - Essay Example

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The company dealt in telecommunication services during the time it was in operation. It had its headquarters in the United States, in the Illinois state (Pederson, 2008).
Between 2007 and 2008,…
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Download file to see previous pages China, represented a very significant market for Motorola in terms of manufacturing and research. According to the company sources, Motorola was successful in the Chinese market due to its understanding of the market, the people and the strategies it adopted.
In 1978, Motorola established its Beijing office, then in 1992 it developed a makeshift plant in Tianjin to manufacture paging devices. In 2003, the company was regarded as the most successful foreign company in China, courtesy of its adoption of a four-point strategy which as follows:
In managing success in its new environment, Motorola developed a new 2+3+3 strategy, which it used to create and sustain its competitive advantage. The numbers in the strategy represented goals that the company had developed in the process of achieving its success. The strategy was developed, following the need to consolidate on its market returns that had been found to be as follows,
In this new strategy, the first “2” represented two goals, which included creating a reliable R&D centre and a successful manufacturing company worldwide. The second “3” in the strategy included the company succeeding in three main areas, that is, trunking systems, broadband creation of semiconductors. The final “3” showed goals that the company was willing to achieve by 2006. These goals were, increasing the value of its particular yearly productions to about $10 billion, increasing its investments up to $10 billion as well as purchasing trading components of the same amount.
One of the important market entry strategies that the company had was an effective understanding of the Chinese market (Edmonds, 2000). Motorola Company had to take time in order to study and understand the Chinese people, thereby devising market growth and development strategies that effectively articulated their needs.
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