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Strategic Analysis - Motorola Share - Case Study Example

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Internal strengths and weaknesses Throughout its 78-year history, Motorola has been able to maintain its competitive position by turning innovative ideas into products that have high market demand. This innovative culture is one of the most important strengths possessed by the telecommunication company…
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Strategic Analysis - Motorola Share
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Download file to see previous pages The focus upon the customer has enabled the company to reinvent its organizational structure several times successfully over its history. From televisions and consumer electronics to microcomputers cellular phones and pagers, each time the company has been altered fundamentally, enabling Motorola to compete in different industries. In this manner Motorola’s competitive advantage has been sustainable. The company has created an organic organization design which enables the management to maintain the continuous process of innovation. By capitalizing upon this strength, Motorola has been able to develop a wide range of products and services ranging from wireless handsets and smartphones to wireless and wireline broadband solutions to end-to-end enterprise mobility solutions. This diverse product range has enabled the company to build brand reputation and customer loyalty in a wide range of industries. The diverse product range has also led to a sustainable competitive advantage since the company can maintain profitability by focusing upon other industries if the demand in one industry is affected. Another strength of the company is its organizational culture. It provides a positive environment for the employees so that they are satisfied in working for the company. This motivates them to strive for continuous improvement in productivity. As a result, Motorola has been able to achieve the highest standards of excellence in the industry. One of the weaknesses facing Motorola is that the management has not coped with complexity well as the organizational structure has evolved. This has had a negative impact upon decision making further affecting the management of its international network of subsidiaries, branches and companies. As a result the company has been facing declining sales. At a time when competition in the industry is high, Motorola needs to create an organizational structure that optimizes international management. However the management has yet to take any action in this regard. The result is an inefficient organizational structure. Word count: 400. The current strategy of Motorola Given the high competition in the industry, Motorola has to create a sustainable competitive advantage. The current strategy of the company is to meet this long-term objective by capitalizing upon its core competencies. The important core competencies possessed by the company are brand management, supply chain management, mass production system and product development technology (Case study strategic analysis). The company is trying to combine these core competencies in an organizational structure which makes the company an attractive prospect for the stakeholders. Brand management enables the company to develop a strategic focus that makes the company very market and design driven (Motorola, 2006). In supply chain management, the company is able to develop an efficient system for inventory management and production scheduling. The mass production system saves costs and time and the product development technology has been built upon a standardized information system. These activities have led to a current strategy that takes into account social and environmental costs. Different stakeholders such as consumers, investors, nongovernmental organizations are demanding sustainable performances from the companies that they are investing in. If the products show poor environmental performance, then the company as a whole is not likely to have a ...Download file to see next pagesRead More
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