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MOTOROLA - Essay Example

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Motorola, originally named Galvin Manufacturing, was founded by Paul and Joseph Galvin. Motorola was an American based multinational company which was later divided into Motorola Mobility and Motorola Solutions, mainly due to the fact that Motorola lost about $4.3 billion from 2007 to 2009. …
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Download file to see previous pages Motorola Solutions is now generally accepted as the direct successor of the prior known Motorola, as the structuring lead to Motorola Mobility being spun off. (Boryana Georgieva, 2010) In 2007 when the reorganization took place, business was divided into three operating segments which included Home and Mobility Network, Enterprise Mobility Solutions and Mobile devices. Home and Mobility Network basically included products such as cable set top boxes, broadband cable modem etc; this contributed to almost to almost 32% of Motorola’s net sales in 2008. Enterprise Mobility Solutions deals with wireless broadband systems and it contributed to 27% of net sales. The Mobile devices compete in the wireless handset industry. (Boryana Georgieva, 2010) There are many factors in the external environment that directly as well as indirectly affects Motorola. First let us consider the competitors. Motorola used to own a high share of market in 2007, especially at the time of RAZR. However, they were not able to capitalize on the success with one major reason being the amount of competition in the technology market. Motorola faces fierce competition from Nokia, Apple, RIM, Samsung, LG and Mobile Internet Devices. Nokia possesses the highest market share in world right now followed by Samsung. They continue to produce high quality phones in great quantities for the customers. Lately, Apple and RIM have busted into the market with their unique characteristics with iPhone and Blackberry respectively. Because of their innovation, they were able to grab a huge market share and create brand loyalty amongst their customers. Apple were able to target, initially the youth which them spread out to a major chunk of the population, they also brought timely upgrades and additions to their iPhone which the consumers found all the more intriguing. Blackberry on the other hand went for formal and executive prospect, mainly targeting the executives. But due to their Blackberry services, which include Blackberry Messenger etc, they were able to gain high levels of customers throughout the world. (Aaron Christensen, 2009) Motorola has been going down the slope ever since. In fact, firm incurred a loss from cutting operations of $105 million which then resulted in $0.05 per diluted common share. The company which once dominated the mobile market has now been constricted to a lower market share. (Aaron Christensen, 2009) Even though revenues have decreased overtime, however, Motorola still has some strength as well. Motorola Company operates at operational efficiency, meaning their production and assembly line process operates in an efficient manner as to cut unnecessary costs and at the same time utilize maximum resources to maintain quality. Motorola’s products are high quality products, not only because they last a longer period as compared to some other phones, but their functionality is very efficient as well. Motorola has recently started producing the “Droid Family” which includes various products including Droid, Droid 2 & Global and Droid R2D2. The droid family was built by placing high value on importance on innovation. Motorola has also started segment targeting for the new Droid2 since consumers in the market place high value on trying out new things that appear onto the market. Now let us also consider some of Motorola’s weaknesses. Motorola management and shareholders are only worried about the sales and revenues, what is lacking is, vision. For any company to succeed in the market, they need to have a vision. For instance Steve Jobbs had a vision to bring innovation to the telecommunication technologies. Currently, Motorola is only concentrating on business and not focusing on the long ...Download file to see next pagesRead More
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