Professional Documents
Culture Documents
1. Introduction…………………………………………………………………………………2
2. Company overview……………………………………………………………………..3
3. Motorola's Strategy for Strategic Investment in China…………….4
4. Motorola : "A Good Corporate Citizen of China”……………………….5
5. Recent Awards and Recognitions in China………………………………..6
6. Question and Answer………………………………………………………………….7
1
The case examines the strategies adopted by the US electronics
company, Motorola, in China. It focuses on Motorola's initiatives in the
Chinese market to establish itself as a major brand. The case provides
detailed information on the four-point strategy adopted by Motorola in
China and the results of the same.
2
Company overview
Motorola in China
3
Motorola's Strategy for Strategic Investment in China
4
Motorola : "A Good Corporate Citizen of China”
Disaster Relief: Donated flooded areas along the Yangtze River valley
and the Northeast China region; setting up 11 schools for homeless
children in flooded areas.
Sports Sponsorship: The 11th Asian Games, the 21st Universiade, the
7th and 8th National Games, CNBA, National Football League Matches,
Badminton Matches, and Games for the Handicapped.
Active support for China's bid for the 2008 Beijing Olympic Games:
Motorola actively supported Beijing for its bid t host the 2008 Olympic
Games (Motorola's communication equipment has-been used in seven
Olympic Games).
5
Recent Awards and Recognitions in China
6
According to company sources, Motorola wanted to become more
Chinese than the local Chinese companies. Explain the strategies
adopted by Motorola to gain popularity with the Chinese
consumers. How far do you think those strategies helped
Motorola become a successful company in china.
Part I
• Investment/Technology Transfer
• Management Localization
• Local Sourcing
• Joint Ventures/Co-operative Projects
Investment/Technology Transfer
7
In the line of four-point strategy, Motorola invested in research and
development centers in China. In 1999, Motorola established the
Motorola China Research & Development Institute in Beijing. The
company announced that its research center would focus on
technological development and innovation. Motorola’s R & D institute
conducted research in the area of communication, software and
semiconductors.
Over the years, Motorola entered into agreement with two Chinese
telephone service providers “China Unicom and China Mobile” for
installing telecom networks across the country. It also provided GSM
technology to the mobile service vendors “Hubei Mobile
Communications and Eastern Communication Co. Ltd”
Management Localization
8
Sourcing Locally
Building an Image
9
displaying the new Motorola handsets. Motorola also sponsored local
sports events to enhance brand recall among consumers.
Motorola started feeling the heat by the early 2000s, when it saw its
market share declining due to fierce competition in the Chinese mobile
handset market. In order to increase its sales and market share,
Motorola announced a new strategy in June 2002.
The first '3' refers to three new growth areas including semiconductors,
broadband and digital trunking systems.
The core of the new strategy is the same as that of the Four-Point
Strategy: Win-Win for Motorola and China. Based on the new strategy,
Motorola will continue to be a good Corporate Citizen in China, to
deeply root itself in China and to be integrated into the China society.
10
Measures have been taking by all sectors to implement the 2+3+3
strategy. Motorola has adjusted its worldwide manufacturing capacity
and has shifted some production to China. The company also decided
to hire 4,000 more engineers and researchers and add 1 billion USD in
R&D to the existing 18 R&D centers.
Part II
11
grew up to 14%. Hence it shows that the strategies it adopted helped
Motorola became a successful company in China. But it was limited up
to certain period.
It was found that the reason for its losing market share was excessive
inventory, desperate competitors and cut throat pricing.
12