Running Head: MOTOROLA INC.

CASE STUDY

Motorolas external environment salient opportunities and threats Observing the history of Motorola the enchanting thing that we discover is that the biggest opportunity that they have is their brands are well placed in the market. 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 Telco TV services by Verizon and this has provided the advantage to be placed in the rapidly growing market. One of the analysts has also instructed that Motorola has such products that can allow it to easily enter the mature market where risk is extensively high then in comparison to its competitors. Motorola has also expanded its products worldwide and to different other foreign countries where it has started to penetrate itself into new markets. Thus this will allow them to enter in to a diverse area and thus will also help them to enhance their expertise. However, its not always good news Motorola is operating in a very dynamic market which makes it highly possible for increasing threats to occur. Thus, the biggest threat to Motorola is from Japan which is producing high quality products and flooding them abroad attached with it a cheap price. Also we cannot say that Motorola is the only firm with an advantage of wireless technology because we have other firms like ADB which has provided us a huge success and scope in the area of IP-DTT-STD arena. Thus this company is also getting very much attraction from the Western Europe where it has created it has created a small exclusive market. Also Motorolas biggest threat is their competitor Sagem communication which was ranked as the highest and prestigious company in France because of its strong position in the market. Also the increasing technology and growing number of competitors like Nokia,...

Running Head: MOTOROLA INC. CASE STUDY

Describe the salient opportunities and threats that exist in Motorola's external environment. The popularity of cellular phones has made many people familiar with Motorola products. Other providers use products that Motorola creates and manufacture. The company has produced other communication media throughout its history. Motorola have a strong promotional strategy which allowed the company the relevant opportunity of strategically placing their products in the rapidly growing market where they are readily available to potential customers. Motorola has expanded its products lines into international market to increase their share and take advantage untapped markets. When a company enters a dynamic market this makes them vulnerable to increasing threats. The biggest threat to Motorola is from Japan, who produces high quality products and sells them at a low price to prevent the market from being dominated by foreign companies such as Motorola, and allowed their companies to keep a competitive edge. Motorola biggest threat in the United States comes from competitors such as Nokia, Samsung, and Sony Ericsson Mobile Communication. Motorola is aware that these three companies are in a prime position to control a high percentage of the communication market. Motorolas biggest threat comes from competitor in the handset market; they are constantly faced with emerging technologies from company such as Mobile Internet Device (MID). They are advance in the social networking technologies, which Motorola have not had the competitive advantage to advance this technology. The increasing technology and growing number of competitors like Nokia, Samsung and Sony Ericson, who have a competitive edge in the social networking market, can Motorola Inc. 4 pose huge threats for Motorola. Companies In the international

Running Head: MOTOROLA INC. CASE STUDY markets where government protections laws are not strict can also gain a huge advantage over Motorola. 2. Describe the company's most prominent strengths and weaknesses Before arriving to the concept of strategies, a company should make an SWOT analysis. SWOT analysis consists of: Strengths, Weaknesses, Opportunities, and Threats. Motorola also build its SWOT analysis based on the market experiences. According to the case study we will only focus the company`s most prominent strengths and weaknesses: Strengths Motorola is one of the world's leading providers of wireless communications, semiconductors and advanced electronic systems, components and services. Motorola is an inventor of technology and has firstmover advantage. In the early years, Motorola controlled the emerging U.S. market for wireless communication devices such as cellular telephones, pagers and high-frequency radios. Motorola maintains sales, service and manufacturing facilities throughout the U.S. and conduct business in international markets. Motorola is strongly committed to delivering customer satisfaction, continuous improvement, and setting new standards of quality through their development of the Six Sigma Quality Improvement Process. Six Sigma is an analytical, statistical Approach that is used to improve the quality of manufacturing processes and to eliminate defects (Michael A Hatt, 2011). Motorola Inc. 5 Weaknesses Motorola maintained old strategies in doing business, was conservative and unambitious. Motorola was complacent in its leadership position in the U.S. market, and failed to aggressively compete the with emerging international firms. They saw the weakness in Motorola leadership and took the opportunity to gain a competitive advantage. Motorola Mobile phone business has recently suffered a recession leading to loss of customers, this lead to the company losing an extreme amount of sales; in return Motorola was face with a major dilemma. For any company to operate successfully it has to realize its strength and

Running Head: MOTOROLA INC. CASE STUDY weaknesses. When a company is aware of its strength and weaknesses, it is easy to determine its position in the market and to realize where it stands. Motorola has always been consistent with new technology; this can be proved by their innovative ideas and lucrative invention in the past. Expertise in innovation creates strengths which will take a company to new heights. 3. Describe the advantages and disadvantages associated with each of Motorola's strategic options. A strategy is the long term plans of an organization, in order to have an expected view of future plans. A strategy can only be successful if it is applied with full competence. Motorola has a tradition of being a first mover in the technology arena. Their innovation allowed the firm to gain a competitive advantage on the WiMax technology by investing in Research and Development (R&D) of communications equipment to facilitate the technology. Motorola is not Motorola Inc. 6 only a manufacturer of the WiMax chip, but the company also manufactures cell phone and other products that will be used with WiMax. The disadvantage that faces Motorola after they release a new product to the public is, they have a tendency of being complacent with their success, and this allowed other aggressive technology company to copy and improve their idea to gain a competitive advantage. Motorola next strategy is to create an opportunity to return the firm to profitability status. Their aim is to make strategic efforts to better understand consumer`s demand. In addition, it plans to pursue products upgrade cycle and to initiate operation change to cut cost and make the company leaner. The disadvantage to this is, Motorola`s cost reduction actions may exposed the firm to greater risk, now and in the future.

Running Head: MOTOROLA INC. CASE STUDY 4. Describe how the corporation's strategy and organizational structure can be designed to solve the company's strategic issues. A diverse work environment will allow an organization structure to operate more efficiently, because collective idea creates a well-rounded team environment. By this, I mean that since its a technological intensive organization, it is imperative the employees are train regularly so that they have awareness and expertise in the particular work they performed. Adaptations of a democratic style of leadership within the organization will creative an innovative environment that will encourage worker feedback within the organization. Quality is another thing which the organization will need to focus on and be consistent with. Quality is important; otherwise the company can lose its current plus potential customers. Motorola Inc. 7 Adaptation of technology need to be the company`s main focus, has we have observed the tones of intensive competitors within the environment, by not being diverse can lead to a major disadvantage in this type of competitive markets. 5. Explain how Motorola should proceed Total cycle time is the time from when a Motorola customer places an order until it is delivered. In the case of new products, Motorola's cycle-time reduction is even more ambitious; the clock starts ticking the moment the product is conceived. This calls for an examination of the total system, including design, manufacturing, marketing, and administration. Motorola can only succeed through creativity and persistency. David Buck, Director of procurement, states We look for opportunities for our supplies to be more successful (Michael A Hatt, 2011). He knows that if their suppliers are in the position to have readily supplies on hand, then their customers will be satisfied, and the company will be successful. This is a win, win situation for Motorola.