Case Study Finally Finally Over

VASAVI JNANA PEETHA FIRST GRADE COLLEGE
REASON BEHIND MOTOROLA FAIL ?

Executive summary
Motorola is known worldwide as a trendsetter and leader in broadband and wireless communication.
Their services include designing, manufacturing, selling, installing service analog and digital two-
way radio, as well as voice and communications product system. Their products and services
comprise a wide array of technological innovations that connect people not only to information but
to entertainment as well. At the range of their products and services, Motorola is a giant
multinational company, which made them capable of monopolizing digital communication, digital
information, and digital entertainment with an annual sale of more than twenty-eight billion dollars.
The introduction of six sigma provided growth in the company; but recent years proved the slow
recovery of the company that caused remarkable decrease in its profits because the company
neglected the six sigma.Positive and Negative Aspect of Technology in this OrganizationOrder
custom essay A Case Study of Motorola Company with free plagiarism reportGET ORIGINAL
PAPERBased on the principles and visions of Motorola, this company centers their objectives on
providing quality technology product, which makes things easier for today’s generation
Motorola Company serves multiple clients. It creates products used by the government, business
establishments and even the public. Products such as cell phones, laptops, communication devices,
and computer processors are very efficient enough to maintain its clienteles such as Apple
Macintosh, IBM, and many others. It has diverse lines of products, which also includes satellite
systems, cables, and modems. For many years, it is dedicated to provide high-innovated technology
with all its variations in order to be on top in terms of communication technology worldwidOn the
negative side,
Warrior cited the abuse of military technology particularly biological warfare, which used as an
agent of mass destruction. In a survey commissioned by Motorola in 1996,
findings revealed that forty-nine percent of the public in Britain does not use computer, and forty
three percent do not use any form of new technology. Mark J. calls this negative attitude as
Page 1
Technophobia. In most of the feedbacks from Motorola technology users, negative feed backs
mostly comes from cell phone users particularly V 300 units, but these feed backs were only minor
problems. Cases such as people having technophobia of the Motorola technology seemed to be not a
problem with the company as most of their product have been patronized worldwide by the different
sectors of the society.Specific Example of Technological InnovationsOne of the innovations of the
Motorola Company is the project called “Race to Recycle in Chicago as part of the company’s
partnership with the Cityl
.
According to many industry analysts, Motorola Company along with other cell phones
manufacturers had confronted similar problems due primarily from “poor planning and weak supply-
chain management (Vesa, p. 33). However, its decline in 1983 in its 16K DRAM (single power
supply) technology was just a slight one although it fell to around seventy percent almost losing its
market share.
ABSTRACT
According to Praveen Gupta, a former Motorola employee who turned writer, Motorola’s Chief
Executive Officer Bob Galvin invented the Six Sigma in 1986 as a management strategy to improve
performance, to renew the corporation, and to accelerate the improvement process. Over the past
years, Motorola had been implementing new strategies on a trial and error manner in order to find
out what strategy will work for the company. Gupta cited that “various initiatives were announced
annually, but no body ever knew how well they worked” (p. 3) Gupta noted, during this time,
Motorola had some improvement “but nothing appreciable” (p. 4). However, with the
implementation of Six Sigma strategy, Motorola had experience an accelerated growth.
However, Motorola’s success once again altered by market decline despite the existing Six Sigma
strategy. Gupta pointed out that such decline was due to changing market conditions, changes in
leadership, strategic mistakes, and ignorance of Six Sigma as the source of Motorola’s woes. Mark
A. Nash, Sheila R. Poling, and Sophronia Ward stated, the ultimate goal of Six Sigma was to “to
achieve a significant reduction in the number of defects that fall outside six standard deviations of
the upper or lower specification limit to 3.4 or less per million opportunities” . According to them,
the result of the implementation of the Six Sigma was “outstanding” as Motorola management
realized that reducing this defect number to 3.4 DPMO “meant focusing the company’s efforts on the
process not the individual defect”
Warren Buffet once said that when a manager with a great turnaround reputation encounters a
company with a reputation for dysfunctionality, it is the company that will keep its reputation.
Warren Buffet once said that when a manager with a great turnaround reputation encounters a
company with a reputation for dysfunction, it is the company that will keep its reputation.
Page 2
So it was with some sadness that I saw Motorola bow to investor Carl Icahn’s demands that the
company be split. Motorola Chairman Ed Zander dropped by the other day and the best thing I can
say was he was still a bit shellshocked. Here is the company that invented the cell phone — in the
fastest growing market in all of technology — getting clobbered.
So, sports fans, pick the reason that Motorola failed. Multiple answers are allowed.
Motorola missed the movement to 3G. Sure, it did — but remember its biggest customers, the U.S.
wireless carriers, didn’t think they wanted 3G. So Motorola listened to its customers, when they
should have been listening to its customers’ customers.
REPORT MAIN BODY
Motorola was a stodgy Midwest company in a fast paced Silicon Valley world. There is probably
some truth in this. The Razr was an aberration — a wild success. It is hard to have a fashion business
inside an industrial firm. Today Nokia is moving into graphics-rich cell phone games while
innovation from Motorol is giving you RAZR-lite retreads in puke colors. Apple understands design;
Motorola doesn’t. Motorola’s fashion sense only rivals New England Patriots’ coach Bill Belichick’s
Motorola got out of the right business at the wrong time. Motorola at one time owned lots of
spectrum, which it traded for equity in Nextel. So it starts every year with zero sales while firms such
as Qualcomm own intellectual property worth billions, and Verizon, AT&T and Sprint have millions
of customers who will pay them $500/year. Motorola turned down a chance years ago to buy both
Qualcomm and/or Nokia (for $20 million!).
Motorola just ran out of time. That’s what every losing coach in history says. Doesn’t fly. Maybe it
had the wrong management but running out of time was not the problem.
It did have a computer guy ( Zander) who had to learn the industry, but that could have been bridged.
After all, what did Steve Jobs know about phones?
Motorola should have moved into content. This one might be true. Motorola led in set top boxes and
IPTV
. It should have jumped all over Tivo/Slingshot. It made a great acquisition with Symbol —and it
understood content
, but didn’t carry the day.
Page 3
SITUATION ANALYSIS
Motorola stopped innovating. True. Do you carry a BlackBerry? A smartphone? Should Motorola
have been a platform company, like Google is moving to? The Razr was the precursor to both the
iPhone and the BlackBerry. By being late, it surrendered the high ground
. It should have jumped on Palm. Plus, no one on the Motorola’s senior management team ever sold
a product to a consumer. It really doesn’t sell licenses; it sells phones to teenage girls on Facebook.
Motorola didn’t execute. Exactly so. Its customers — the wireless carriers — had a hate-hate
relationship with Motorola, which did not deliver what it promised it would. Motorola never drank
its own Kool-Aid; they never built the “seamless mobility” lifestyle among its various product
groups. Can you see a way that consumers could have wanted to tie in their needs at home, at work,
on their person and their auto? Sure you can. But Motorola could never bring these warring tribes
together inside the firm. Face it — it communicated mainly by rumor.
Motorola didn’t grow. In the past, unhappy stockholders would just sell their stock. Today, they
moan and scream and force stupid actions. Motorola now has to go through gyrations which will
make it easier for its competitors. Right now, no one wants to buy this division so it will be spun off
to the stockholders. This looks like a very tough business to run. Turning a company with a
downward spiral is the single hardest job in technology.
Motorola is a loose confederation of warring tribes. Of course it is. It is a company of 66,000

employees. But the warring tribes never coalesced. This was the problem that Zander tried to fix.
Too little, too late. Game over.
Page 4
KEY ISSUES AND ENVIRONMENT

Motorola never had the sense of urgency. Could be true. Everyone else moves at warp speed;
Motorola jogged at its own pace, more like a monopolist than a paranoid competitor.
One of the benefits of capitalism is that it kills off those that are slow to innovate, slow to execute.
But I feel somehow badly that the firm that invented cellular is now the walking wounded.Case
Study Of Bob Galvin And Motorola1344 Words6 PagesIn this assignment, I will summary the
analysis done for the Bob Galvin and Motorola, Inc. case of study. This analysis includes the history
of the company,
arising problems, cause and effects, and alternative solutions that lead the Motorola organization to
succeed through cultural and structural changes. This study argument out the organizational systems
affected such as: operational, psychosocial, practical,
STATEMENT OF PROBLEM
Motorola was an early pioneer in mobile – starting first with radios and the first generation of
cellular phones – and has continued to be a leader in quality for their ambitious line of
smartphones and tablets. The New Product Introduction (NPI) process developed at Motorola has
been replicated and imitated at consumer electronics organizations around the world, and remains
core to Motorola’s ability to continually bring great products to market at a rapid pace.
One of the core missions of the development process is to find small but critical issues as fast as
possible.
cannot do.Over the ensuing year as new development programs adopted Instrumental,
LIST CRITICAL FACTOR
Motorola engineers partnered closely with Instrumental to beta-test several new powerful
features. At the end of the first program, Motorola was the first Instrumental customer to use
Intercept – a version of Monitor that provides real-time pass or fail judgements directly on the line.
Intercept uses edge-computing to enable judgements to be produced in seconds. Making any kind
of test, Instrumental or otherwise, go live on the line is a nerve-wracking proposition: what if the
Page 5
test has a lot of false failures? Pre-validation of new tests is super easy with Instrumental. By
leveraging the complete data record of every unit built
nd they can monitor those resolutions remotely with access to real-time trend data. With
Instrumental’s web application, Motorola engineers are able to easily track failure rate trends and
evaluate program-level risks – something that wasn’t possible before. With unprecedented visibility
and traceability on their development lines, Motorola engineers spend less time figuring out what
to fix, freeing them up to focus on implementing solutions that will delight their customers. As
Wayne Morrison, Principal Staff Mechanical Engineer, put it, “[Instrumental] enables you to work
smarter. Instead of doing disassembly, you can spend your time solving problems.”
RESULTS
Has inspected every development and pre-production unit on seven Motorola mobile phone
products, with more planned. Instrumental’s machine-learning algorithms regularly identify dozens
of unique and new issues on each program, and when combined with known issues the Motorola
team is tracking, results in tens of live Intercept tests. Since these algorithms are so easy to use and
to validate,
Engineers can use Instrumental to see the images taken of those units as they were built. Motorola
shared with Instrumental that occasionally, there will be an important issue that is elusive –
requiring a special experiment of 100 or even 500 units might be built – which consumes a lot of
precious development time as well as expense. The camera lens design Issue described in the
previous section is an example of a type of issue that may have necessitated a costly experiment
process. Instead, the optical engineer was able to quickly discover the root cause of the issue on his
own. Dave Konczal, Director of NPI at Motorola said, “Instrumental reduces the number of
experimental builds needed to validate our products during development – leading to a more
streamlined development process.
As a leader in the consumer electronics space who set the foundation for today’s best practices in
NPI, Motorola believed Instrumental technology was an opportunity to eliminate the cost and
inefficiency of finding and resolving issues in development, while delivering an even better end
product to their customers. With Instrumental, they sought to discover issues faster, strengthen
quality control on the line, and streamline their issue response to deliver new products on
demanding schedule timelines.
Page 6
In wireless industry Motorola is not only the company; some other companies also their like ADB
which have good opportunities, they have good and strong product line.
decision-making, goals and moral values. The analysis will show how the cultural and structural
changes affected the organization. Discussion will recommend alternative solutions and
implementation plans.
Motorola Inc. In 1928, Paul Galvin founded a company by the name of Galvin Manufacturing
Company in Chicago.
The company was focused…show more content…
In the 1980s, Motorola was the major supplier in consumer market cellular telephone and pager
systems.
In the 1990s, Motorola was the number one of mobile sales. Today,
Y “Motorola is a major player in a fierce electronic revolution of global dimension.” (Entrepreneur

Media, 2011, p.1 ) .
Motorola Problems and Causes Motorola was a very large organization and the organizational
structure was a problem. Motorola has over 75,000 employees across the United States (USA) and
15 foreign countries. There were too many levels of management. There were nine to twelve levels
between the first line managers and the executive level. The average span of control was over five
people or fewer. Some people managed three people or less. The “Tripartite Structure” was
comprised of Bob Galvin, CEO/Chairman (Jick &Peiperl, 2011). Japan’s technology was expanding
and was a threat to Motorola. Japan was selling products at less than fair value to rapidly increase
their market.
Galvin worked on a federal foreign and trade committee relations to fight unfair trade practices and
protectionism (Jick&Peiperl,…show more content…The employees once felt over managed and
under directed,
Page 7
they may have felt more empowerment after the layers of management decreased. The company that
had been built on trust and Motorola was good to their employees and maintained a good working
relationship with them and now were treating them different and they probably felt fear.
The company treated each employee with respect and dignity and maintained open atmosphere and
communication.
They continued to offer opportunities for training and development. The employees had always felt a
sense of security working for Motorola (Jick & Peiperl, 2011) so feel sure they must have felt some
resistance and fear of what was happening (American National Business Hall of Fame,
Motorola lost its top place in the current mobile market because of its outdated features when
compared to the remaining vendors like Realme and Xiaomi who are the top vendors in the mobile
market in India for past few years . They are offering advanced features at reasonable price and
benefiting a lot.
ASSUMPTIONS
Motorola Problems and Causes Motorola was a very large organization and the organizational
structure was a problem. Motorola has over 75,000 employees across the United States (USA) and
15 foreign countries. There were too many levels of management. There were nine to twelve levels
between the first line managers and the executive level. The average span of control was over five
people or fewer. Some people managed three people or less. The “Tripartite Structure” was
comprised of Bob Galvin, CEO/Chairman (Jick &Peiperl, 2011). Also,
Japan’s technology was expanding and was a threat to Motorola. Japan was selling products at less
than fair value to rapidly increase their market. Galvin worked on a federal foreign and trade
committee relations to fight unfair trade practices and protectionism (Jick &Peiperl,…show more
content…The employees once felt over managed and under directed, they may have felt more
empowerment after the layers of management decreased
. The company that had been built on trust and Motorola was good to their employees and
maintained a good working relationship with them and now were treating them different and they
probably felt fear. The company treated each employee with respect and dignity and maintained open
atmosphere and communication. They continued to offer opportunities for training and development.
Page 8
The employees had always felt a sense of security working for Motorola (Jick & Peiperl, 2011) so
feel sure they must have felt some resistance and fear of what was happening (American National
Business Hall of Fame
Motorola lost its top place in the current mobile market because of its outdated features when
compared to the remaining vendors like Realme and Xiaomi who are the top vendors in the mobile
market in India for past few years . They are offering advanced features at reasonable price and
benefiting a lot.
innovation from Motorol is giving you RAZR-lite retreads in puke colors. Apple understands design;
Motorola doesn’t. Motorola’s fashion sense only rivals New England Patriots’ coach Bill
Belichick’s.
innovation from Motorol is giving you RAZR-lite retreads
SWOT ANALYSIS OF MOTOROLASTRENGTHS
Motorola Company is the top supplier of wireless handsets, communication and broadband system.
Motorola Company has also demonstrated technology from its own and others video platforms.
OPPORTUNITIES
Motorola has physically powerful promotional strategy by use dissimilar tools and they willing to
take risk for product innovations.
In the year 2009 Motorola sales go beyond one billion hand phone.
WEAKNESSES
In general value of its operation products and big business practice sometimes make consumers to be
sad.
Most of their products have high quantity of defects.
THREATS
Page 9
Opposition from Japan, where they have flooded the marketplace with high superiority products
which are low cost.
CONCLUSION
:The first Motorola program that used Instrumental was a new mobile phone with an aggressively
short schedule. The Motorola engineering team and Instrumental worked together to identify a
handful of states of assembly that would show all of the key components of the product as it was
built up. Less than three weeks later, Instrumental team members deployed the array of Instrumental
inspection stations – which contained cameras, tunable lighting, and customized fixtures – onto
Motorola’s development line in China. The setup
Two stages of building into the enclosure, and many images of the exterior of the finished product.
As soon as these images were collected, they were uploaded to Instrumental’s database, and
immediately available in the Instrumental web application to Motorola engineers around the world.
This complete data record is a key differentiator between Instrumental and traditional industrial
vision systems, where the applications must be incredibly specific and the data remains trapped on
the local machine in the factory, unavailable to the team.
Motorola was an early pioneer in mobile – starting first with radios and the first generation of
cellular phones – and has continued to be a leader in quality for their ambitious line of smartphones
and tablets. The New Product Introduction (NPI) process developed at Motorola has been replicated
and imitated at consumer electronics organizations around the world, and remains core to Motorola’s
ability to continually bring great products to market at a rapid pace.
REFERENCE
http://moto.com
http://motorola.com
http://motomobile.com
http://motonetwork.com
http://mototechnology.com
Page 10
APPENDICES
ThepartnershiparrangementisstatedtobeinplaceandtheTataGroupisanticipatedtocombineAIExpresswith Air
Asia India, stated in the article. The Tata Group has approached Tony Fernandes, a Malaysian entrepreneur
whoownsa49percentstakeinAirAsia India,forapprovalofthe acquisition ofAIExpress(Economic Times,
2020, February5).
The story would close the circle of change and not only underlines the sad situation of state-owned
companies but also how India’s indigenous market communities fought to disappear even after decades of
socialist politics (Economic Times, 2019, November 5).
Regardless of the desire to buy Air India, a serious bidder will not appear until the government decides on
the operating mode of sale. The exact number of those who will appear as the top bidders will be
announced later when the bidding process is officially announced (Figure 6).
While this often happens, a strong list of applicants will certainly have an impact on the size of offers,
which is why the government hoped it would be the happiest. Ultimately, the seriousness with which they
ultimately bid dependsonhowimportantthedealistotheirlong-
termstrategicinterest.Thegovernmenthadmadeitclearthat
itmightnotdivestifthebidpricewasbelowthefloorprice
This project will accomplish to provide better the service quality to the passengers. These Flying services of
the Indianairlinesaredividedintothreestages-(pre-fight,in-fight,Post-fightservices)andIfoundthatthepassengers
of the Indian airlines has satisfied with service quality of Indian airlines. The aim of the company to provide
the betterservicesqualitytopassengersandthemanagementinparticularisverymuchresponsibleforthis.Through
passengersoftheairlinesthemanagementisgettingproperinformationabouttheserviceswhichareprovidingat
pre-fight,in-fight,post-fight.Andtofindouttheareaswherethecompanyneedstoimprovetoservicequalityof
theairlines.
The first commercial flight in India was made on February 18, 1911, when a French pilot Monseigneur
Piguet flew airmails from Allahabad to Naini, covering a distance of about 10 km in as many minutes.
Page 11
CASE 2
WHAT IS THE REASON BEHIND MICROMAX FAILURE ?
EXECUTIVE SUMMARYMicromax is an Indian consumer electronics company headquartered in

Gurgaon. The company was established as an IT software company operating in the embedded
devices domain; it later entered the mobile handset business. By 2010, it was one of the largest
domestic companies making handsets in the low-cost feature phone segment in India. As of Q3 2014,
Micromax is the tenth largest smartphone vendor in the world.
The ocean is widely known as an untamed force that cannot be controlled. Many a sailor will attest
to the wildness and the unpredictability of the great seas. It can twist and turn in the blink of an eye.
So too is true about the market. Companies rise and fall in the blink of an eye. One moment, they are
performing well and have captured a significant market share. And then suddenly, they have
disappeared. They dwindle into oblivion.
Micromax was founded in the year 1991 by Rajesh Agarwal. It was originally formed to supply
computer hardware to companies like Dell, HP and Sony.
In 1999, Rajesh Agarwal was joined by Rahul Sharma, Sumeet Kumar and Vikas Jain.
The Entry of Micromax Into phones
Perched at the dawn of the dot com boom, the four entrepreneurs found themselves surrounded by
opportunities.
The software business was blossoming and Micromax ventured into this sphere. In fact, they
originally went under the name, Micromax SoftwaresThe founders of Micromax were looking for the
next big thing and luckily stumbled upon the idea. Rahul Sharma was passing through Bengal when
he noticed that villagers were powering telephones using the battery from a truck.
Page 12
Micromax decided to create a new phone whose battery lasted for 30 days. The manufacturing of the
phone would take place in China by OEM’s( Original Equipment Manufacturer). These OEMs
would produce equipment as desired which would then be shipped into India and later marketed and
sold by Micromax.
Micromax relied on these OEM’s and began working with Chinese companies like Oppo, Vivo,
Gionee, and Coolpad to manufacture its phones in China. By doing this Micromax launched its first
mobile phone i.e. Micromax X1i. They decided to target rural areas as these were plagued by
electricity cuts.
ABSTRACT
Unfortunately, they couldn’t find a new distributor as they were new entrants in an established
market with the likes of Nokia. In order to resolve this Micromax turned to their existing terminal
distributors who took a lot of convincing but eventually agreed. Their efforts finally bore fruit as the
company sold all of the 10,000
phones in only 10 days with the market asking for more. Within a few months, Micromax had turned
itself from a 10 crore/ annum business into a 100 crore/annum business.
What happened to micromax – factors that led to the fall!
There was a brief moment in Micromax’s corporate history in August 2014 when the company
became India’s biggest mobile phone brand and the tenth-largest supplier of mobile phones in the
world. By 2019 the company’s valuation had fallen 90% from its 2015 peak.
Entrance of jio
The hyper-competitive smartphone industry brings forward rapid innovations in a short span of time
and this is the biggest challenge a company faces.Brands in the Indian markets underestimated the
speed with which the conversion from 3G to 4G would take place. Airtel had already begun
investing in 4G technology. Any company wanting to adapt would study previous trends and develop
their timeline accordingly. Consumers had taken years to transition from 2G to 3G and in 2015
people were still using 2G networks.
The advent of Jio revolutionized the industry. When Jio was launched every Indian went from having
no internet or paying huge costs for 2G/3G directly into having the fastest internet i.e. 4G free for a
number of months.In addition to this, calls were free as Jio used VOIP with the help of 4G.
Unfortunately, not everyone had phones that could access 4G. Technology is such thatyou cannot run
Page 13
4G data on a phone that is meant for 3G. Any person looking for a new phone or trying to make use
of the offer would buy a phone that had 4G accessories.Sadly for Micromax, they had 40 phones in
the market none of which supported 4G.
But the company could survive this right by ordering their OEM’s to manufacture models with
upgraded 4G accessories? Sadly this was not the case for Micromax. Their business practice
involved using the revenues of the phones just sold to order and procure another batch of phones
from China.
Overnight Micromax found itself stocked with a large inventory of 3G phones that no one wanted.
Couldn’t Micromax at least try to order awesome phones with 4G accessories by mobilizing funds
just to stay in the game. Sadly this was not possible as Chinese suppliers would only customize their
products if they were ordered in large enough quantities. Micromax did not manufacture their own
phones nor did they have the financial freedom to dump the older 3G phones and manufacture 4G
devices overnight. By the end of the year, their market share had reduced to 9%.
REPORT MAIN BODY
These companies began studying the markets thoroughly identifying points of entry. The
introduction of Jio forced established 3G phones to withdraw its inventory which allowed Chinese
manufacturers to flood the markets with 4G ready phones. This created a perfect setting for Chinese
devices as they already had a portfolio of devices that were compatible with 4G.
Initially, Micromax was able to hold off well against these companies as it was already an
established Indian brand. But soon the ‘Make-in India’ campaign rolled out and companies like
Oppo, Gionee, Xiaomi, and Vivo began assembling in India. This took away the advantage
Micromax had.
Micromax was set up as a brand that sold affordable phones but unfortunately, these were outsourced
from China. The Chinese companies were experts in both hardware and software, whatever was
currently offered they too did but with better quality and at cheaper rates. The focus of Micromax, on
the other hand, was quantity over quality. The phones offered by Micromax were average.
13These Chinese brands were also backed by
SITUATION ANALYSIS
Page 14
he Phones that were branded as Micromax were manufacture by Chinese companies. These
companies included the likes of Oppo, Gionee, Vivo, and Xiaomi. Chinese companies had realized
the potential of the huge customer base in the Indian markets.
Just to put things intoperspective the majority of Micromax’s products were ranged below Rs,10,000.
This meant that they relied heavily on cash. The Indian consumer then did not actively
The homegrown mobile brand Micromax started winning the market since Rahul Sharma started the
company in 2000 in Gurugram. But since 2017, the place of Micromax has been unstable with a
sharp decline in the revenue. The Chinese market has attracted the attention of Indian customers like
no other brands. The brands like Xiaomi, Oppo, Vivo are meeting the rising demands of the new-age
customers, and Micromax just lagged behind. In 2016, its revenue touched Rs 10,000 crores mark. In
2017 the value declined to Rs 5,614 crores, and in 2018 it plummeted to Rs 4,430 crores. The
company witnessed a sharp fall of 74%, hinting at the critical financial health of this mobile phone
brand.
Yu the initial days, Micromax dazzled the vast and diverse cost-sensitive user base with its
innovative and user-friendly features. For the Indian consumers, the range between Rs 5,000 to
10,000 is considered to be the sweet spot which is aimed by the rising brand. In 2012, when the
average phone that was available to the Asia Pacific was in the price range of $200-$300, Micromax
launched the legendary Canvas 2 A110, the first dual-core smartphone.
STATEMENT OF PROBLEMS
Are looking for why Micromax has failed? So you are on the right track. There are many reasons that made
Micromax flop, but the root cause behind the fall of Micromax, when India launched 4G and Reliance Jio
brought a revolution in India. According to Vikas Jain, co-founder,Micromax Informatics Ltd, Micromax found
itself with a huge stock of 3G smartphones across its supply chain, which it had to get rid of at a time when
the market was focusing on 4G devices. Furthermore, there were many reasons to make it flop. Besides
these, will you know further causes of failure
SOLUTION FOR QUESTION IN CASE STUDY
WHAT SHOULD MICROMAX WORK ON RIGHT NOW?
They should invest in Research and Development (R&D) to give a better user experience for the end-user.
This will also help in decreasing the cost of the smartphone and make them able to compete with others.
Work on service quality in terms of the service center and quality of the smartphone. This will give users
value for money.
Page 15
In the second quarter of 2019 (Q2), smartphone shipments reached to 36.9 million, up from 32.1 million in
the previous quarter, according to International Data Corporation’s (IDC) Asia/Pacific Quarterly Mobile
Phone Tracker.
A total of 69.3 million mobile phones were shipped to India in 2Q19, which was up 7.6% over the previous
quarter. The India smartphone market grew 9.9% year-on-year (YoY) and 14.8% quarter-on-quarter (QoQ).
This was driven by multiple online sale festivals since the Chinese company was introduced in India. And In
the same year, Online Shopping had been liked. Likewise Mi, All other brands had done the same, And
Samsung used to give a more specification phone with more cost, would be launched at a low cost.
RESULTS
All the mentioned strategies helped Micromax in increasing its market share and it penetrated deeper in the
urban markets. It became the largest GSM mobile phone vendor in India leaving Nokia and Samsung behind.
However, currently Samsung has again dominated the android market but Micromax with its budget
smartphones has been able to hold on a share of 17 per cent in the Indian smartphone market.
Total smartphone production in 2015 was approximately 616.6 million units about 51.9% higher than in
2014. Export is the major contributor to the industry revenue and accounts for about 74.8% of total revenue.
In 2015, smartphone export amounted to $73.5 billion, while import accounted for $3.2 billion.
Since the Mi phone launched in India, the price of Samsung has gone down. As you know that Chinese
companies let you provide more specifications with a low budget so we could buy without thinking too.
Before introducing Chinese companies, we had thought about whether to buy it or not.
Usually, the price of such smartphones is under 15,000. Thereby, The low budget Smartphones are being
brought to like. Let us take an example: If you visit a mobile shop to buy a Smartphone, the shopkeeper will
show two smartphones. One has a Snapdragon processor,
Quad camera, OIS, 5000 mAh Battery, 4GB of RAM, etc which price is 25,000. Second has the same feature
but the price is around 15,000. “Which Smartphone will you buy”? Very few phones had Gorilla glass,
That was too high and could not make an effort to buy. Although Yet all these low budget Chinese
Smartphones absolutely give it all.
Micromax primarily operated in the 3G sphere. They had about 40 different mobile phones, all based on the
2G and 3G technology. Their primary mistake was that they did not venture into the 4G market at the right
time.
Page 16
With the advent of Reliance Jio, the mobile data industry in India was completely revolutionised. Before Jio,
the majority of the population either did not have access to mobile data or had very limited access to mobile
data.
CRITICAL FACTOR
QUALITY AND SPECIFICATION?
Everyone looks for smartphones which have a great feature, quality. Some have wished “I should have the
best quality phone”. But Why? Maybe showoff.
It seems that smartphones add extra cameras every year. Nowadays, the quad-camera is being liked, despite
that, nobody knows what all cameras use it for. Still,
We just wish to buy more camera phones. The next is gaming, Chinese smartphones feature your
Snapdragon processor with low cost, and you will be able to play a game that requires more RAM, and
Storage. Where Samsung gives you 4GB RAM, costs you around 16,000 while on the contrary, Mi Realme
and Vivo cost you only 10,000.
PRICE SEGMENT?
Since the Mi phone launched in India, the price of Samsung has gone down. As you know that Chinese
companies let you provide more specifications with a low budget so we could buy without thinking too.
Before introducing Chinese companies, we had thought about whether to buy it or not.
Usually, the price of such smartphones is under 15,000. Thereby, The low budget Smartphones are being
brought to like. Let us take an example: If you visit a mobile shop to buy a Smartphone, the shopkeeper will
show two smartphones. One has a Snapdragon processor,
This is where the game changed for Micromax.
You see, the technology is such that you cannot run 4G data on a phone which is meant for 3G. As a result,
Micromax users started shifting to other companies which offered 4G phones in the same price range. By the
time Micromax realised what the problem was
, they already had a significant inventory of the older 3G phones. They missed the signs of the upgrade to 4G
and lagged behind. It was not possible to dump the entire inventory and newly manufacture4G phones. Thus
Micromax started losing its market share. By 2016, the market share had fallen to 9% and by 2018, they only
had 3.4% of the market.
Page 17
The second major factor which played a role in deciding Micromax’s fate was the advent of Chinese
smartphones into the market.
Micromax took inspiration from Chinese companies to manufacture their designs and equipment. Soon,
however, Chinese companies like Oppo, Gionee, Vivo and Xiaomi realised the opportunity presented by the
huge consumer base in India and decided that it was time to enter into this market. These companies
studied the market and identified the point of entry as the offline retailers across the country. They used this
opening and entered into the Indian market. Backed by superior financial power, these companies provided
incentives to retailers in order to promote their products.
Micromax managed to hold on against its Chinese competitors on account of its network in India. They used
to manufacture domestically and had existing factories and assembly lines across the country. This is where
they found an edge over the other companies.
The third reason for Micromax’s downfall was the fact that it did not focus on innovation and development
of technology.
As a technology company, the primary focus should always be on the development of products so that you
can give your customers the most advanced technology available on the market. In order to do this, you
need to invest in research and development, rather than just focusing on production and marketing.
ASSUMPTIONS
Micromax managed to limit the price within $150, thus gaining the limelight among the domestic
users. In 2014,
Micromax reached its zenith with22% market share and launching of several models under the
Canvas series
. Micromax imported the handsets manufactured in China, resulting in producing budgeted mobile
phones.
The second place in the Indian market is captured by Samsung, which was dwindling in this heavy
storm of Micromax.
SWOT ANALYSIS
STRENGTH
Page 18
He Phones that were branded as Micromax were manufacture by Chinese companies. These
WEAKNESS
They didn’t do well marketing for there mobile phones from this part of there phones are getting low
and. Downfall
OPPORTUNITY
THEART
the potential of the huge customer base in the Indian markets.The technical incompetence, just like
the Nokia,
CONCLUSIONS
Micromax took inspiration from Chinese companies to manufacture their designs and equipment.
Soon, however, Chinese companies like Oppo, Gionee, Vivo and Xiaomi realised the opportunity
presented by the huge consumer base in India and decided that it was time to enter into this market.
These companies studied the market and identified the point of entry as the offline retailers across
the country. They used this opening and entered into the Indian market. Backed by superior financial
power, these companies provided incentives to retailers in order to promote their products.
Micromax managed to hold on against its Chinese competitors on account of its network in India.
They used to manufacture domestically and had existing factories and assembly lines across the
country. This is where they found an edge over the other companies.
The third reason for Micromax’s downfall was the fact that it did not focus on innovation and
development of technology.
As a technology company, the primary focus should always be on the development of products so
that you can give your customers the most advanced technology available on the market. In order to
Page 19
do this, you need to invest in research and development, rather than just focusing on production and
marketing.
Everyone looks for smartphones which have a great feature, quality. Some have wished “I should
have the best quality phone”. But Why? Maybe showoff.
REFERENCE
http://micro.com
http://micromaxmobile.com
http://micronetwork.com
APPENDICES
2020, February5).
Page 20
This project will accomplish to provide better the service quality to the passengers. These Flying services of
the Indianairlinesaredividedintothreestages-(pre-fight,in-fight,Post-fightservices)andIfoundthatthepassengers
of the Indian airlines has satisfied with service quality of Indian airlines. The aim of the company to provide
the betterservicesqualitytopassengersandthemanagementinparticularisverymuchresponsibleforthis.Through
passengersoftheairlinesthemanagementisgettingproperinformationabouttheserviceswhichareprovidingat
pre-fight,in-fight,post-fight.Andtofindouttheareaswherethecompanyneedstoimprovetoservicequalityof
theairlines.
The first commercial flight in India was made on February 18, 1911, when a French pilot Monseigneur
Piguet flew airmails from Allahabad to Naini, covering a distance of about 10 km in as many minutes.
CASE 3
REASON BEHIND DOWNFALL OF KINGFISHWER
EXECUTIVE SUMMARY
Page 21
Kingfisher Airlines was established in 2003 and ceased operations when its license was cancelled on
20 October 2012. It is owned by the Bengaluru based United Breweries Group. The airline started
commercial operations on 9 May 2005 with a fleet of four new Airbus A320-200s operating a flight
from Mumbai to Delhi.[1] It started its international operations on 3 September 2008 by connecting
Bengaluru with London.
Kingfisher’s head office is located in Kingfisher House Western Express Highway Vile Parle €
Mumbai – 400099 India and its registered office is located in UB City, Bangalore.
Its head office was previously in the Kingfisher House in Vile Parle (East), Mumbai.[4] In 2012
Vijay Mallya was trying to sell the Vile Parle Kingfisher House.[5] The airline had shut down its
operations when on 20 October 2012 the DGCA suspended its flying license. This suspension had
been due to failure to give an effective response to the show-cause notice issued by
DGCAEstablishing an airlines company is difficult, but maintaining it over the years sustainably is
even more strenuous. Kingfisher, the King Of Good Time, was one of the largest passenger airlines.
It was established in 2003 by a Bengaluru-based company called United Breweries Group. They
soon succeeded to be India’s fifth largest passenger airline that provided both national
andinternational flights at flexible fares to its customers. Over 1 million people traveled using the
services of this airline during the month of May in 2009. This tremendously boosted its market share
among other airlines in India.
In 2011 Kingfisher also won the Skytrax award for being India’s best airline. But why would this
airlines no more reach the sky?
ABSTRACT
Another decision that impacted the efficiency of KFA was the sudden launch of international
services. Immediately after acquiring Air Deccan, KFA entered the international arena
Another decision that impacted the efficiency of KFA was the sudden launch of international
services. Immediately after acquiring Air Deccan, KFA entered the international arena. This entry
into a large market would have been ideal after consolidating the domestic service which had by then
captured a large share of the Indian market. KFA’s international venture was a thorough failure.
Indeed, it was destined to be so
. How could a man who lacked experience in running domestic airline survive in the rough waters of
international competition? The international skies were dominated by the likes of Emirates and
Page 22
Etihad and each had its diehard fans. Breaking their monopoly was too difficult a task for the nascent
KFA, and its international venture misfired shortly after its launch
Lack of stability at the apex level of management
Mallay’s business interests were many and desperate apart from breweries and KFA. The breweries
were managed by experienced hands, so his liquor business flourished. KFA was not that fortunate.
The owner due to his political (Vijay Mallya was a Rajya Sabha MP) and business commitments was
not able to give KFA the attention it needed.
REPORT MAIN BODY
SITUATION ANALYSIS
Switching from Premium Class Airline to the Low Budget Segment
KFA took off as a premium class airline catering to the needs of luxury-loving business executives
and politicians. It built up its brand systematically over a short period of time. But it lost its sheen
when its switched to the low-cost segment.
Sailing in the low-cost segment was not smooth. The segment was dominated by players like
Indigo,Spicejet and others. It was difficult, especially in the domestic sector. KFA faced stiff
competition, and its dream of making a fast buck lay shattered. KFA’s service deteriorated over time,
and its customer shifted loyalties to better airlines.
SOLUTION FOR QUESTION OF CASE STUDY
WHAT WENT WRONG?Kingfisher, also known as KFA launched with great fanfare as a
premium class airline is no more in function. If you are eager/interested to know why keep reading.
Vijay Mallya, the owner of Kingfisher was an experienced businessman in the sector of breweries.
He has acquired fame as a liquor baron. In spite of his skills in that sector, he lacked experience
when it came to managing businesses such as airlines company.
Due to this, he was unable to provide inspiring and effective leadership to the Kingfisher team. Two
decisions made by him, within a couple of years after launching KFA, have utmost significance. .
ACQUISITION OF AIR DECCAN
Page 23
The first was the acquisition of Air Deccan which was a no-frills service. Though KFA obtained all
the aircraft of Air Deccan and its market, the former also inherited its losses.
The downfall of KFA from being one of the best airlines in India is due to the lack of effective
decision made by the team. Acquiring the loss of Air Deccan, the sudden launch of the service into
the international arena and its change in segments which gave rise to competition are major factors
which led to its shut down.
VISION OF THE COMPANY
The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel
experience to all our guest
WHAT CAUSES?
There was the severe need to identify airline cause for distress considering financial and
operational issues to ensure safety functions don’t get affected. The possible unfavorable trends
in the operator’s financial state could include:
1. Decrease in safe operating standards or evidence of cutting corners.
2. Fall in training standards.
3. Significant turnover of personnel.
4. Delayed meeting payroll.
5. Insufficient aircraft maintenance.
6. Storage for supplies and spare parts. 7. Decrease in frequency of flights
8. Sales or repossession of aircraft and other major equipment Items.
REASONS BEHIND THE DOWNFALL?
Till December 2011, KFA was considered among top 5 passenger airlines in India but after
that it suffered high losses, heavy debts and finally shutdown in 2012. From the data collected, it
depicts that there are more business reasons as compared to marketing reasons behind the failure
of KFA. The main marketing reason responsible for the decline was the merging of KFA with Air
Deccan and starting of Kingfisher Red.
WORST DECISION MADE?

Page 24
In 2007, KFA merged with Air Deccan that was a low-cost-carrier that charges low fares while
kingfisher was a high cost carrier that was known for its luxury. Kingfisher thought that Air
Deccan was in market before it so it would uplift the financial position of the company and
another reason was that Kingfisher didn’t have 5 years of domestic experience but Air Deccan
had and to get international license in aircraft it must have 5 years of domestic experience
that is why it acquired Air Deccan.
After merging with Air Deccan there was introduction of Kingfisher Red in 2008.
But this business strategy caused confusion in consumer’s mind because the KFA passengers were
used to the luxury provided like cuisine and lounge access etc.
RISE IN FUEL PRICES?
Due to rising demand for fuel and competition among various airlines there was continuous
increase in the price of jet fuel and KFA was not able to pay the bill of fuel consumed
BANK DUES?
According to a report generated by “The Indian Express” in November 2015, Mr. Mallya suffered
a total loss of Rs 9,091.40 crore.
He took loan from 17 banks. His highest debt was with State Bank of India of Rs. 1600 crore.
From the above data the airline owes Rs 800 crore each to Punjab National Bank and IDBI Bank.
I also owes Rs 650 crore to Bank of India, Rs 550 crore to Bank of Baroda, Rs 410 crore to
Central Bank, Rs 320 crore to UCO Bank, Rs 310 crore to Corporation Bank and Rs 430 crore to
United Bank of India, among others,
Kingfisher Airlines Ltd. Was owned by biggest liquor tycoon of India with an ambition to become an
industry leader. Growing share in aviation market, wide number of destinations and numerous
awards, depicted a very attractive and innovative picture for the company.
Kingfisher airlines achieved success in gaining customer satisfaction by offering great and
comfortable flying experience to its passengers. However, in the Indian aviation sector, Kingfisher
Airlines had a short but lasting impression.
Kingfisher Airlines suffered a huge financial crisis. Kingfisher Airlines, UB Holdings Ltd. Was
provided loan by many private and public sector banks in India, considering the reputation of its
CMD. He was unable to repay loans to many public sector banks, however private banks recovered
all loans.
Page 25
This paper describes the downfall of Kingfisher Airlines and the study of financial condition of
United Breweries Holdings. Here
, we have tried to understand the business of Kingfisher Airlines and studied the role of banks in
extending loans and recovery attempts. Moreover, we have attempted to emphasize the reasons
behind the financial failure of the company from the point of view of mistakes in strategic decision
making.
PRICE? The airline adopted a premium pricing strategy. As the pricing strategy is highly dependent
upon crude oil, dollar rates, and competition.
The price segment that the firm targets are the higher income group as well as upper-middle-class
background.
It also targeted youth with high lifestyle segments. Kingfisher Red charges low fare thereby
targeting the middle-income class
KINGFISHER’S COMPETITORS? There are many competitors for Kingfisher both in terms of
beers and airlines. There are local and international competitors. Haywards 5000, which contains 7%
of alcohol is the top second after the Kingfisher beer brand in India.
At an international level, Budweiser became the number one beer brand in the world in 2020. In the
airline section, Kingfisher Airlines has been rated five stars by Skytrax. However,
in India itself, it had many challenges from airlines such as Indigo, Jet airways, and other local
irlines. These brands are recognized as competitors because of their infrastructure usage, services,
flight prices, and customer choices
CRITICAL FACTORS
THERE ARE A LOT OF REASONS WHY KINGFISHER AIRLINES FAILED
1. Lack of delegation is the primary reason. ‘I am taking things personally,’ Vijay Mallya,
chairman of Kingfisher Airlines, says when it comes to running his airline.
2. Unlike his other two major businesses – the spirits and beer segments – which have been
running exceptionally smoothly under the helm of managing directors, the airline has been
crash landing because of one trouble or another with frequent changes in strategy and
direction as well as the absence of no long term CEO or MD.
3. Step-child treatment to Air Deccan
Captain GR Gopinath, who sold his low-cost airline Deccan Airline to Kingfisher Airlines, admitted
that there was a disconnect between the two arms of the airline models. Low-cost aviation business
Page 26
was treated as a step-child. Post the merger, whenever there was an Air Deccan and Kingfisher flight
at almost the same time-slots, a decision was taken to do away with the Air Deccan flight in the hope
that the passengers will graduate to Kingfisher full-service. But just the opposite happened. They
went to other LCCs, providing yet another example of Mallya’s muddle-headed decision making.
4.In-flight interruption
4. Unfair fares
While KFA truly offered a premium and luxury service it took pride in calling itself a budget
airlines. It refrained itself from calling itself an LCC (Low-cost-carrier) as its fares while
were higher than the LCCs, it kept its fares lower than Jet Airways, Indian Airlines (now Air
India) and the erstwhile Sahara.
5. Burning fuel
Amidst this all, Dr Mallya forgot that he was operating in a business where fuel costs are
variable and taxes are discretionary. Add to all this the costs of high-blitz advertising,
including the deal with Ms Padukone, putting up exclusive lounges at airports,
gourmet cuisine, tele-booking centres, the expansive and expensive frills (touch screen seat
controls, sensuous mood lighting, unique starry sky, in-seat chargers, in-seat massagers, an
exclusive amenity kit and facilities like jacket ironing,
music streaming through Bose noise cancellation headphones) in Kingfisher First… aircraft
costs,
acquisition costs of Air Deccan… and what not. It was a clear case coming true of the
STRATEGIC ISSUES
The major mistake committed by Mr. Mallya is that he failed to make proper decisions. He failed to
understand the requirement of consumers and made all decisions on the basis of luxury sells. For
him airlines were considered to be a luxury travels but in India only selected classes were
ready to pay extra for luxury. 2. Mallya being a liquor tycoon was unable to identify the differences
between the two industries. Customer might pay extra for alcohol but not for transport, because
transport is type of necessity than luxury. 3. In 2008 Deccan airlines was rebranded as Kingfisher
Red by Mr. Mallya. So Kingfisher Airlines operated both business and economy class airlines.
This looks perfect but wasn’t actually.
Page 27
ECONOMIC SLOWDOWN?
Economic slowdown in 2008 is another external factor for downfall of the Kingfisher. In
2008,first international route from Bangalore to London was set up. Because of downturn, fuel
prices of airplanes raised landing charges at international airport which highly impacted
Kingfisher airlines.
LACK OF PROPER MANAGEMENT
The frequent change of CEO for more than once in a year and malfunctioning of top level
management, which Mr. Vijay Mallya never took any serious intervention in day-to-day operations.
Later airline was gifted to Siddarth Mallya (son of Vijay Mallya) by his father on birthday.
He lacked the maturity to handle such a big airlines business and so, lack of correct proficiency
and experience in the airline industry, kingfisher airlines suffered severe downfall due to
1. Lack of delegation is the primary reason. ‘I am taking things personally,’ Vijay Mallya,
chairman of Kingfisher Airlines, says when it comes to running his airline.
2. Unlike his other two major businesses – the spirits and beer segments – which have been
running exceptionally smoothly under the helm of managing directors, the airline has been
crash landing because of one trouble or another with frequent changes in strategy and
direction as well as the absence of no long term CEO or MD.
3. Step-child treatment to Air Deccan
Unlike road or rail transport, where there’s much of scenery around to keep you busy, flights are
usually boring. Much of the travel through flights between metros is covered in less than two hours.
In-flight entertainment or a movie is started only after the seat-belt signs are off. And then there’s
interruption of meals being served. Most passengers on domestic flights are not looking forward to
in-flight entertainment.
ASSUMPTIONS
The first was the acquisition of Air Deccan which was a no-frills service. Though KFA obtained all
the aircraft of Air Deccan and its market, the former also inherited its losses.
The Airlines achieved a five-star status and were popular among the business class travelers. It
also offered personalized live in-flight entertainment by collaborating with Dish TV India Limited.
By connecting Bengaluru with London, the airline commenced its international operations on
Page 28
3rd September 2008. During the year 2008, the company attained the reputation for being the
only five star air travels in India and came to be known for rendering excellent flight services to its
travelers and maintained its position for 3 years
Acquisition and expansion-downfall-A clear cut approach was needed to know the stability in the
dmestic market and also to understand the ground realities of the airlines industry 
The company must have improved in its ability to adapt its business with the external environment
and change the business culture to suit the demands and to avoid high potential risk. 
It must have understood to estimate the changing trends, consumer preferences and cost curtailing to
iprove profitability  There was no single CEO continued for one year in Kingfisher airlines,
SWOT ANALYSIS OF KINGFISHER AIRLINES
For your business to be successful, pleasing your consumer is the foremost thing. SWOT analysis of
kingfisher airlines will further list their strength, weakness, opportunities, and threats.
STRENGTHS OF KINGFISHER
Brand value and reputation in the mind of the consumers.
United Breweries as the parent company.
Innovation and Quality service.
Strong promotion activity.
Awarded as the most premium domestic airline.
It had flights connecting to many Indian destinations and internationally as well.
WEAKNESSES OF KINGFISHER
High ticket pricing.
Huge debt caused which led to shutting operations.
Laid-off workers created a bad image.
Tough competition from domestic as well as international players in the market.
OPPORTUNITIES FOR KINGFISHER
Helps to expand the tourism industry.
Page 29
Financial stability may have improved the operations.
They could have a good market share if able to survive in the market.
More domestic and international markets.
THREATS TO KINGFISHER
Huge pressure from aviation companies and government policy.
Rising fuel prices.
They had infrastructure issues which created a huge fall in demand for the airlines.
The economic slowdown was a great hit for the firm.
CONCLUSION
Kingfisher was a popular and successful company once upon a time. Its marketing and on-ground
promotions have made it one of the top desired and trusted companies. However, the airline firm
went into losses and created a huge downfall in the market. Therefore the firm tries to regain its
brand image through other industries as we saw from the above campaigns.
REFERENCE
http://kingfisher.com
http://kingfisherairlime.com
http://king.airlines.com
APPENDICES
2020, February5).
Page 30
CASE 4
REASON FOR EXIT OF LG MOBILE SECTOR?
EXECUTIVE SUMMARY
LG is a South Korean company that was one of the leading manufacturers of mobile phones. The
company has maintained the No 3 position in the manufacturing of the smartphones for a very long
time. The company has been finding it hard to maintain its financial position and to increase the sales
of the mobile phones amid the competitors.
Recently the company has announced that it is going to shut down the mobile phone business. Let’s
look at why the company has decided to shut down its mobile phone business.Statement released by
LG
LG has become the latest legacy phone to exit the mobile phone making business. The company said
that it will shut down its mobile phone business by the end of July.Reason for the shut down
The company has been struggling to compete with the global competitors such as Apple, Samsung,
One Plus, and Xiaomi who dominates the mobile phone market. Apple and Samsung are the only
brands that have maintained their sales over the years in this market.
Even the legacy phone brands such as Nokia and Blackberry have faced a lot of struggle and have
lost their market domination. LG had failed to keep their products with the competitors and the new
players are providing smartphones with better software and Operating systems at a reasonable price.
In 2007, LG was the fifth biggest smartphone maker globally. This was when the first iPhone was
launched and went into sale. In the fourth quarter of 2020, LG couldn’t get ranked in the list of top
whereas Huawei which is struggling because of certain US sanctions has managed to be in the fifth
position.
Page 31
ABSTRACT
Over the past decade, it became harder to get consumer attention in mobile because of the growth of
Android phones. LG had been experimenting with a lot of innovative designs in the last couple of
years to attract the consumers.
LG continuously focused on two segments in the market which were high-end and mid-range
smartphones. These two segments have become very competitive in the past decade because of the
Chinese smartphone manufacturers such as Huawei, One Plus, Oppo, Xiaomi, and Vivo.
These companies have been releasing new models with software updates and the latest camera
feature phones every often.
Exclusive
Why LG is Shutting down its Mobile Business after 26 years
Alan JosephAlan Joseph
Apr 6, 2021
5 min read
WHY LG IS SHUTTING DOWN ITS MOBILE BUSINESS AFTER 26 YEARS
LG is a South Korean company that was one of the leading manufacturers of mobile phones. The
company has maintained the No 3 position in the manufacturing of the smartphones for a very long
time. The company has been finding it hard to maintain its financial position and to increase the sales
of the mobile phones amid the competitors.
Recently the company has announced that it is going to shut down the mobile phone business. Let’s
look at why the company has decided to shut down its mobile phone business.
REPORT MAIN BODY
SITUATION ANALYSIS
Statement released by LG
Reason for the shut down
LG Failed to make its mar
Page 32
Statement released by LG
On 5 April 2020, LG had announced that it will shut down its mobile phone business. The South
Korean firm LG had said in a statement that their Board of Directors had approved the decision to
discontinue the business.
This unsurprising move from the company comes after its statement in the month of January, where
LG had told that it was trying to review the direction of their smartphone business. The company has
announced that it will close down its mobile business worldwide.
LG has become the latest legacy phone to exit the mobile phone making business. The company said
that it will shut down its mobile phone business by the end of July.
HCL Enterprises: A Case Study
Hindustan Computers Limited(HCL) is a multinational IT services and consultingcompany

headquartered in Noida, Uttar Pradesh, India. HCL is a pioneer of moderncomputing with many
firsts to its credit, including the introduction of the8-bit microprocessor-based computer in 1978,
well before its glo…
StartupTalky
Rishita Jain
REASON FOR THE SHUT DOWN
The company has been struggling to compete with the global competitors such as Apple, Samsung,
One Plus, and Xiaomi who dominates the mobile phone market. Apple and Samsung are the only
brands that have maintained their sales over the years in this market.
Even the legacy phone brands such as Nokia and Blackberry have faced a lot of struggle and have
lost their market domination. LG had failed to keep their products with the competitors and the new
players are providing smartphones with better software and Operating systems at a reasonable price.
In 2007, LG was the fifth biggest smartphone maker globally. This was when the first iPhone was
launched and went into sale. In the fourth quarter of 2020, LG couldn’t get ranked in the list of top
whereas Huawei which is struggling because of certain US sanctions has managed to be in the fifth
position.
Page 33
KEY ISSUES AND ENVIRONMENTOver the past decade, it became harder to get consumer
attention in mobile because of the growth of Android phones. LG had been experimenting with a lot
of innovative designs in the last couple of years to attract the consumers.
The 21st Century will be earmarked forever by the evolution of mobile phones.Mobile phones paved
way for several innovations and inventions that changed theway we function, that too for good. The
transformation from black and whitecellphones to smart devices is an intriguing one. Present day
smar…
Future of LG customers
LG has told that it will continue to sell the smartphones as long as their already manufactured and
stored inventory is exhausted. The company also said that it will continue providing services to their
existing customers such as software updates, customer support, etc. for a period of time. They said
that it would differ from one particular region to another.
On the request towards the company’s US business on how long will LG provide services to US
customers did not receive any reply. A representative of AT&T has told that they are aware of LG
shutting down their mobile phone business and added on saying that they would continue to support
the people who use LG devices on their network as LG makes this move. This step is taken by
AT&T as a commitment towards their customers
WHAT HAPPENED?
In Q1 2014, LG revealed that they had sold more than 5 million LTE-enabled smartphones, 79%
more than what they had sold for the entirety of the prior year.
It was an all-time record for the company then, and they said they had also shipped a total of 12.3
million smartphones in the year’s first trimester..
Not to mention, by then the company also had quite the portfolio of smartphones at different price
points, making them an accessible choice for many.
But several major issues would begin to plague the company’s mobile line and cause them to lose
sales at a momentum
Bootloop Issues That Broke Customer Confidence
Page 34
LG’s then-flagship phone in 2015, the G4, had bootloop issues, a problem with the hardware that
causes a phone to go into a never-ending reboot cycle. Affected users were forced to seek service
centres and received replacement G4’s, but unfortunately many replacements faced the same
bootloop issues.
This understandably broke customer confidence and maybe even trust in the brand, and in 2018, LG
settled a class action lawsuit over the bootloop issues in not only the G4, but the G5, V10, and V20,
to name a few other afflicted phones.
Compared to other smartphone brands like Samsung and Apple, LG never really pulled out all the
stops when it came to shouting out the launch of a new phone. This caused their launches to usually
fly under the radar, until something unique or quirky was pointed out in reviews.
EFFECT OF LOW SALES VOLUME
In the smartphone business, if a brand is generating loss every year it will keep generating a loss in
the upcoming time as well because assembling a product needs different components like a
processor, motherboard, camera, display, etc. Due to the low sale volume, you won’t be able to get
the best deal from the component maker. Expensive components will lead to the expensive
assembling of your product and to make a profit out of it, you will obviously sell it at a high price
and if you already have a low sale volume, the chances are very less for the success of an expensive
product. In this way, you created a loss cycle.
Unfortunately though, the one or two stand-out features were never really enough to convince
consumers to make the purchase.
One of LG’s strongest points was their experimental attitude to create unique designs, but something
they lacked was the conviction to develop them into their prime.
This made them the first to launch many then-unique designs which have since been taken and
improved by other brands at a faster pace.
LG Electronics has finally decided to consider withdrawal of its smartphone business, something
which has been rumored for a while. This move, in turn, has led to speculations about downsizing or
sale of the smartphone business. But whatever may be the final decision, it would be interesting to
trace the company’s journey before reaching this point.
Page 35
LG was once the third-largest handset manufacturer globally. In 2009, just before the smartphone
market started taking off, LG sold nearly 120 million feature phones. In 2010, LG entered the
smartphone market in earnest with the launch of Android-based smartphone Optimus. However, this
entry came relatively later than Apple and Samsung’s. Also, for a while after that, LG adopted its OS
from Microsoft instead of Android from its ‘rival’ Google. This made many existing users turn away
from LG.
In addition to the modular smartphone, LG has been continuously releasing somewhat experimental
models such as the V50 ThinQ (May 2019) and the dual-screen LG Wing (October 2020). Even as
these models have failed to gain much market share, overall profitability has deteriorated due to the
decrease in flagship sales. This, in turn, has led to a decrease in investment for new products,
including new flagship launches.
Let us have a look at LG’s smartphone sales by region.Counterpoint Research LG Smartphone Sales
by Region
North America and Latin America are LG’s biggest markets, accounting for more than 80% of its
smartphone sales. However, even here its share has been falling:
SOLUTION
LG’s share in the US smartphone market in Q3 2020: 12% (16% in 2018)
LG’s share in the Latin American smartphone market in Q3 2020: 4% (8% in 2018)
With the competitiveness of its flagships weakened, LG’s market share has a higher proportion of the
mid-to-low price segment in the US and Latin America. As a result, it faces fierce competition
frombrands such as Alcatel and Motorola, with Samsung’s A series clearly ahead of it.
LG’s models priced at $150 or less (based on wholesale price) accounted for 64% of its total sales in
Q3 2020. This is a 5 percentage points increase from two years ago. As mentioned earlier, the sales
decrease in premium models led to a decline in profitability. To enhance profitability, LG increased
Page 36
ODM share, which eventually led to a structure in which the share of mid-to-low priced products
increased.
LG, which seemed unlikely to give up its smartphone business despite rumors circulating to this
effect over the past few years, has now decided to do something about it before it is too late. The key
factors contributing to this move are:
The slump in the smartphone sector, which contrasts with the record sales reported by other sectors
such as home appliances, is even more noticeable.
The Velvet and Wing models, which were supposed to be the next big killer models, also reported
disappointing numbers.
The profit did not improve, despite the measures such as relocation of production bases to Vietnam
and expansion of ODM share.
It seems no more cards remain to be used at LG after trying various plans. However, some questions
do crop up:
What if LG had used an online-focused distribution strategy (just like realme)?
What if LG had developed a more grounded and practical 10-million-seller model with a reasonable
price (just like OnePlus) than a high-risk experimental flagship strategy such as a dual-screen phone?
What if LG had focused on the mid-to-low segment (just like HONOR) rather than flagships?
Now, the decision has apparently been confirmed, suggesting that a formal announcement from LG
should be just around the corner about the eventual demise of LG mobiles. The latter was one of the
few early movers in the mobile phones space – a market that was ruled by Nokia and BlackBerry,
but also involved Samsung and LG as key market movers. While BlackBerry is now defunct, Nokia
sells smartphones under parent company HMD Global but has simply failed to relive the market
dominance that it had in the pre-smartphone era.
For LG mobiles, the journey has been bittersweet at best. The company has always been at the front
in terms of bringing forth innovative ideas for smartphones, instead of playing the typical high
specifications-low price game played by Chinese smartphone vendors. Some of its most notable
smartphone efforts include the LG G Flex 2 from early 2015 with a curved OLED display, the LG
G5 from 2016 with a modular build that aimed to allow users to snap on whatever extra part they
pleased, and of late, even the LG Wing that could snap into a T-shaped display area and also
Page 37
included a gimbal-like camera interface. It also caught numerous eyeballs with a smartphone that had
a motorised rollable display that could extend into a tablet, or collapse into the shape of a
smartphone.
For all its efforts, though, LG mobiles could never break into the top five when it comes to sales and
shipment figures. Chinese OEMs such as Xiaomi,
OnePlus or Vivo aced the aspect of providing users greater bang for the buck, while LG mobiles
were relegated to playing the fancy innovation role that excited all but were either priced too much,
or offered too less in terms of the rest of the competition. Going forth, it remains to be seen if LG
does a double-take, or finds an eventual buyer to take its innovative smartphone dreams forward.
CRITICAL FACTOR
LG, one of the oldest and major players in the smartphone industry has another first to its name – this
time for becoming the first major company to exit the smartphone business.
The news of LG’s exit came following weeks of speculation and an unsuccessful attempt to sell the
smartphone division to Vietnam’s Vingroup.
We take a look at LG’s often bold and experimental streak of innovations in the mobile phone
industry, dating back to its entry in 2002.
LG Electronics, the South Korean giant – has exited the smartphone industry following weeks of
speculation. LG’s exit makes it the first major player to quit the smartphone business amid mounting
losses.
LG Electronics, the South Korean giant – has exited the smartphone industry following weeks of
speculation. LG’s exit makes it the first major player to quit the smartphone business amid mounting
losses.
According to a statement issued by the company, LG will complete the winding down of its
smartphone business by July 31, this year. It will continue to sell the existing inventory of phones
even after shutting shop, until stocks last.
Earlier, a Reuters report confirmed LG’s exit, stating that LG’s smartphone division had been
making losses for the last 6 years – totaling to $4.5 billion in the time. The report also adds that LG
tried to sell the smartphone division to Vietnam’s Vingroup before talks fell through.
Page 38
LG has a notable presence in the US, with a market share of 9% in the December 2020 quarter,
according to Counterpoint Research. Its exit will allow Apple and Samsung to gobble up even more
market share.
LG has been known for coming up with really good innovations. Some of these include being
amongst the first companies to launch phones with ultra wide angle cameras that let you capture a
much wider scene when compared to regular cameras.
Apart from that, LG was also the first to come up with high-resolution Quad HD displays, phones
with two selfie cameras or the wacky phones with two displays – like the LG Wing.
LG will provide service support and software updates for customers of existing mobile products for a
period of time which will vary by region. LG will work collaboratively with suppliers and business
partners throughout the closure of the mobile phone business. Details related to employment will be
determined at the local level.
Moving forward, LG will continue to leverage its mobile expertise and develop mobility-related
technologies such as 6G to help further strengthen competitiveness in other business areas. Core
technologies developed during the two decades of LG’s mobile business operations will also be
retained and applied to existing and future products
ASSUMPTIONS
The wind down of the mobile phone business is expected to be completed by July 31 although
inventory of some existing models may still be available after that.
By July 2021, the world may be saying its final goodbye to LG Electronics Inc’s global mobile
division. That’s when they’re expected to wind down, although the sales of their devices and
replacement parts will continue for stocks that are still available on the market.
In 2015, the G4 brought to the table a leather back on some variants, a feature which Huawei, Oppo
and Vivo have copied since then. It also had a microSD expansion and a removable battery, the latter
being a feature LG would have in several of their future smartphones too.
It hit off with a certain group of users because it enabled them to replace and charge the empty
battery on the go via “cradles” LG also sold
One of the most talked-about LG smartphones in history may just be the V20, launched in 2016. It
was the first of LG’s smartphones to offer the Quad DAC, a system that enhanced the audio quality
of the port.
Page 39
It would go on to become a hallmark feature of LG’s smartphones, making them the go-to for
audiophiles, DJs and musicians.
Other revolutionary and unique smartphone designs LG came up with over the years include the LG
G Flex, the world’s first flexible smartphone, the V40 with its five cameras (another world’s first for
LG), and the LG dual screen case.
When its competitors were looking into foldable phones, LG took a different route and instead
offered users an optional second screen they could attach and detach to their V50, G8x, and V60.
In 2018, we saw this achieved with their Software Upgrade division, yet for some reason, few
changes were seen in their slowness.
Take for example the ultra-wide camera function and their initial bezel-less push with the G2, both
features which have been made popular by their competitors instead.
SWOT ANALYSIS
STRENGTH
LG Electronics has finally decided to consider withdrawal of its smartphone business, something
which has been rumored for a while. This move, in turn, has led to speculations about downsizing or
sale of the smartphone business. But whatever may be the final decision, it would be interesting to
trace the company’s journey before reaching this point.
LG was once the third-largest handset manufacturer globally. In 2009, just before the smartphone
market started taking off, LG sold nearly 120 million feature phones. In 2010, LG entered the
smartphone market in earnest with the launch of Android-based smartphone Optimus. However,
this entry came relatively later than Apple and Samsung’s. Also, for a while after that, LG adopted
its OS from Microsoft instead of Android from its ‘rival’ Google. This made many existing users
turn away from LG.
However, LG sought to turn around by launching the G series in 2013 to take on the Samsung
Galaxy S. The G3 and G4 models performed well and the market share seemed to be growing again.
But the 2016 experiment of launching a modular smartphone, the G5, didn’t click with the users and
LG’s decline started from there.
WEAKNESS
Page 40
The market share of LG smartphones has continued to decline after reaching about 4% in the second
quarter of 2017. It has been below 2% since the third quarter of 2019.
Counterpoint Research LG Global Smartphone Market Share
Let us have a look at LG’s smartphone sales by region.
Counterpoint Research LG Smartphone Sales by Region
OPPORTUNITY
North America and Latin America are LG’s biggest markets, accounting for more than 80% of its
smartphone sales. However, even here its share has been falling:
LG’s share in the US smartphone market in Q3 2020: 12% (16% in 2018)
LG’s share in the Latin American smartphone market in Q3 2020: 4% (8% in 2018)
With the competitiveness of its flagships weakened, LG’s market share has a higher proportion of the
mid-to-low price segment in the US and Latin America. As a result, it faces fierce competition from
brands such as Alcatel and Motorola, with Samsung’s A series clearly ahead of it.
LG’s models priced at $150 or less (based on wholesale price) accounted for 64% of its total sales in
Q3 2020. This is a 5 percentage points increase from two years ago. As mentioned earlier, the sales
decrease in premium models led to a decline in profitability. To enhance profitability, LG increased
ODM share, which eventually led to a structure in which the share of mid-to-low priced products
increased.
LG, which seemed unlikely to give up its smartphone business despite rumors circulating to this
effect over the past few years, has now decided to do something about it before it is too late. The key
factors contributing to this move are:
The slump in the smartphone sector, which contrasts with the record sales reported by other sectors
such as home appliances, is even more noticeable.
The Velvet and Wing models, which were supposed to be the next big killer models, also reported
disappointing numbers.
The profit did not improve, despite the measures such as relocation of production bases to Vietnam
and expansion of ODM share.
Page 41
It seems no more cards remain to be used at LG after trying various plans. However, some questions
do crop up:
Counterpoint Research LG Global Smartphone Market Share
including new flagship l
THEART
LG G Flex with self-healing back and with a curved display technology
The nexus lineup by Google was manufactured by LG for many years
And many other innovative feature-loaded mobile devices were introduced by LG itself. Then the
question is “what went wrong ?”
The Lack of Consistency and Lack of Good Marketing Strategy
We can say that LG is the kind of student who prepares for exams very well throughout the year and
their hard work also reflects but fails to score a good position when results announce.
We can say that LG is the kind of student who prepares for exams very well throughout the year and
their hard work also reflects but fails to score a good position when results announce.
CONCLUSION
LG’s poor financial performance in their smartphone business and the information regarding it has
been public for the past few years. Just like other legacy phones even LG has failed to retain in the
mobile manufacturing business and to turn things around.
For all its efforts, though, LG mobiles could never break into the top five when it comes to sales and
shipment figures. Chinese OEMs such as Xiaomi, OnePlus or Vivo aced the aspect of providing
Page 42
users greater bang for the buck, while LG mobiles were relegated to playing the fancy innovation
role that excited all but were either priced too much, or offered too less in terms of the rest of the
competition. Going forth, it remains to be seen if LG does a double-take, or finds an eventual buyer
to take its innovative smartphone dreams forward
REFERENCE
http://lgindustry.com
http://Lgmobils.com
http://casestudy.Lifesgood.Com
http://news.wikipidia.lg.com
APPENDICES
2020, February5).
CASE 5
WHAT IS THE REASON FOR DOWNFALL OF BLACKBERRY IN THE

MARKET?
EXECUTIVE SUMMARY
Page 43
BlackBerry was a brand of smartphones, tablets, and services originally designed and marketed by
Canadian company BlackBerry Limited (formerly known as Research In Motion, or RIM).[1]
Beginning in 2016, BlackBerry Limited licensed third-party companies to design, manufacture, and
market smartphones under the BlackBerry brand. The original licensors were BB Merah Putih for the
Indonesian market, Optiemus Infracom for the South Asian market, and BlackBerry Mobile (a trade
name of TCL Technology) for all other markets.[2][3] In summer 2020, the Texas-based startup
OnwardMobility signed a new licensing agreement with BlackBerry Limited to develop a new 5G
BlackBerry smartphone. OnwardMobility was cooperating with BlackBerry Limited and FIH Mobile
(a subsidiary of Foxconn)[4] as they “sought to revitalize the iconic BlackBerry brand through an
Android-based, next-gen Wi-Fi device.”[5] However
, Historically, BlackBerry devices used a proprietary operating system—known as BlackBerry OS—

developed by BlackBerry Limited. In 2013, BlackBerry introduced BlackBerry 10, a major revamp
of the platform based on the QNX operating system. BlackBerry 10 was meant to replace the aging
BlackBerry OS platform with a new system that was more in line with the user experiences of
Android and iOS platforms. The first BB10 powered device was the all-touch BlackBerry Z10,
which was followed by other all-touch devices (Blackberry Z30, BlackBerry Leap) as well as more
traditional keyboard-equipped models (BlackBerry Q10, BlackBerry Classic, BlackBerry Passport).
In 2015, BlackBerry began releasing Android-based smartphones
By the year 2009-2010, the BlackBerry smartphone gathered more than 85 million users who
contributed highly to the success graph of this company. In fact, Blackberry owned over 50% of the
US market share as well as 20% of the Global Market share at a single time.
However, by the year 2010, a sudden downfall occurred in the growth of BlackBerry. And soon by
2012, it came down to less than 5% of the market share. So, the question arises, How all of a sudden
BlackBerry failed?
This came up to these points:
Report main body
The Reddit forum/wallstreetbets holds the dependence of the growth to great profit as the technology
company is suffering for a long time. Rather of the fact that BlackBerry shares rise from day traders.
Page 44
Failed to strengthen the innovative features and resulted in being the example for the changes
occurring in smartphones.Other companies are evolving with great fascinating and advanced
features, while BlackBerry suffered majorly in offering new features for the convenience of
customers.Hardware Innovation
With the evolving technology, BlackBerry was considered to be overpricing on its average hardware
system. Soon as Apple and Samsung launched their smartphones with a complete touch screen body.
Also, after the typing is done, the keyword would disappear giving you a huge space for other
purposes. However, BlackBerry with its QWERTY keyboard lacked such features and became a
bigreason for BlackBerry to fail.
Nonetheless, Blackberry did not invest in making a complete touch screen body, instead, it kept
making phones with the outer keyboard such as Blackberry Key 2. That’s why its sales dropped by a
major number.
Furthermore, BlackBerry only focused on enterprise-level marketing and neglected the consumer
portion. This also played a big role in its failure.
List of critical factors
BlackBerry did not fail. It lacked innovation and advanced features because it has always been up
with technology and supervisions. But the reason why BlackBerry failed is money.
BlackBerry’s innovation and features came from Research & Development (R&D). But this required
money and due to the decreased sales and other failures, it could not invest its money in the R&D.
That’s why BlackBerry could not evolve from its basic potential. Later, BlackBerry’s brand was sold
by RIM to TCD (a Chinese firm).
OPERATING SYSTEM
BlackBerry’s operating system lacked some major features and technology. It does not allow the
developers to build apps on an abundance scale. Other Operating systems give a free directory for
developers to build apps accordingly.
However, Android and iOS allowed the customization of applications as they could be removed
andadded as per the convenience of users.
Page 45
Therefore, developers were absolutely happy with Android and iOS. Still, BlackBerry kept on
developing its own OS which was a disaster.
BlackBerry ultimately brought new smartphones with demanding features to regain its lost
significance and customers. It launched Priv with the features like a dual-curved UHD display, pop-
up widgets, 3GB RAM and snapdragon 808 CPU. But, this was too late. The phone was an absolute
failure. Its product quality and features lacked some major technology.
BlackBerry did not imply adding new features or advanced OS and because of this, the potential
consumers of BlackBerry shifted back to Android and iOS.
STATEMENT OF PROBLEM
The reasons BlackBerry failed is that it didn’t adapted new technology, lack of consumer insight and
poor design which led to its demise.
WHEN WAS BLACKBERRY FOUNDED?
Blackberry was founded in 1984.
WHEN DID BLACKBERRY GO OUT OF BUSINESS?
Blackberry in 2016 decided to stop making its own phones, after years of failures.
Audience
BlackBerry mainly concentrated on the richer segment of the society like businessmen, celebrities,
and other rich users. They carried BlackBerry presenting their superiority and other features like end-
to-end encryption security and email services.
But even though iPhone sales increased and BlackBerry started losing some of its consumers,
BlackBerry only focused on businessmen and celebrities and ignored the consumer segment. That
had a major role in the company’s downfall.
ASSUMPTIONS:
The BlackBerry was designed and developed by RIM (Research in Motion) in 1999. This is a
Canadian company.
RIM is a multinational Canadian telecommunication and wireless equipment company.
RIM also provides secure and highly reliable software for industrial applications and mobile device
management (MDM).
Page 46
BlackBerry software and hardware products are used by various government agencies and carmakers
and industrial plants around the world, most of whose activities are invisible to the public.
RIM is headquartered in Waterloo, Ontario, Canada. It was founded in 1984 by Mike Lazaridis and
Douglas Fregin.
In 1992, Lazaridis hired Jim Balsillie, and Lazaridis and Balsillie served as co-CEOs until January
22, 2012.
S.W.O.T ANALYSIS
First, let’s take a look at how BlackBerry makes a good market share in the mobile market. But after
that, we’ll use the BlackBerry Downfall story.
The device is known as the BlackBerry because the buttons on its black phone look like BlackBerry
ruit badges.
In 1984, in Research in Motion (RIM), the name was later changed to BlackBerry. In 1999, RIM
introduced the BlackBerry 850 pager.
This device can receive push emails from Microsoft Exchange Server using its complementary
server software, BlackBerry Enterprise Server (BES). This feature sets the company’s future for
enterprise-oriented products.
STRENGTH
BlackBerry gained a global mobile market.
The first BlackBerry smartphone, the BlackBerry 957, was launched in April 2000.
BlackBerry OS platform and BES functionality continue to increase. Adding encryption and
S/MIME support has increased the use of BlackBerry devices by governments and businesses.
RIM soon introduced BlackBerry devices to the consumer market, so BlackBerry was no longer
limitedto corporate and government officials.
RIM has introduced the BlackBerry Pearl 8100 – the first BlackBerry phone to include multimedia
features such as a camera. BlackBerry introduced two more versions, the Curve 8300 Series and the
Bold 9000
Internal factors:
Page 47
In its efforts to regain market share, BlackBerry has lost a number of key figures in its management.
In 2012, co-CEO Jim Balsillie resigned from the board of directors.
Mike Lazaridis was against Jim’s idea of shifting BlackBerry’s focus to its instant messaging app
(BBM).
Founder Mike Lazaridis was also against the launch of BlackBerry’s touch screen phone BlackBerry
Z10
WEAKNESS
The iPhone was a fully integrated browser that was missing in the BlackBerry.
Rim, it was using an early browser that restricts data usage. Consumers could not take full
advantage. Another thing is that the users could not take full advantage of the data package on the
BlackBerry phone.
Apple had signed a special agreement with its AT&T rival, so Verizon Wireless was frozen on
iPhones. In the past, Reim’s smartphones have been heavily influenced by Verizon Wireless.
OPPORTUNITY
Verizon executives contacted RIM in June 2007, asking if RIM could develop an “iPhone killer.”
It was RIM’s first touch screen device and was difficult to operate. The device was also slow and
small. RIM failed to deliver “iPhone Killer”, Verizon Wireless decided to abandon the Storm
campaign.
Android operating smartphones began stealing market share from Palm and Microsoft and eventually
RIM.
After all, RIM was now focusing on building a device like Apple’s successful iPad tablet.
It turned out to be “a weird stuff” for RIM’s smartphones and lacked email, contacts and apps.
Other factors:
There are other factors that can cause BlackBerry to crash.
Google makes its Android operating system available for free. BlackBerry has not been able to cut
prices to maintain market share, which is why it is losing to Android.
Page 48
Android was made free for any handset maker that caused BlackBerry to lose massive orders. With
all of Rim’s new products failing, it lost market share in Apple and Android phones.
With the growing demand of users who want to surf the internet on their phones, RIM plans to
release its 4G phone. It was the BlackBerry 10, another product that was delayed.
THREAT
Thus 2011 became an important place for RIM, its stock price fell from $69 (Canada) in February to
less than $15 by the end of the year.
We know for sure where BlackBerry came from before November 2013.
Long ago, this ‘individual communicator’ was called the following great thing.
Interactive was launched in 1996 as RIM’s first handheld specialty gadget. Over the years, RIM
continued to make significant strides and significantly expanded the handheld special gadget.
It was RIM’s first touchscreen device and was difficult to operate. The device was also slow and
buggy. RIM had failed to deliver the “iPhone Killer” Verizon Wireless decided to abandon the storm
campaign
CONCLUSION
Blackberry failed to anticipate the emergence of the “app economy” which drove massive adoption
of iPhone and Android-based-devices.
Consumers no longer cared much for battery life or security features, they cared about apps. Apple
and Google operating systems were built for making it easy on external programmers to create apps.
Blackberry apps built on old programming languages were uglier and stifled creativity.
RIM also exerted strict control over developers, costing Blackberry trending apps such as Instagram
and Tumblr.
After all these RIM was now focusing on building a device like Apple’s successful iPad tablet.
It proved to be “an awkward accessory” to RIM’s smartphones and lacked e-mail, contacts and apps.
Google makes its Android operating system available for free. Blackberry was unable to drop prices
to retain the market share it was losing to Android.
Page 49
Android was made free to any handset maker causing Blackberry to lose orders massively. With
RIM’s new products all failing, it continued to lose market share to Apple and Android phones.
Growing demands of customer who wanted to surf the Internet on their iPhones, RIM planned to
release its 4G phone. This was the Blackberry 10, which was another product that was delayed.
Following fast development also, advancement, RIM built up a progressive pager, a gadget that can
be utilized to send and get messages which utilized their correspondence innovations
Following fast development also, advancement, RIM built up a progressive pager, a gadget that can
be utilized to send and get messages which utilized their correspondence innovations.
Before long, this ‘individual communicator’ was named as the following enormous thing.
The Inter@active was sent in 1996 as RIM’s first handheld specialized gadget. In the following
years, RIM proceeded with a line of developments and enhanced the handheld specialized gadget
significantly.
By 1999, RIM propelled the Blackberry rebranded gadgets and email administrations which
permitted clients to synchronize their gadgets with corporate email frameworks.
REFERENCE
http::blackberryWikipedia.com
:http::new.bbmobilesWikipedia.com
:http:mobile newsWikipedia.com
APPENDIES
BlackBerry’s failure to keep up with Apple and Google was a consequence of errors in its strategy
and vision. First, after growing to dominate the corporate market, BlackBerry failed to anticipate that
consumers — not business customers — would drive the smartphone revolution. Second, BlackBerry
was blindsided by the emergence of the “app economy,” which drove massive adoption of iPhone
and Android-based devices. Third, BlackBerry failed to realize that smartphones would evolve
beyond mere communication devices to become full-fledged mobile entertainment hubs.
BlackBerry insisted on producing phones with full keyboards, even after it became clear that many
users preferred touchscreens, which allowed for better video viewing and touchscreen navigation.
Page 50
When BlackBerry finally did launch a touchscreen device, it was seen as a poor imitation of the
iPhone. BlackBerry saw its devices as fancy, e-mail-enabled mobile phones. Apple and Google
envisioned powerful mobile computers and worked to make sending e-mail and browsing the Web as
consumer-friendly as possible.
Founded in 1984 as a consulting business called Research in Motion in Waterloo, a suburb of

Toronto, the company introduced its first BlackBerry device in 1999. For e-mail-obsessed Wall
Streeters and other corporate users, it was a godsend. BlackBerry pioneered “push e-mail,”
meaning that users simply received their messages when they were sent, instead of having to
constantly check for new e-mails. BlackBerry’s QWERTY keyboard was like an epiphany: no more
pecking at a numeric keypad to eke out messages. In the years that followed, the BlackBerry
keyboard spawned a whole generation of dual-thumb e-mail warriors.
As the BlackBerry exploded in popularity, especially among business customers, the company
became Canada’s most valuable firm, leading some to dub Waterloo Canada’s Silicon Valley
. But while BlackBerry was resting on its laurels atop the corporate mobile market, Apple and
Google were laser-focused on the consumer market, which they correctly predicted would drive
smartphone adoption.
In January 2012, BlackBerry announced that its co-CEOs Jim Balsillie and Mike Lazaridis would
step down and be replaced by Thorsten Heins, a German-born executive who joined the company in
2007. Nearly two years later, Heins has not yet been able to execute a turnaround.
Today, the production of BlackBerry smartphones has been completely shut down. It has turned back
to software and mobile security solutions. BlackBerry succeeded in the market because of its
advanced technology and left behind the less-evolved technology. Yet when it came to evolving
BlackBerry’s technology, it failed because of its incapability to judge and compete with the
competition level of the market.
BlackBerry left some major points and examples for other tech companies that to survive in the
technology world, you need to keep evolving your features and technology.
Page 51

Case Study Finally Finally Over

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Case Study Finally Finally Over

Uploaded by

Copyright:

Available Formats

VASAVI JNANA PEETHA FIRST GRADE COLLEGE

REASON BEHIND MOTOROLA FAIL ?

REPORT MAIN BODY

, but didn’t carry the day.

Motorola is a loose confederation of warring tribes. Of course it is. It is a company of 66,000

KEY ISSUES AND ENVIRONMENT

LIST CRITICAL FACTOR

The company was focused…show more content…

Y “Motorola is a major player in a fierce electronic revolution of global dimension.” (Entrepreneur

SWOT ANALYSIS OF MOTOROLASTRENGTHS

Most of their products have high quantity of defects.

WHAT IS THE REASON BEHIND MICROMAX FAILURE ?

EXECUTIVE SUMMARYMicromax is an Indian consumer electronics company headquartered in

What happened to micromax – factors that led to the fall!

REPORT MAIN BODY

SOLUTION FOR QUESTION IN CASE STUDY

WHAT SHOULD MICROMAX WORK ON RIGHT NOW?

QUALITY AND SPECIFICATION?

This is where the game changed for Micromax.

REASON BEHIND DOWNFALL OF KINGFISHWER

Lack of stability at the apex level of management

REPORT MAIN BODY

Switching from Premium Class Airline to the Low Budget Segment

SOLUTION FOR QUESTION OF CASE STUDY

VISION OF THE COMPANY

1. Decrease in safe operating standards or evidence of cutting corners.

2. Fall in training standards.

3. Significant turnover of personnel.

4. Delayed meeting payroll.

5. Insufficient aircraft maintenance.

6. Storage for supplies and spare parts. 7. Decrease in frequency of flights

8. Sales or repossession of aircraft and other major equipment Items.

REASONS BEHIND THE DOWNFALL?

WORST DECISION MADE?

RISE IN FUEL PRICES?

THERE ARE A LOT OF REASONS WHY KINGFISHER AIRLINES FAILED

LACK OF PROPER MANAGEMENT

SWOT ANALYSIS OF KINGFISHER AIRLINES

Brand value and reputation in the mind of the consumers.

United Breweries as the parent company.

Innovation and Quality service.

Strong promotion activity.

Awarded as the most premium domestic airline.

It had flights connecting to many Indian destinations and internationally as well.

High ticket pricing.

Huge debt caused which led to shutting operations.

Laid-off workers created a bad image.

Tough competition from domestic as well as international players in the market.

OPPORTUNITIES FOR KINGFISHER

Helps to expand the tourism industry.

Financial stability may have improved the operations.

More domestic and international markets.

Huge pressure from aviation companies and government policy.

Rising fuel prices.

The economic slowdown was a great hit for the firm.

REASON FOR EXIT OF LG MOBILE SECTOR?

Why LG is Shutting down its Mobile Business after 26 years

Alan JosephAlan Joseph

WHY LG IS SHUTTING DOWN ITS MOBILE BUSINESS AFTER 26 YEARS

REPORT MAIN BODY

Reason for the shut down

LG Failed to make its mar