Motorola Motorola Corporation: Overview Motorola first appeared in the market under the name Galvin Manufacturing Corporation in 1928. The present name, Motorola, was adopted in 1947, although the trademark Motorola had been already used in the 1930-ies (Motorola Website, 2007).
The companys founders were Paul Galvin and Joe Galvin. From the very beginning the company was aimed to manufacture car radios, however, soon enough the company started its operation in a wider market, and began manufacturing radio-related products, ranging from the first walkie-talkie in the world to battery eliminator for radios, from cellular infrastructure equipment to defense electronics and mobile phone manufacturing. Apart from that, the company was strong in semiconductor technology. Nowadays, Motorola Corporation operates in telecommunications industry.
The company builds, markets, and sells various services, products, and applications aimed to make connections to people, entertainment, and information via broadband, embedded systems, as well as wireless networks. Nowadays the company has three major segments, such as Networks and Enterprise, Mobile Devices, and Connected Home Solutions. Motorola provides various types of wireless handsets that transmit and receive images, voice, text, multimedia, and other types of communication, information, and entertainment. The company also offers to its customers a family of point-to-multipoint and point-to-point wireless broadband devices and products. Motorola is a giant in telecommunication industry, with its revenue $41.2 billion USD in 2006, and net income $4.578 billion USD in 2005 (Motorola Website, 2007).
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The company employs over 66,000 workers as per December 2006. Motorola’s easily recognized slogans are “Hello Moto and Intelligence Everywhere.
Apart from that the company undertakes all efforts to retain its strong position in the market, through strong marketing, business, and advertising strategies, as well as through various mergers and acquisitions. For example, in 2007 the company the Mobile Devices acquired Good Technology (January 2007), Inc, Connected Home Solutions acquired Netopia, Inc (February 2007), Tut Systems, Inc. (March 2007), Modulus Video, Inc. and Terayon Communication Systems, Inc (July 2007), and Leapstone Systems, Inc (August 2007) (Motorola Website, 2007).
Yet, although the company has very strong position in the markets (both, international and domestic ones), similar to any other corporation, Motorola, Inc has its strength, weaknesses, threats, and opportunities. Motorola Corporation: Strengths Motorola Corporations strengths are in its innovations, net sales, software and marketing development. Apart from that, the corporation has strong position in international and domestic markets, being a leader in communication industry.
Motorola’s openness, leadership, and passion of its executives also belong to the company’s strengths. The company’s strategy related to the mergers, acquisitions, and strategic alliances are also the company’s strengths. Motorola Corporation: Weaknesses Motorolas weaknesses are mainly its products, as the overall quality of its products is not very high. Failing to provide the customers with appropriate quality often leads to the customers dissatisfaction with the products and services offered by Motorola, and results in poor customer relations. Relatively poor service and a high number of products with defects are also the corporations weaknesses. Apart from that, the company is known for its quire inefficient and poor employee training, education, morale and motivation.
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In addition, being a giant in the industry relates both to strengths and to the companys weaknesses. The international telecommunication market is in condition of oversupply and the telecommunication companies have to be sure that their products and services are indeed what their customer want. This becomes especially worrying issue in the terms of high competition between the companies in this market segment. Apart from that, another threat is that the company has to keep producing and selling its products and services in order to retain Motorolas operational efficiency. Probably, this is the reason that Motorola Corporation starts to shift to new emerging markets in order to increase its profits and to retain its positions as a giant in telecommunication industry. Motorola Corporation: Opportunities What concerns opportunities, the company has a perfect opportunity to strengthen its positions in the market through new mergers, business alliances and acquisitions.
Apart from that, the corporation may learn new technologies and strategies from the Japanese telecommunication market, and have unbounded opportunities to enter international markets worldwide. Motorola Corporation: Threats The corporations major threat is its competitors, both in international and domestic markets. This is especially worrying issue, if taking into account that the company’s competitors (majorly Japanese and Chinese ones) are able to flood the markets with low-price and better quality products and services in telecommunication industry. The corporation faced some trade and commerce problems related to difficulties in entering Japanese markets. In addition, when entering the U.S. market, the company also faced some problems, and the U.S. government was of little help to assist the company to stop Japanese competitors and to help the U.S.
enterprises. In addition, Japanese government has quite strict standards concerning the quality of the products, as well as cost, efficiency, and customer relations. In addition, the market share for cellular phones and pagers declines, thus causing additional problems for Motorola. Foreign competitors also pose a threat to Motorola Corporation. Strategic Alternatives and Recommended Strategy Taking into account all information provided in the sections related to Motorolas weaknesses and threats, the companys recommended strategy should be focused on becoming customer service- and quality-oriented. The customers are not satisfied with the companys quality of their top end products and consider the customers service to be pathetic and dissatisfying.
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Although in 1981 the company has launched a drive for a drastic improvement in the quality of its products and services, their attempts had quite poor success. The companys target was 3.4 defects per one million products (Six Sigma program).
However, the customers still complain on Motorolas products and consider that Motorolas quality standards are quite poor. Apart from that, the customers often complain on Motorolas service and Motorolas employee due to their poor education, training, and motivation. In such a way, recommended strategy is to enhance quality of Motorolas products and services and improve Motorolas employees motivation, education, and training, at the same time adding value to Motorolas products and undertaking all efforts to enhance customers satisfaction. Motorola should understand that loyal customers are the most important business asset, which is especially important in conditions of high competition level in telecommunication industry.
Implementation The implementation of recommended strategy will take approximately five years and, if properly implemented, will allow the company to significantly reduce the number of defects in Motorolas products, and significantly increase the motivation level in Motorolas employees, as well as equip Motorolas employees with additional skills through implementation of various educational programs and training. The customer- and quality oriented strategy will allow Motorola to enhance its efficiency and optimize the capability to target its customers and their needs. The recommended strategy, therefore, will include top-level meetings aimed to review Motorola quality programs. The results will be passed on through the company, and all levels on Motorola Corporation will be involved. The non-executive employees of Motorola Corporation will make their direct contribution via Participative Management Program. Under this program high-quality work will be rewarded, and the employees will get an opportunity to get financial reward in accordance with their contribution in Motorola’s operations.
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In addition, Motorola will establish its training and educational center in order to increase the employee’s knowledge and skills related to Motorolas operations, quality matters, and other important issues ranging from designing for manufacturability to quality improvement and enhancement of customer satisfaction level. The company will also implement a range of programs and initiatives aimed to add value to its products and services and enhance the level of customer loyalty. These initiatives will include various customer surveys, customer loyalty programs, field audits, complaint hotlines, as well as other customer feedback initiatives that will be conductive to quality improvement. Evaluation and Control As far as strategic planning is a never-ending process, Motorola will have to develop an efficient system to monitor and evaluate the implementation success on an ongoing basis. Motorola will have to consistently compare results with the objectives and to make corrections and modifications if required. Apart from that, Motorola will have the control mechanism that will be able to provide and revise recommended strategy and its implementation, in case it will be necessary.
References Motorola Website. (2007).
Retrieved December 7, 2007, from http://www.motorola.com.