Motorola News

Motorola Company was founded in 1928 in Chicago by two brothers; Paul and Joseph Galvin as the Galvin Manufacturing Corporation. Their first device was ‘battery eliminator’a device that connected direct current, to the alternating current. In 1947, Galvin Manufacturing Corporation changed its name to Motorola, Incorporation.

Motorola is one of the major leading telecommunication industries in the world. It is located in Schaumburg, Illinois. It manufactures wireless telephone handsets, design and sells wireless network infrastructure gadgets e.g. signal amplifiers and cellular transmission base stations. Motorola has been a global leader in providing wireless, automotive and broadband communications. It has become a global communication leader powered by passion to invent and an unceasing commitment to advancing the way the world connects.

Motorola is well known for communication and technology innovation through their distinctive brands and many technological breakthroughs (Peter Drucker) Motorola strives to bring together new technologies, new markets and new talents to discover tomorrow’s technological solutions. For 80 years it has been in the forefront of communication inventions and innovations. DynaTAC (Dynamic Adaptive Total Area Coverage) a mechanism that helped to carry first words from the moon and leading the cellular communication revolution was discovered by Motorola; HDTV (All –digital high-definition television is one of the major achievements of Motorola. Motorola is both service and product provider they provide mobile phones, accessories, cordless phones, home networking and many more phones, accessories and Walkie talkies among many other.

Formal vision and mission statement of Motorola

A mission statement states exactly what the business is, with the rapid convergence of broadband internet and growth of mobile communication Motorola has designed their mission statement as; ’to be the leading product provider of innovative products that meets the expanding needs of customers around the world’. It will achieve their mission through offering portfolio of technologies, solutions and services including digital entertainment services, wireless access systems, voice and data communication systems, and enterprise mobility solutions that makes mobile experiences possible.

Motorola’s vision is this’ I work for one company with shared vision where inclusion is embedded in all that we do’. Basing my argument on characteristic of effective mission statement, Motorola has been in the front line in order to achieve their vision. To do this they launched a three year strategy during the year 2006. The strategies were to make the company inclusive workplace, work force and market place. During year 2006 they tried to strive on aligning their goals; This was through assessing organalization, defining company goals and strategies, and alignment with key stakeholders; establish baseline for year over year metrics; the next strategy is through process integration which involves integrating and fine tuning government for diversify business councils and alignment of goals; through shared accountability by modifying the strategies and reviewing of action plans, Motorola has been able to meet its vision objectives.

Through their effective plan on mission and vision statements, Motorola has achieved the maximum success that any company in the world is striving to achieve.


Swot analysis of Motorola

Evaluation of internal and external environment of a company is important for its strategic planning. Internal factors that affect organization are strengths and weakness, and external factors are opportunities and threats. The SWOT analysis provides information that is helpful in matching the firm's resources and a capability to the competitive environment in which it operates.

Strengths- Motorola Company is the leading provider of wireless handsets, communication and broadband systems. It is also the only sole supplier of iDEN network infrastructure to Sprint Nextel. According to the research that was conducted by ABI on IP-STB market Motorola emerged as a strong and prominent player. Motorola already had a good pedigree with STB. It managed acquired Kreaatel which is an IP-STB leader; as a result it gained greater entrée into European market and outside North America base. Motorola Company has also proven technologies from its own and others video platforms.

Opportunities- Motorola’s brands are well placed in the market; they have strong promotional strategies by using different tools, and their willingness to take risks through product innovations. Motorola has been involved with the ongoing rollout of Telco TV services by Verizon and this has helped it to be well positioned in the rapidly growing market. Principal analyst Michael Arden states that Motorola has some products that can help it to get into hybrid market more easily than their competitors. From 1967 Motorola has been able to expand to many countries including France, Taiwan, Japan ,Italy, South Korea, United Kingdom, Hong Kong and many more other countries where it has continued to penetrate in new markets..

Weaknesses- Overall quality of its operations products and business practices sometimes make customers to be unhappy, some of their products have high number of defects, Low employee education, training and motivation. Cellular business of Motorola has gone down making the company to lose most of their prestigious customers around the world. Motorola's phone network equipment business also suffered declining sales and orders.

Threats- Competition from Japan where they have flooded the market with high quality products which are cheap, Lack of government protection against outside competitors and Market sharing with foreign competitors. Motorola is not the only company in wireless industry but there are other companies like ADB which has very significant opportunities due to a very strong product lineup in the hybrid IP-DTT STB arena. This company has been getting very good attraction in Western Europe where it has established a market niche. This is a major threat to Motorola. Another threat facing Motorola is how to outdo their competitor Sagem Communication which was ranked high in the market in France because of its strong position in the market.
Key external environmental trend affecting Motorola

Competition from Japan where they have flooded the market with high quality products which are cheap.
Market sharing with foreign competitors.
Trade barrier as they cannot penetrate in Japanese market.
Internal capabilities and resources of Motorola

High quality standard in use of their products.
Have strong marketing team.
Management team that is well effective in developing effective strategies and plans.
PESTEL analysis for Motorola

Rivalry among competing firms. Companies must compete fiercely to survive and sometimes have to collude to gain competitive advantage over others. Motorola need to differentiate their products, use cost leadership and offer low cost to their customers to outdo their competitors in the market (Christine Gallen, 2003).

Potential entry of new competition. In the market there are potentially new service providers who are coming up with new ideas and different products which can compliment Motorola’s products and services to consumers.

Potential entry of substitute products.These is products that accomplish the same purpose or fulfil the same need. Motorola need to indentify their potential substitute products for their services in order to help them design a competitive strategy.

Bargaining power of suppliers. Buyers exert considerable influence on producers. Motorola Company has major buyers who buys in large volume relative to the total industry and it should strive to make sure that their customers are satisfied with what they have in the market.

Bargaining power of consumer’s .As prices of digital products dropped more consumers entered into the market increasing Motorola’s demand. Overall market for consumer’s electronics is predicted to rely heavily on innovations and technology. -

5.1 key resources

Motorola has in the past and continue to lead beating all odds because of its resources both tangible and intangible. Intangible resources are employees who are dedicated and motivated towards achieving company goals, through experts who are very innovative in technology, knowledge management that is important for any company to succeed has been experienced in Motorola industry and it has surely emerged as victor in delivering their services. Tangible resources are their products which are widely used worldwide. Also Motorola is governed by administrators who have abilities that suits company future. These administrators are very talented and acquire the required skills in technology and general electric.

Capabilities of Motorola are that it has experienced employees who are expertise in the area of technology, has well laid out marketing plan, and is financially stable. Also an outstanding company leader who runs the company has contributed to its success. Motorola through its wide spread net around many countries has been able to make loyal customers who are always returning for the quality products that meets their demands.

Core competence. Innovation is the core competence of Motorola as it brings competitive advantage. By creating new products and enhancing them brings about differentiation. Process innovation can lead to lower costs and improved customer satisfaction and this has seen Motorola achieving large market share globally. Motorola has also build there core competence on providing strong brands that are build on consumers mind or the audience mind to become desirable to the target market. Some analysts projected that Motorola had strong earning growth as world wide demand for cellular products and hot new products that had become a savvy marketer to fight back effectively their competition.