Case Study Analysis: Motorola, Inc. Upon analysis of the Motorola Corporation, many opportunities have been identified in the external environment to both boost Motorola back into elite status in terms of the phone industry and further extend its long history of technology advancement and innovation. WiMax and the potential market surrounding it present the most promising business venture for Motorola. Heavy investments have been injected into WiMax , which has enabled Motorola to have the technology readily available for vendors to roll out.
With the exponential growth and need for high speed communication, especially in rural or undeveloped areas, this venture holds the potential to for a dynamic impact on the technology world. This would play a key role for industries which outsource to other countries for cheaper labor in providing the necessary communication capacity needed for efficient business operations. In the American market alone, given the federal push to provide high-speed communication to out of reach environments, the potential for success is very high.
With the respective partnership with Sprint-Nextel communications and Verizon TV, it can be a major player in the market by rolling out the technology on a broad scale using the existing market base. The rapidly growing cell phone market, specifically in the Asian market, holds another strong opportunity to re-penetrate the market and once again become the leading player. The exponential growth of users opens avenues to meet different consumer need, creating niche markets with the potential to secure a large sector of the market.
Improved television and sound is yet another opportunity Motorola can capitalize on. Quality transmission of digital information is one of the heaviest researched sectors in today’s market. New improvements are constantly being sought and developed to keep a competitive edge in the highly competitive industry. Some of the same opportunities pose threats if not carefully executed. Because of the rapidly changing technology environment, Motorola can be left in the shuffle by not being a front runner, essentially resulting in being viewed as a lackluster company that “once was. In the same sense, Motorola can possibly make faulty investments based off projected market favor, only to have the technology become obsolete given the rapid turnover rate of new technology. Regarding high speed data communication, the cost of technology and implementation may not prove beneficial if the areas invested in do not pick up on the technology. It becomes a gamble when new options enter the market competing against various technologies. The loyal customer base of Apple is one of the single most threats that affect Motorola.
Apple’s market share has steadily increased since the introduction of the iPhone, which counters the possibility of gaining significant momentum in the mobile communications sector. Apple has also ventured beyond computing and is currently exploring HDTV, internet, data storage, to name a few, which further adds to the threat level Apple poses. One of the most prudent strengths of the Motorola is the brand itself. Motorola has a history of innovation, competitive market presence, and resourceful business ties.
The introduced what without debate one of the most popular phones of the last decade, and arguably of all time. The name has become synonymous with technology across the board. The name still holds its weight, which in turn keeps the possibility of market dominance alive. Motorola’s two-way communications technology is highly recognized and used across many industries. It has by far become the industry standard with the advanced technology, which has been incorporated into Sprint-Nextel.
The strength of the company lies in its ability to create marketable products that appeal to consumers across a broad spectrum. It has being a considerable major player in the technology based sector since the technology boom began. Additionally, Motorola possess a gift for is strategically acquiring partnerships. This keeps Motorola in the front line of technology, even if it is not a direct venture by the company. Motorola’s promotional techniques have also proven to be one of their strongest attributes.
The have successfully pushed multiple products into the spotlight and have secured significant market share as a result. Motorola’s weakness is its pace of technology introduction. They have slipped from being the “first” to simply being a “worthy competitor” down the line. With the RAZR, Motorola was the first to bring a slim, stylish mobile communicator with an early version of web browsing. Now, the company is taking existing technology and is using it to gain market share. The lack of recognition for uniqueness is one weakness that has kept them from there once held throne.
The incorporation of the new technology smart phone and the existing two-way communications capabilities can lure buyers, specifically the corporate market, who wants the best of both. One advantage of Motorola’s strategic options is that a competitive edge can be gained by focusing on customer need. Refocusing on the customer would put Motorola in the position to directly address the needs of their customers, which in turn establishes loyalty and a “culture” with the customers. Another advantage is seeing and addressing the need for high speed data communications.
The WiMax provides a viable solution, without adding the expense and time involved in installing hard lines across a vast area to meet the needs of few. Limiting the number of operating systems also helps the company, by preventing oversaturation of the brand, and having lackluster software on the devices causing brand damage. The disadvantages of the strategic options are loss of potential market because of limited operating system dealings and possible overinvestment in a product that may not take to the mass or may become obsolete by introduction of an improved product.
The corporation’s strategy and organizational structure should be designed to incorporate innovation and customer needs in a sense of where it’s going or where it can be taken to as opposed to where it exist. It should be designed to take the company’s proven technology, incorporated with new technology, to create products that are stand-a-part from the current market. The company should have “heads” of the sort for each operational branch of the company. This design would allow Motorola to better isolate the successful and underachieving sectors in order to eliminate non-productive parts of the business.