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Motorola is a multinational telecommunication company that has experienced financial loss globally in the past few decades. It manufactures numerous telecommunication handsets, sells wireless network communication gadgets to numerous companies around the globe. In terms of innovation, Motorola Corporation is one of the best firms that use its distinctive brands to sell its products. This has partially been helpful to the company in generating some cash to increase its sales. This paper explores on the history, strategies, financial status, competitiveness and marketability.
History of Motorola Company
Since Motorola entered into the competitive electronic market, it has undergone through numerous hurdles and successes. In spite of stiff competitions and other market related issues, Motorola has remained successful as a leader in mobile communication technology, standing as the leading maker of cellular telephones, microchips that are used to operate devices other than computers, paging devices, and automotive semi-conductors. According to Motorola, Inc, (2012), it is stated that from 1928 when it was first established to 1950, Motorola had the innovation power that enabled them to produce quality products and services in the electronic market. While, it has lost few battles, it managed to take the Japanese competitors head to head. In 1980’s, Motorola controlled the emerging U.S. cellular phones and pagers, however, they were not aggressive in competing with the Japanese and the Japanese exploited the market by flooding it with low quality phones at low prices and this led to Motorola battling it out with the Japanese firms. In 2000, Motorola created numerous jobs in the U.S. economy despite of limited restructuring efforts brought about by the challenge of continuous technological advancements and the speed in which technology changes. Motorola was once known for its cutting-edge technology and level of quality, however, it is currently working on revamping its image to outdo their competitors in the electronic market by employing emerging strategies.
Currently, the Motorola company has a strategy that is marketing oriented, which involves making life better and its product smarter. Its stratagem is also aims at enhancing intelligence globally. Another constituent of the strategy involves the manufacturing of superior technology and brand equity and in so doing; it also strives to become influential in the change from analog to digital data delivery systems. Additionally, Motorola Company is currently working effortlessly to attract and retain excellent technicians, engineers, managerial staff and nontechnical staff through its venture in technology and academic capital as a strategy. It is also strategizing on becoming the best broadband communications in the next few years. It also focuses on reducing the “total cycle time” towards enhancing quality in its business through examination of the entire system, from design, manufacturing, and marketing/management. Motorola has ventured into a competitive strategy of using WiMaX technology and it also aims at using both intangible and tangible resources in execution of its goals (Motorola, Inc, 2012). All these strategies match its business model and thus practical.
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Erickson (2012), states that over the past decade, Motorola, Inc has encountered considerable financial loss. Though, they have made several tactical changes, they have not been able to restore the company to its previous fiscally unwavering operation. Currently Motorola Inc has net revenues of $ 3.4 billion; non-GAAP net earnings of $0.20 per share in fourth quarter 2010; Mobile Devices net revenues of $2.5 billion; Non-GAAP operating loss of $19 million; GAAP operating loss of $70 million; it shipped 10.5 million mobile devices, including 5.3 million smart phones; and home net revenues of $897 million (Erickson, 2012).
Competitiveness and Marketability
Regardless of whatever strategy Motorola Company incorporates, it must be able to return the firm to profitability. This is achievable through employing marketing structures that are competitive to beat its competitors in the market. Motorola’s external environment has a large impact on both its opportunities and threats. One threat that is impacting Motorola’s performance is new competitors based in different locations globally. Some of which include Nokia, Samsung, and Sony Ericsson and other Mobile Communications that have found locations, suppliers, and strategies that are appropriate. Competition comes in different forms, for instance, Japanese firms can make an exact duplicate of a Motorola product at a lower cost, yet higher quality and this has greatly affected Motorola since consumers are willing to pay less for a better quality product. Other companies such as LG Electronics, Apple, Inc., Research in Motion (RIM), and Helio, Inc pose a threat, yet not as large a threat as those mentioned previously. By focusing on reducing the “total cycle time” and through examination of the entire system, from design, manufacturing, and marketing/management, Motorola Inc will capably market its products successfully around the globe (Motorola, Inc, 2012).
The firm has numerous opportunities and strengths that can likely permit them to create strong market position globally. Through its numerous brands, strong marketing and promotional strategies, and engagement in technological advancements, will likely allow it to reduce costs of its products and increased customer satisfaction. In spite of the Japanese competitors, they have formed competitive strategies that have enabled them to remain competitive in the global markets (Motorola, Inc, 2012).
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