CASE17_Motorola - Motorola, Inc. INTRODUCTION A convergence...

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Motorola, Inc. INTRODUCTION A convergence of existing economic, technological, competitive, and leadership conditions has led to a strategic crisis at Motorola. The company is under pressure from its shareholders to address immediate performance issues and restore profitability. A full situation analysis can provide a comprehensive look at relevant environmental factors and enable Motorola's leaders to devise a suitable strategic plan. 1. What salient opportunities and threats exist in Motorola's external environment? 2. What are the company's most prominent strengths and weaknesses? 3. What are the advantages and disadvantages associated with each of Motorola's strategic options? 4. How can the corporation's strategy and organizational structure be designed to solve the company's strategic issues? 5. How should Motorola proceed? SWOT ANALYSIS External Environment Rapid technology diffusion and a quickly-evolving global economy are two major driving forces in Motorola's competitive landscape. Hypercompetitive, the market is inherently unstable as the pace of change relentlessly increases. The mobile communications industry is in a state of perpetual innovation, with new technologies consistently replacing older ones. Disruptive technologies create new market opportunities by destroying the value of existing technologies. But with widespread and rapid diffusion of new technologies, product life cycles are shorter (threatening adequate return on investments), and products become indistinguishable from those made by competitors. The grid below identifies threats in the general and industry environments and opportunities for Motorola to improve performance in the hypercompetitive market just described. OPPORTUNITIES THREATS Reduce costs to restore profitability Spin-off Mobile Device segment Align product development with consumer demand Weak economic environment - global financial crisis - tight credit conditions Competitors taking global market share from Mobile Device segment (*See more detail below) Motorola - 1
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Motorola, Inc. cont. OPPORTUNITIES THREATS Manage product upgrade cycle Narrow geographic focus to profitable regions (reduce emphasis on Europe) Develop and promote WiMax technology as next generation of wireless technology to support high- speed data transmission Narrow support of operating systems to those with strategic value Strengthen partnership with Google to expand opportunities for social networking through Android platform Loss of large customers (** See detail on page 4) - 5 major companies represent: - 42% of Mobile Device sales - 43% of Home & Networks Mobility sales - 19% of Enterprise Mobility Solutions sales Customer need for vendor financing Component product availability - constraints and failures of single component suppliers Risks associated with cost reductions Uncertainties in technological investments, market trends, economic recovery The following table portrays a more detailed study of competitive threats posed
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This note was uploaded on 10/21/2011 for the course ACCOUNTING 101 taught by Professor Fenjimo during the Spring '11 term at College of Southern Idaho.

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CASE17_Motorola - Motorola, Inc. INTRODUCTION A convergence...

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