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Motorola downfall and revival


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Motorola downfall and revival

  1. 1. Motorola Downfall and Revival Presented by: Muhammad Umar khan Presented to: business media
  2. 2. Introduction • Founded by two brothers Paul V. Galvin and Joseph E. Galvin. • Company name was Galvin Manufacturers. • In 1963, became Motorola • Manufactured the World’s first cellphone • In 2004, Motorola got National Medal of Technology • In 2011, separated as: – Motorola Solutions – Motorola Mobility • On August 15, 2011 Motorola Mobility was acquired by Google. • On January 29, 2014 Lenovo acquired Motorola Mobility
  3. 3. Vision Statement • "Our history is rich. Our future is dynamic. We are Motorola and the spirit of invention is what drives us."
  4. 4. Mission Statement "We are a global communications leader powered by a passion to invent and an unceasing commitment to advance the way the world connects. Our communication solutions allow people, businesses and governments to be more connected and more mobile."
  5. 5. Timeline History • 1928 Founding of Company with Battery Eliminator • 1930 First Motorola Brand Car Radio • 1939 First Motorola Two-Way Radio • 1940 Handie-Talkie SCR536 Radio • 1946 Car Radiotelephone • 1947 Motorola's First TV • 1955 World’s First Commercial High-Power Transistor • 1956 Motorola's First Pager • 1957 First Pay TV System
  6. 6. Timeline History cntd. • 1960 Astronaut TV • 1969: First Words From the Moon • 1973: World's First Portable Cellular Demonstration • 1974: Motorola MC6800 Microprocessor • 1977: First Digital Encryption Technology for Two-Way Radio Networks • 1983: World's First Commercial Portable Cellular Phone • 1995: World's First Two-Way Pager • 2010: ES400 Global Enterprise Digital Assistant
  7. 7. Reasons why Motorola Failed • Nokia takes the lead • Motorola missed the movement to 3G. • Products were not user friendly • Motorola should have moved into content. • Motorola stopped innovating. • Motorola didn't execute. • Motorola didn't grow. • No proper leadership. • Motorola never had the sense of urgency. • Lack of market knowledge
  8. 8. SWOT Analysis Comparison Strength 2007 Strength 2014 Strong brand name in telecommunication industry. Reacting to the situations and challenges very quickly. Considered as a leader of innovation. Launching innovative designs and novel technology. Wide range of product and their success. Strong competitor due to strong acquisition and mergers. Customer’s base all around the world. Products at affordable price for all.
  9. 9. SWOT Analysis Comparison cntd. Weakness 2007 Weakness 2014 •Products are not user friendly. • Out dated management style. •Supply chain management was not impressive. • Quality of the product is not upto the mark. •Faults are found in products. • Poor customer services offered. •Decline in sales. •Low employee training. •Brand awareness
  10. 10. SWOT Analysis Comparison cntd. Opportunities 2007 Opportunities 2014 Broader its range to capture market share. Increase the deals by new ventures and business partners. Introduce new brands in markets. Introducing new product categories in markets. Increase brand awareness through marketing. Take risk willingly in product innovations.
  11. 11. SWOT Analysis Comparison cntd. Threats 2007 Threats 2014 Competitors are more dominant. High quality products are offered at low prices by well known brands. Promotional activities of competitors are stronger. To build the trust of the customer again is bit difficult Customer perception is not good due to some faulty products.
  12. 12. Acquisition by Google • On August 15, 2011 Motorola Mobility was acquired by Google for $12.5 billion. • Benefits of the deal: – Accelerate Innovation – Better phones at low prices – Adopt android ecosystem
  13. 13. Market Shares of Motorola • Global market share held by Motorola in the mobile device market from 1st quarter 2008 to 4th quarter 2012
  14. 14. Lenovo acquire Motorola Mobility • On January 29, 2014 Lenovo plans to acquire the Motorola Mobility at US$2.91 billion. • Benefits of the deal: – To strengthen Lenovo’s position – To get benefit of android technology
  15. 15. Motorola again in Market Lenovo has decided to go for android phones by going through the following survey.
  16. 16. Q1, 2014 Market Share
  17. 17. Moto G hits the Market • Moto G hit the market • Attracted low paid people • Android phone in a cheap price • Causes drastic increase in market shares • Other Products: – Moto X – Moto Droid
  18. 18. Earnings in billions
  19. 19. Q2, 2014 Market Shares
  20. 20. Strategies Motorola currently adopt • Focus on the Customer’s Need • Adopting the new technology • Increased Market knowledge • Empowered the leadership • Well defined vision • Relevant Knowledge of the Business Market • Detailed Business Plan • Customer Relation Management • Proper Training of the Employees