Three amigos mini case studies case motorola vs. wi-fi

1. Three Amigos Mini-Case studies
Case: Motorola vs. Wi-Fi
Background: Before Wi-Fi (only 15/20 years ago) computers
need cumbersome wiring to networking
equipment to be connected to the internet. Wireless connectivity
gave us freedom to use of our laptops
anywhere. Employees could move around the office space
without any restrictions arising from cables.
Wireless network allows access to all applications and
documents on your network from anywhere
inside the building within the range of the wireless network
signal. With the reduction in size, the use of
Wi-Fi in tablets and smart phones added a new dimension to
mobility. From the coffee shop of our
neighborhoods to our international travels we were able to
connect without the often-outrageous
carrier costs as long a public hot spot available. Suddenly,
public spaces to remain competitive had to
offer Wi-Fi access, otherwise they were at a disadvantage.
Without any sort of Machiavellian planning a
major disruption to the cellular service providers (wireless
carriers) was under way “democratizing the
access” to the internet.
Situation: Motorola up to that time was the undisputed global
leader of wireless communication.
Emerging from the walkie-talkie equipment developed during
the second world war (WWII), Motorola
was the provider of choice of wireless telecommunication
solutions to first responders, police, military

2. defense communications and civilian logistical/plant operations.
All in all, Motorola was the provider of
choice for wireless B-2-B communication solutions. All these
equipment’s used licensed bands of the
spectrum and operated without interference as it was of
exclusive use for that specific application/
customer base. For the most part Motorola customers prioritize
product quality and service over price.
The opportunity: Wi-Fi was revolutionary, as it did not use
licensed bandwidth, but rather operated in
an unlicensed band open to the public enabling the operation of
wireless toys, home appliances,
including microwave ovens. This was perceived as not a serious
wireless communication arena, as most
of the products operating in this frequency band, were perceived
a “cheap toys” of poor quality and
unreliable communications.
The real opportunity for Motorola was to become the leader of
wireless data communications, in the
same fashion that it was already the leader in voice
communications. However, while those two modes
of communications (voice and data) have been treated
separately, historically, they were coming
together as new studies from MIT and others were promoting
the benefits of VOIP (Voice over the
Internet Protocol). This development would treat the voice as
another data type, enabling a single type
of communication network to serve all the needs of the user:
voice, data and eventually video.
The Product Concept: Imagine in the year 2000-01 a wireless
phone with just Wi-Fi and WhatsApp.
Imagine the opportunity to enter emerging markets with a low-
cost phone enabled by Wi-Fi and VOIP

3. technologies, providing to global consumers voice and text
services for a very low-cost monthly
service. At that time Motorola was the undisputable leader for
cellular telephony. Nokia presented
some challenges as they use colors and ring tones to please the
younger consumer. But Motorola was
dominant at the high-end products for executives (and their
families) and any “serious – professional --
consumers” of wireless communications. To put things in
perspective a cell phone around year 2000
cost several hundred dollars and a typical the monthly bill of
for voice services started around $100 as
the air cost was around 30 cents per minute (additional per
minute charges were incurred if you were
roaming domestically or even higher internationally) and each
txt message was limited to 140 characters
(approx.) and around 10 cents each.
The Opportunity: with the benefit of hindsight this opportunity
was too big to pass. It seems that
Motorola to protect its leadership in the wireless sector, would
have to consider to:
1. Allocate R&D funds to participate and lead the efforts in Wi -
Fi/VOIP product development,
2. Make a new type of Wi-Fi/VOIP phones that were
incompatible with the current cell phones
networks,
3. Develop a network of alternative carriers that were
completely different from the current
carriers (ATT, Verizon, Vodafone, Orange, T Mobile, etc.)

4. Motorola’s main customers. Instead,
the new carriers would be completely democratized as coffee
shops, gas stations, stores, hotel
lobbies, restaurants, etc. become the wireless service providers.
4. Continue developing the current business while developing
the new Wi-Fi/VOIP technology with
very different stakeholders.
5. Design a breakthrough product and services.
Recommendations: Identify what is your strategic position and
your advice of what to do?
The leadership transition in any company is bumpy, even more
traumatic when the transition involves
from the son (Bob) of the founder (Paul Galvin) to his grandson
(Chris). The company has reached the
$1B mark under Paul leadership, and Bob through a stream of
technical and marketing success brought
it to $30B/year revenues. Chris was under pressure to leave his
distinctive mark as his predecesors.
The core tenants of Motorola wireless communications
dominance were based on:
-2-B model,
ment and services,
-
and-feel, colors, marketing
messages, etc.
Motorola had enough challenges in the current technology as
the cellular telecommunications market

5. was evolving into a consumer market. Global competitors were
popping up everywhere and creating
price (and margin) pressures. Motorola needed to decide
whether to ignore these new technological
trends or start funding a complete parallel development of a
new set of products and services using an
alternative set of technologies which would democratize
completely the service provides and potentially
completely disrupt the industry (and its main customers)?
Would they be willing to antagonize with the
current carriers at a time that other emerging providers are
becoming available? Is Motorola leadership
able to take the risk as Chris is trying to establish himself?
Primary questions to address in your report:
1. Was Motorola successful? In your opinion rank in order of
importance the top 3 reasons it
missed completely the Wi-Fi Revolution.
2. If you would have been a trusted “consigliere” what would
have been your recommendations
to Chris?
3. What do you think it was the most difficult challenge to
overcome in capturing this new
emerging opportunity?
i. Developing the new technologies Wi-Fi/VOIP and the
required funding,
ii. Develop a new market with new players (up to that point a
coffee shops were
not telecommunications providers)?

6. iii. Developing a new set of stakeholders while keeping active
and engaged with
the old ones,
iv. The internal executive mindset based on optimizing well
known technologies
with well understood markets and their dynamics?
v. Others?
4. How challenging is it for a B2B company to shift to B2C?
Does it require more agility than if
they remained a B2B company? Which parts of the Business
Model might be the most
challenging? pursue a new product based on new technologies,
or establishing itself in a new
market (low-income consumer: younger/poorer)?
Appendix: A brief Synopsis about Wi-Fi Technology
The current ubiquity of Wi-Fi (abbreviation of Wireless
Fidelity) is so great that it is hard to imagine how
we used to function without it. The freedoms offered by
wireless technology have transformed every
aspect of our working lives. In some ways it feels like Wi -Fi
has been around forever, but many of its
most important moments have happened in just the last two
decades. Though Wi-Fi’s earliest stirrings
began a generation ago, the power, speed, and range we enjoy
today are the result of the constant
improvements of this technology which achieved not only
performance improvements but cost

7. reductions as well. As of 2019, over 3.05 billion Wi -Fi enabled
devices are shipped globally each year.
Devices that can use Wi-Fi technologies include personal
computer desktops and laptops, smartphones
and tablets, smart TVs, printers, smart speakers, cars, and
drones, among many others. Wi-Fi continues
to mold the ways we work, learn, play, and interpret the world
around us.
Wi-Fi is a family of wireless network protocols, based on the
IEEE1 802.11 family of standards, using
electromagnetic waves to communicate, operating in the bands
2.4 gigahertz (GHz), and 5.8 GHz for
unlicensed use by anyone. The first version of the 802.11
protocol was released in 1997 and provided up
to 2 Mbit/s link speeds. This was updated in 1999 with 802.11b
to permit 11 Mbit/s link speeds, and this
proved to be popular. With the introduction of the 5.8 GHz band
enabled a maximum net data rate of 54
Mbit/s, plus error correction code, which yields realistic net
achievable throughput in the mid-20 Mbit/s.
More recently 802.11n is an amendment that improves upon the
previous 802.11 standards by adding
multiple-input multiple-output antennas (MIMO). 802.11n
operates on both the 2.4 GHz and the 5 GHz
bands. It operates at a maximum net data rate from 54 Mbit/s to
600 Mbit/s and providing a range of 30
feet indoors to over 300 feet outdoor depending on the physical
obstructions in between. Equipment
manufacturers rushed to introduce wireless networks and
devices to take advantage of the continuous
standard improvements, enabling today’s computers of all
shapes and forms and all their peripherals
and many other entertainment devices (TV’s and game consoles)
to enjoy a high-speed (a.k.a.

8. Broadband) connections to the internet.
While the success of this technology is evident today this
technology has over 2 decades in the making,
In 1999 the implementation of a single chip Wi-Fi
communication chip, became a key signal that if
volume increase (depending of mass adoption) the possibility of
a $1 Wi-Fi device could become reality.
The Wi-Fi chip would be key to enable internet connectivity of
all sorts of computing devices and
peripherals in this very cost-sensitive consumer electronics.
Connected products could start trickling into
the market 12 to 24 months down the line.
From the very first trickles of data to the rapids of Big Data we
are surfing today, Wi-Fi has been a
powerful force in the free flow of information around the world.
The IEEE 802.11 Working Group is still
going strong, continually uncovering better, faster, more
reliable and more inspiring ways to bring us
Wi-Fi and fully inter-operable anywhere in the world as enabled
by a global standard by the IEEE a highly
respected organization.
1 Institute of Electrical & Electronic Engineers (IEEE) is a
global standard organizations