Motorola Downfall and Revival

Presented by: Muhammad Umar khanPresented to: business media

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

Vision Statement

• "Our history is rich. Our future is dynamic. We are Motorola and the spirit of invention is

what drives us."

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."

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

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

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

SWOT Analysis ComparisonStrength 2007 Strength 2014Strong 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.

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

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.

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.

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

Market Shares of Motorola• Global market share held by Motorola in the mobile device

market from 1st quarter 2008 to 4th quarter 2012

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

Motorola again in MarketLenovo has decided to go for android phones by

going through the following survey.

Q1, 2014 Market Share

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

Earnings in billions

Q2, 2014 Market Shares

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