business media

1. Motorola Downfall and Revival
Presented by:
Muhammad Umar khan
Presented to:
business media

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. Vision Statement
• "Our history is rich. Our future is dynamic.
We are Motorola and the spirit of invention is
what drives us."

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. 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. 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. 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. 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. 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. 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. 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. 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. Market Shares of Motorola
• Global market share held by Motorola in the mobile
device market from 1st quarter 2008 to 4th quarter 2012

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. Motorola again in Market
Lenovo has decided to go for android phones by
going through the following survey.

16. Q1, 2014 Market Share

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. Earnings in billions

19. Q2, 2014 Market Shares

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