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Motorola marketing strategy by studybuy
Motorola marketing strategy
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Motorola Inc.
Company overview:
Motorola is a leading provider of wireless communication devices, Enterprise mobility solutions and end-to-end broadband systems for homes. The Fortune 100 Company is based in Schaumburg, Illinois.
Apart from being known for their innovation and R&D facilities their robust manufacturing capabilities have made a mark in the world’s tech arena.
It has a strong global presence with centers in over 70 countries and is named as one of America’s Most Admired Companies by the fortune magazine.
The major chunk of its business is the mobile services segment, raking in over 52% of its net sales. Although USA is its largest market about 65% of the segment’s sales are outside the US.
Its endless list of customers includes the big names in the Telecommunication industry such as Verizon, Sprint-nextel, Tmobile, China mobile, and Comcast. The company has reported sales of $36.6 billion for 2007, a drop of about 15% from its 2006 sales, largely due to its loss in the mobile devices segment. They are even looking at the developing WiMax market which could be a huge cash generator for them in the future.
Currently the company is exploring ways to accelerate its mobile devices business and bring it back on track as a profitable entity, they are even considering selling the entire division, the final decision is yet to be made.
SWOT analysis:
Strengths
-Big Brand.
-One of the best R&D facilities.
-Solid manufacturing.
-Variety of products to keep them in the game.
-Excellent marketing.
-Six Sigma.
Weakness
-Declining monetary resources due to non profitability.
-Products lack the slick and fashionable appeal.
-Too much reliance on their phone Moto Razr.
-Products lack user centered design.
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... middle of paper ...
...ts. Since they both target the same number of people Samsung, with its thin, sleek swanky phones poses a great threat to Motorola at the global level. Rivals LG are not far behind. LG Chief Executive Nam Yong recently stated that they too would try to exploit Motorola’s current low phase to sharply increase their market share.
With better styles and easier user interfaces, these companies are on a prowl to steal another piece of the market.
Competition from WCDMA as an alternative for WiMax:
Currently WCDMA is more widely deployed for data communication and Motorola is not very active in this area, however, they are the market leaders in WiMax which is still under development.
If WiMAX succeeds, Motorola will be right on top but if WCDMA succeeds, Motorola will be at a serious disadvantage as its market share in WCDMA is quite small compared to its competitors.
Verizon Wireless is a joint venture between Verizon Communications out of New Jersey and the European-owned telecommunications company "Vodafone." Verizon Wireless is a wireless communication carrier that operates in the continental United States. Currently, Verizon Wireless provides wireless communication services to over 60 million customers nationwide including customers in Hawaii and Alaska. Its products include wireless voice and data services using the largest wireless voice and data network in the United States. Cingular Wireless is currently the leading cellular carrier when it comes to amount of customers on its wireless network. However, as Verizon Wireless continues to grow its market share as the United States' second largest wireless carrier, it ranks number one in total revenue collected as well as how it is viewed by Wall Street. Verizon Wireless' strong market position, perception of quality, and its proportion of income has a strong competitive advantage that would allow a small price increase--making the demand inelastic, "quality demand stretches very little in response to price change" (McConnell et. al, 2004).
Annual data was gathered on the United States' Gross Domestic Product and the economic indicators of unemployment, employment growth, inflation, and interest rates. Using 2004 as the base year, forecasts for the next two years were taken from three different forecasting organizations and compared to historical figures. Differences in projected data were addressed as well as relationships between forecasts and among the targeted indicators. The results of the economic forecasts were applied to current Motorola operations and plans. Whether or not Motorola's operations and plans are changed in response to the forecasted information, to avoid threats and take advantage of opportunities, are discussed.
They have a strong core transaction processing infrastructure for meeting operational needs of a company this size.
Upon the acquisition and merger of legacy AT&T Wireless by Cingular Wireless and the solidification of SBC, BellSouth and Cingular Wireless, the New AT&T mobility business unit now leads in the current market share narrowly over Verizon Wireless.
The company has a very good information systems support in being able to make strategic and routine decisions. They research and look into every available option prior to committing to purchasing or contracting with the companies in making sure that they are able to make the best quality product at the lowest costs.
areas in only the southeast and western parts of the United States. Its recent merge with AT&T
It is capable of capturing 13.8% of the market share. It is not a market leader, but with continuous development & effort has the potential to be a market leader.
The cellular-service industry in the United States has reached maturity with AT&T, Verizon, Sprint, and T-Mobile taking the largest share of the market. Each company has
During the fiscal year 2006, mobile devices generated 66.1% of Motorolaaê¡?s total revenues, followed by network and enterprise generating 26.2% of the total revenues, and connected home solutions generating 7.7% of total revenues. Motorolaaê¡?s revenues for the 2006 fiscal year were $42,879 million. The U.S. which is the companyaê¡?s largest market accounted fro 43.9% of the total revenues. Forces and Trends Trend: WiMax aê¡á" Nellie Stewart Description of trend: In the industry environment, Worldwide Interoperability for Microwave
Blackberry lost focus on its core business and consequently lost its position as the “Business phone” market leader. Its Market-Share of the smartphone shrank from>21% to below 1%.
In conclusion, current trends and significant events concerning T-Mobile were examined. A hard look was given to the economy, demographics, technology, political and legal issues, and social characteristics. T-Mobile is strong across the board, with surprising statistics backing up a variety of topics. The economy is strong, the demographics are not far-fetched, technology is improving, there’s no huge political or legal scandal, and T-Mobile is socially strong.
While profits from semiconductor sales are keeping stakeholders happy, Samsung is pursuing a differentiation strategy in the smartphone market. The managers are committing more resources to researching something they think will revolutionize phones. author name writes, “All smartphone makers face the issue of stagnancy in hardware innovation. Samsung is currently working on developing a smartphone with foldable displays…” (Tanner). There has not been a ground-breaking development in smart phones in the last few years, so the managers believe
When it comes to smart phone market share in the United States, Apple still trails Android by almost 10%. But if you are to break out the market share figures then you will notice that IPhone reigns supreme by a very wide margin. According to a lot of recent data compiled by ComScore, Phone’s share of the United States smartphone market now is about 43.6%, followed by Samsung which is at 27.6%. Apples market has increased by 4% almost every year, while Samsung has been dropping by 4% almost every year. Although Apple is doing a bit better than Samsung overall, Samsung is still topping Apple with their Android. During the second quarter of 2015 Samsung took a 21.7 percent of the global smartphone market, with shipments 73.2 million units. A reason I feel Samsung is doing much greater then apple right now is their ability to have all these different features, which not only add modern things to their phone but also longevity. With the three new water proof phones that Samsung has come out with Apple has yet to release their first
Thirdly, the company is committed to delivering superior quality of products and services. It earned a reputation of a convenient and reliable brand that offers the lowest prices, one of the fastest and lowest shipping, widest selection of goods, and many additional features with its services.
By the end of 2003, Nokia was the clear market leader in the mobile phone industry in terms of sales and profitability. It was ahead of giant companies like Motorola, Ericsson, Siemens, Samsung, and other worthy competitors. Since the early 1990s, Nokia's Strategic Intent was to build distinctive competency in product innovation, rapid response, and global brand management. Its strategic intent required rapid growth in the core businesses of mobile phones and telecommunications networks. This goal was achieved by Nokia's development of new products and expansion into new markets. In order to become the global leader as it is today, the company had overcome numerous challenges and obstacles over the last decade.