Motorola Swot

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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...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.