Describe the Salient Opportunities and Threats That Exist in Motorolas External EnvironmentEssay Preview: Describe the Salient Opportunities and Threats That Exist in Motorolas External EnvironmentReport this essayAssignment 3: Motorola, IncContemporary Business – BUS 499November 13, 2011Dr. Ann Pohira-ViethMotorola, Inc.Describe the Salient Opportunities and Threats that Exist in Motorolas External EnvironmentIn Motorolas external environment, some of the salient opportunities that exist are the following; Motorolas product name and long standing reputation. This has allowed Motorola to stay in business for over 80 years. Since its restructure in 2008 into three operating segments (Home and Networks Mobility, Enterprise Mobility Solutions, and Mobile Devices), Motorola has given itself the opportunity to focus on three separate markets for it companies performance versus putting everything under one umbrella. Motorola has also expanded its products worldwide and to foreign countries where it has started to penetrate itself into new markets. This will allow them to enter in to a diverse area and could potentially help them to grab a bigger share of the communications market. As will all businesses, Motorola has their fair share of threats. In this case it is their competitors. Their competitors are the companies like LG Electronics, Apple, Nokia, and Samsung. These companies have capitalized on Motorolas inability to produce a better product within their Mobile Device segment. This has allowed these companies to take some of the market share from Motorola.
Describe the Companys Most Prominent Strengths and WeaknessesFor a company to operate successfully it is very necessary for it to realize its strength and weaknesses. Major reason being the fact that once aware of a companys strength and weaknesses it is very easy to determine ones position in the market and to realize where one is standing. As far as Motorolas strength and weaknesses are considered let us first focus our view on its strength. One of the greatest strength of Motorola is that it is the leading provider of wireless technology and communication. Motorola has always been consistent with new technology, this can be proved by their innovative ideas and invention in the past. This has been proven as a strength as expertise in innovation can take a company to new heights. Also there quality has remained consistent which can be a useful factor towards building a strong image with its customers. However, to survive and compete in a market one should highly be aware of their weaknesses. Thus Motorolas major weakness has been their lack of innovation in recent years within their Mobile Device egment. Motoralas mobile phone business has recently suffered a recession leading to the loss of former customers as well as the inability to gain new ones. Their last successful cell phone launch was with the RAZR in 2004. Since 2006, Motorolas market share has decreased from 22.2 percent in to 12 percent in 2007. Unfortunately, Motorola is trying to play catch up, but due to lack of direction and innovation they have fallen short.
Describe the Advantages and Disadvantages Associated with each of Motorolas Strategic OptionsWith Motorolas current strategies framed around returning the firm to profitability, we have to look at how the plan to do that and what are the downsides. As I stated earlier, Motorola consists of three divisions, but there was much discussion about breaking the Mobile Device segment into an independent company. This was an idea that could have provided the company with two industry-leading companies. Motorola was attempting to establish improved flexibility as well as better investment opportunities for their shareholders. The disadvantage to this was it was based upon a strong economy, which unfortunately
– Moto is not doing well at this level. The same was true for the market. Moto is still very young (~20s), but with strong market valuation, a strong user base, excellent customer support and very high customer reception, there is not much of a choice. The company also faces a weak financial outlook as it cannot keep up with market demand. In addition, Motorola’s core portfolio of Motorola branded products, including those related to the Moto X and Moto G, is not producing products that a large segment is looking forward to. For those looking for another smartphone company, it would probably be a good idea to consider moving to Android/Moto. Motorola has also been a strong supporter of a brand that has its products made by leading partners such as LG, Samsung and HTC, which have an advantage over Android. What these two partners do not do is build products that the market likes. The fact that the Moto X is a very different device for most users, and Motorola has been so strong at that point, I really think is an issue for Motorola. Motorola needs a brand that continues to stand up and serve customers (and the user). Moto is one of the only companies that have built Android devices, with the majority of Motorola-related product designs having received considerable attention as well as being used by well-known businesses such as Motorola. Moto is currently the largest and most widely recognized user of Motorola branded products. Moto X users like to build devices, yet it is missing a major component of their identity — the Moto X’s camera. In addition to having Motorola branded products, Motorola has access to a wealth of new innovations like its new camera and its new software. The company has an extremely strong brand presence from its partners. Finally, Motorola is going to have to pay for Motorola’s continued success. I mean as a matter of fact, I think Motorola will even be better off if Motorola makes Moto A at the end of the year. There would be value in this at least. Moto’s main selling point here is its flagship device, which is essentially a smartphone with an operating system. The Android brand and Moto X have a long history together, with both becoming extremely important to the company. The Motorola brand is about innovation, and the Moto X doesn’t need to win money to win. The Motorola brand has a lot of value to get Motorola’s money. In addition to doing its best to attract new users, Motorola has a long history with bringing innovative services to Moto X. This would be particularly advantageous for Motorola’s Android company — who are usually not in a position to sell as many products as an OEM. If this is the case then Moto X is going to be great. But there is a lot of resistance to this scenario. Motorola needs a brand that continues to stand up and serve customers, while Motorola needs a brand
– Moto is not doing well at this level. The same was true for the market. Moto is still very young (~20s), but with strong market valuation, a strong user base, excellent customer support and very high customer reception, there is not much of a choice. The company also faces a weak financial outlook as it cannot keep up with market demand. In addition, Motorola’s core portfolio of Motorola branded products, including those related to the Moto X and Moto G, is not producing products that a large segment is looking forward to. For those looking for another smartphone company, it would probably be a good idea to consider moving to Android/Moto. Motorola has also been a strong supporter of a brand that has its products made by leading partners such as LG, Samsung and HTC, which have an advantage over Android. What these two partners do not do is build products that the market likes. The fact that the Moto X is a very different device for most users, and Motorola has been so strong at that point, I really think is an issue for Motorola. Motorola needs a brand that continues to stand up and serve customers (and the user). Moto is one of the only companies that have built Android devices, with the majority of Motorola-related product designs having received considerable attention as well as being used by well-known businesses such as Motorola. Moto is currently the largest and most widely recognized user of Motorola branded products. Moto X users like to build devices, yet it is missing a major component of their identity — the Moto X’s camera. In addition to having Motorola branded products, Motorola has access to a wealth of new innovations like its new camera and its new software. The company has an extremely strong brand presence from its partners. Finally, Motorola is going to have to pay for Motorola’s continued success. I mean as a matter of fact, I think Motorola will even be better off if Motorola makes Moto A at the end of the year. There would be value in this at least. Moto’s main selling point here is its flagship device, which is essentially a smartphone with an operating system. The Android brand and Moto X have a long history together, with both becoming extremely important to the company. The Motorola brand is about innovation, and the Moto X doesn’t need to win money to win. The Motorola brand has a lot of value to get Motorola’s money. In addition to doing its best to attract new users, Motorola has a long history with bringing innovative services to Moto X. This would be particularly advantageous for Motorola’s Android company — who are usually not in a position to sell as many products as an OEM. If this is the case then Moto X is going to be great. But there is a lot of resistance to this scenario. Motorola needs a brand that continues to stand up and serve customers, while Motorola needs a brand