Motorola Global Strategy

Group 1

Citra Dewi Wulansari

Fortuna Febi Fajri

Rhezaldy Pranayana

Kharizma Ulan Pebriyanti

Motorola Profile

Motorola started in Chicago, Illinois as Galvin Manufacturing Corporation in 1928 with its first product being a battery eliminator.

Founded by Paul Galvin and Joseph Galvin with the name Motorola when the company started manufacturing car radios in 1930

Products are classified into three major categories:

software-enhanced wireless telephone, two-way radio, messaging and satellite communications products and systems, as well as networking and Internet-access products for consumers, network operators, and commercial, government and industrial customers;

embedded semiconductor solutions for customers in the consumer, networking and computing, transportation, and wireless communications markets;

electronic systems for automotive communications, imaging, manufacturing systems, computer and consumer markets.

Problem Identification

Motorola has taken on the Japanese head-to-head

They cannot compete with Japanese product. They come to the market with low-priced, high-quality telephones and pagers.

Motorola market share reduce and impact on sales for several years

They came again with two-part strategy: First learn from the Japanese and then compete with them.

they set a number of broad-based goals that essentially committed the firm to lowering costs, improving quality, and regaining lost market share.

.

Question ?

What are the component of Motorola’s international strategy?

How Motorola find current strategy as a result of a SWOT analysis?

Discuss Motorola’s primary business strategy ?

Motorola International Strategy

Goal to achieved

Improving Quality

Increasing Motorola productivity by 20%

Regaining lost market share

Motorola International Strategy

Observation

Noticed the P200 flag in Hitachi plant north Tokyo

Motorola realized that Japan are faster in product manufacturing

And Japanese products were more easier & faster to enter the market

Motorola International Strategy

Six Sigma

Motorola tried to implement the DMAIC (Define, Measure, Analyze, Improve, Control) which is a program to save time, improve quality and lower a cost to be more efficiency on cost production

Motorola set the market target they want to penetrate and do some market research in several areas

Improve product and services quality 10 times on 1992

Six Sigma translates into a defect rate of 3.4 parts per million for a product or service, which is virtual perfection

These new processes and changes cover the entire cycle from order entry to delivery of product

Motorola International Strategy

Cost Leadership

Define & Measure of Efficiency Program Motorola made some restructuring process by losing its

semiconductor manufacturing plant and took out $3.5 billion from asset

Removed some of the project that is being made

Downsizing and select only the best of employee to remain in Motorola

Analyze Research & Development Joint venture facility with Toshiba Corp, began volume production

of 1-megabit DRAMs and microprocessors.

Signed an agreement with AT&T giving us early access to UNIX® System V Release 4.0 and later releases

Motorola International Strategy

Product Improvement

1974 : Motorola introduced its first microprocessor, the 8-bit MC6800

1980 : Motorola’s next generation 32-bit microprocessor, the MC68000

1983 : the U.S. Federal Communications Commission (FCC) approved the DynaTAC 8000X telephone, the world's first commercial cellular device

1991 : Motorola demonstrated the world's first working-prototype digital cellular system and phones using GSM standard in Hanover, Germany

1995 : Motorola introduced the world's first two-way pager which allowed users to receive text messages and e-mail and reply with a standard response.

Motorola International Strategy

Opening the new factory

Motorola open several factories in several region (Japan, Europe, and U.S) for Global Expansion and to improve the efficiency of their product quality

Controlling Motorola tried to change the thinking of all employees to be more efficiency

and to improve all of coworkers skill through education and training.

Motorola also control all departments (i.e; design, manufacturing, sales, and service) to make sure that all the six sigma program Motorola tried to implement to boost quality assurance of product can work in the right way.

Product Improvement

Motorola International Strategy

Right after Six Sigma program implemented, in 1995 Motorola revenue increase significantly and make a record for achieved $22.25 billions and generate 56% of its revenue abroad.

Motorola International Strategy

198485 86 87 88 89199091 92 93 94 95 96 97 98 992000

5.547 5.98.25

10.7 13.30316.963

22.25

27.79 29.430.93

37.58

Motorola U.S Market

Revenue

Result

Result

Achieved Product quality

Six Sigma that Motorola tried to implemented, in 1988 Motorola received the prestigious Malcom Baldrige National Quality award.

Market Share Motorola in Japan had lead the market with telecommunication, microprocessor, etc.

Gain number three in market share in pagers and cellular telephones.

Gain number two in semiconductor sales.

Motorola International Strategy

Motorola’s SWOT Analysis

Strength

Motorola is one of the world's leading providers of wireless communications, semiconductors and advanced electronic systems, components and services

Motorola is an Inventor on it’s technology Motorola conducts business on six continents and

employs more than 139,000 people worldwide Motorola is strongly committed to delivering

customer satisfaction, continuous improvement, and setting new standards of quality

Weakness

Motorola maintained old strategies in doing business

Motorola was complacent in its leadership position in the U.S. market, and failed to aggressively compete with the emerging Japanese firms

Opportunities

Motorola can compete and expand globally.

Information and communications technology is fast-paced, with new discoveries happening every minute. Motorola can match this speed of discovery with new and innovative product and technology development

Threats Japanese electronics firms are heavy competitors in terms of

cost and quality leadership.

Barriers to Entry, Supplier Power, Threats of Substitutes, Degree of Rivalry, and Buyer Power

Motorola Primary Business Strategy

Motorola Competing in Quality

1. The most influenced strategy that impact Motorola development is to compete in quality. Motorola trained their employee in a wide range of quality enhancement. The result has shown that Motorola had been awarded by Malcolm Baldrige National Quality Award

2. Motorola invented the Six Sigma quality improvement process. This became a global standard.

Motorola Primary Business Strategy

Motorola Leader in Technology

1. 1991 : Motorola demonstrated the world's first working-prototype digital cellular system and phones using GSM standard in Hanover, Germany.

2. 1994 : Motorola introduced the world's first commercial digital radio system that combined paging, data and cellular communications and voice dispatch in a single radio network and handset.

3. 1995 : Motorola introduced the world's first two-way pager which allowed users to receive text messages and e-mail and reply with a standard response.

4. 2000 : Motorola and Cisco supplied the world's first commercial GPRS cellular network to BT Cellnet in the United Kingdom. The world's first GPRS cell phone was also developed by Motorola.

5. 2002 : Motorola introduced the world's first wireless cable modem gateway which combined a high-speed cable modem router with an ethernet switch and wireless home gateway.

6. 2003 : Motorola introduced the world's first handset to combine a Linux operating system and Java technology with "full PDA functionality".