Motorola Customer Value Creation

Case Study

Motorola Customer Value Creation

1. Introduction

Motorola was a successful communication equipment manufacturer and seller in past several decades. The department of mobility in Motorola was the pioneer of mobile phones industry, it made Motorola became the top cellular phone company in the world until the late of 20th century. Then it was overtaken by another successful cell phone company Nokia. The market share of Motorola began to decrease following development of electricity and increasing of new cell phone company like Apple Inc. In case of segment of different marketing, Motorola Inc. separated for two companies Motorola Mobility and Motorola Solution in Jan 4 2011. Then Motorola Mobility Inc. was acquired by Google.

Motorola did a great value creation in past years. This case study will discuss how Motorola created Customer value in 4 aspects include production, price, place, promotion.

2. Product

Product is the first element in customer value creation. A mobile phone can perform several functions include communication, fashion statement, centre of entertainment, assistant of your life. The mobile phone market is a competitive market, a range of mobile phone companies provide mobile phone service to compete in the market. Motorola has associates some entertainment suppliers such like MTV, with high quality sites providing different kind of entertainment. 3G phones could present much more effective way to connect to entertainment centre for music and video downloads, because the 3G network could provide faster connections for downloading from websites than previous generations of phones. In term of basic functions such like text, video messaging, Motorola promoted them with adding new elements like face-to-face contact.

Motorola tried hard to promote their products, for example, in 2006, Motorola released the thinnest mobile phone the Motorola RAZR V3i just 13.9mm thin. The case was made from aircraft grade alloy, and the screen from glass. It provided a camera with 4X zoom and quick control. It also offered you watch and record video in full colour. Motorola RAZR V3i significantly improved Motorola's marketing in 2007.

Overall, in order to create an excellent product, Motorola concentrated on striking design, high call quality, ease of use, more entertain functions, reliable quality. All these aspects provide excellent products and made Motorola win the competition with other mobile phone companies.

3. Price

Price is the key aspect for customer value, because when customers purchasing items, price is the one of most important element they concern about. Therefore, to make a right price decision in target market is very important for Motorola to build relationship with customers.