Motorola, Inc. Case Study

“Motorola, Inc.”

Troy Gibson

Bus 499

Week 6 Assignment #3

August 3, 2011

Some of the salient opportunities that exist in Motorola’s external environment are its product offerings, such as its new technology for products like home and network mobility, enterprise mobility solutions, and mobile device mobility segments, which entered the market in 2007. With these new opportunities that existed in Motorola’s external environment it helped increase Motorola’s profit shares. Another salient opportunity that existed in Motorola’s external environment may be its ability to strategize its efforts to return the firm to a high level of profitability by spinning off the Mobile Device segment as an independent company just as it done with Free Scale.

The down side or threat that exist in Motorola’s external environment are its competitors, customers, and suppliers. As for Motorola’s competitors, companies such as Nokia, Samsung Electronics, Sony, LG Electronics, Apple Inc., and Research in Motion, just to name a few are all competitors of Motorola, in which they offer similar products and service of that of Motorola. However with these companies that is competing with Motorola, not only are they are offering similar products and services, they are companies that have a well established name, as well as selling their products and services at the same price, or less than Motorola’s products and services.

As for Motorola’s customers, they include Sprint Nextel, Verizon, China Mobile, AT & T, and America Movil. The threat that may impact Motorola’s external environment in this area, is that Motorola stated that if their were too loss one or more of these customers it may have a material adverse effect on the company, when this impacts the company, its customers may defer purchases, or be unable to obtain financing, and submit more request for vendor financing by Motorola. The last threat that may exist in Motorola’s external environment is its suppliers. In this case Motorola’s only has one supplier for its products. When a company does not have another source to supply them with materials, the companies can loss profits due to not having enough or another supplier of materials. As stated in the case, in 2003 and 2004 Motorola suffered from major delays because they did not have a sufficient number of suppliers. Also, because of financial crisis that has hit the economy, Motorola is very concerned that its suppliers may become capacity constrained due to credit issues which in it can lead to product delays.

I think one of Motorola’s prominent strengths lies within their strategy to enhance the company by having a skilled management team that