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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 Motorolas international


strategy?

How Motorola find current strategy as a result of a SWOT


analysis?

Discuss Motorolas primary business strategy ?

Motorola International 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 1megabit 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-bitMC6800

1980 : Motorolas next generation 32-bit microprocessor, theMC68000

1983 : the U.S.Federal Communications Commission(FCC) approved


theDynaTAC 8000Xtelephone, the world's first commercial cellular device

1991 : Motorola demonstrated the world's first working-prototype digital


cellular system and phones usingGSMstandard inHanover, Germany

1995 : Motorola introduced the world's first two-waypagerwhich allowed


users to receive text messages and e-mail and reply with a standard
response.

Motorola International Strategy


Product Improvement

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.

Motorola International Strategy


Result

Motorola U.S Market

27.79
13.3
5.55
1984 85

5.9
86

87

8.25
88

30.93
29.4

37.58

Revenue

22.25
16.96

10.7

89 1990 91

92

93

94

95

96

97

98

99 2000

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


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.

Motorolas 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 its 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 theSix Sigmaquality 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 usingGSM standard inHanover, 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-waypagerwhich allowed users to receive
text messages and e-mail and reply with a standard response.

4.

2000 : Motorola andCiscosupplied the world's first commercialGPRScellular network toBT


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 wirelesscable modemgatewaywhich combined


a high-speed cable modemrouterwith anethernet switchand wireless home gateway.

6.

2003 : Motorola introduced the world's first handset to combine aLinuxoperating


systemandJavatechnology with "fullPDAfunctionality".