Case Study, History, and Strategic Analysis of Motorola, Inc.

Topics: Mobile phone, Wireless, Bluetooth Pages: 13 (3798 words) Published: December 8, 2010
Case Study, History, and Strategic Analysis of Motorola, Inc.
1. Describe the salient opportunities and threats that exist in Motorola’s external environment.
2. Describe the company’s most prominent strengths and weaknesses.
3. Describe the advantages and disadvantages associated with each of Motorola’s strategic options.
4. Describe how the corporation’s strategy and organizational structure can be designed to solve the company’s strategic issues.
5. Explain how Motorola should proceed.

The company that I chose for my strategic analysis is Motorola, Inc. The popularity of cellular phones has made many people familiar with Motorola products, as such service providers as Verizon, AT&T, and Sprint use cellular devices that Motorola creates and manufactures. The company, however, does more than just produce cell phones, and it is currently trying to focus its current strategic attention on semiconductors (citation needed).

History and Financial Portfolio
Paul V. Galvin founded Motorola, Inc. in 1928 when he and his brother Joseph E. Galvin purchased a business from the Stewart Storage Battery Company that made battery eliminators used in operating radios using household current and created the Galvin Manufacturing Company. The company started with five employees and grew gradually. It expanded its business into the automobile industry by introducing car radios that it sold to independent car distributors and dealers. When Galvin Manufacturing entered the automobile industry Galvin coined the name Motorola to link the ideas of motion and radios (citation needed).

Daniel E. Noble joined Galvin Manufacturing in 1940 as its director of research. A pioneer in FM radio communications and semiconductor technology, he originated the first hand-held two-way radio for the Connecticut State Police. He brought his designs to Galvin Manufacturing and developed a two-way radio system for the US Army Signal Corps and Galvin Manufacturing subsequently played a significant role with such radio and communications equipment as the walkie-talkie and handie-talkie in World War II (citation needed).

Motorola made its first public stock offering in 1947, which is when it officially changed its name to Motorola Inc. In 1948 Motorola entered the television business and sold more than 100,000 TV sets in one year, making it the fourth largest manufacturer of them. During the late 1940s it began to supply car radios to Ford and Chrysler plants for installation in their automobiles (citation needed).

Motorola took advantage of expanded allocations of radio frequencies to introduce dispatcher radios with aggressive marketing, and its reputation for reliable equipment earned it a leading role in the industry. Noble then launched a Motorola research and development facility in Phoenix, Arizona. Anticipating the enormous potential of the newly invented transistor, he helped Motorola become one of the world's largest manufacturers of semiconductors (citation needed).

By 1950 Motorola’s net sales were $177,104,669 and it had 9,325 employees. Its first color television in 1952 was unsuccessful due to technical problems, a high price, and the failure of broadcasters to offer an adequate amount of color programming. It pulled the product from the market in 1956 (citation needed).

Some of the innovations for which Motorola is famous are pagers, which delivered radio messages selectively to particular individuals carrying them, and the Motrac, which enabled car radios to operate without running the engine. It was also the first company to use the epitaxial method to mass produce semiconductors and developed the first rectangular picture tube for color TVs in a joint venture with National Video (citation needed).

It pioneered in using low-cost techniques for making the silicon rectifiers in automobile alternators. Its Automotive Products Division began producing alternators in place of car generators, inaugurating the...
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