Motorola

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TABLE OF CONTENTS

Executive Summary………………………………………………………………… Introduction………………………………………………………………………… History……………………………………………………………………………… Products and Services……………………………………………………………….. Competitive Landscape……………………………………………………………… Financial Review……………………………………………………………………. Conclusion…………………………………………………………………………… References……………………………………………………………………………

LIST OF FIGURES

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EXECUTIVE SUMMARY

Purpose of Report
The purpose of this report is to provide students with substantial information about the products and services, foundation, and financial standing of Motorola. This knowledge can be used to assess whether potential affiliation with the company is compatible with individual student interests. Company Products and Services

Since Motorola’s establishment in 1928, the company has grown substantially as a result of its innovative endeavors. Currently, the company sells wireless network equipment, including cellular transmitters and amplifiers. Also, home and broadcast network products consist of set-top boxes, digital video recorders, network equipment, IP telephony, and high-def television. Finally, business and government products include wireless voice and broadband data systems. Financial Standing

Presently, Motorola is the third largest firm in the industry of cell phone manufacturing following Nokia and Samsung. In the last consecutive years, Motorola has lost considerable market share, down from 22% in 2006 to 8% in 2008. Lastly, Motorola has continuously suffered loss of profit within recent years, from roughly $1 billion in 2007 to roughly $7 billion in 2009, and has reported no earnings per share growth.

History
In 1928, Paul Galvin along with his brother Joe Galvin started the Galvin Manufacturing Corporation and began making battery eliminators, which allowed early radios to be used on a household current instead of batteries. In 1930 the Galvin Manufacturing Corporation released the first commercially successful car radio named “Motorola”. Other early innovations include the development of a radio designed to receive police broadcasts and the creation of a handheld two way radio known as the ‘handy talkie’ for the military.

In 1947, the company was officially renamed to Motorola after its first car radios. Twelve years later Paul Galvin died in 1959, which resulted in his son, Robert, to take place as CEO. During this time, the company released a small radio receiver called a pager, which used mainly by hospitals. Throughout the ‘70s the company began to change its focus by investing in data communications hardware market and universal data systems. This resulted in Motorola developing its first cellular phone in 1983.

Throughout the 1980s, Motorola implemented a business management strategy called Six Sigma. This strategy seeks to improve the quality of products that are produced by identifying and getting rid of the cause of defects. The system was developed and implemented by Vice President Bill Smith in January 15, 1987. During this time Motorola achieved 3.4 defects per million opportunities. The implementation of this system was a phenomenal success. The following year, Motorola won the very first Malcolm Baldridge National Quality Award, given by the U.S. Congress to distinguish and encourage the search of quality in American business. Six Sigma has been such a success for the company that it has saved over $17 billion dollars from 1986 to 2004. Its success is also recognized by other companies such as GE, Ford and American Standard, who have also implemented the strategy in their own companies. During the 1990’s Motorola joined with Apple and IBM to create Power Pc, a microprocessor chip to compete with Intel. It failed and their cellular market share fell to 41%. In an attempt to recapture some market share in 1999 Motorola released a line of digital phones. In 2004, Motorola Introduced the RAZR phone line which was a series of clamshell...
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