University of Phoenix
Business Analysis Part I – Motorola Mobility
Deciding whether or not to invest in Motorola Mobility Holdings Inc. (MMI) requires critical and creative thinking. Research provides a greater understanding of business trending in order for stakeholders to make educated decisions regarding personal and business investments. The following passages present part one of a three-part business plan designed to aid the author, a mutual fund manager, in making a fundamental investment decision. A SWOT analysis of Motorola Mobility Holdings Inc. proposes pertinent details, encompassing internal and external stakeholders' needs, and further providing a scope of investor needs and how they are met by MMI. SWOT Analysis
"SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and for identifying both the Opportunities open to you and the Threats you face" (Mind Tools Ltd, 2011, SWOT Analysis, para. 1). The subsequent paragraphs represent a snapshot of Motorola Mobility from an internal and external perspective. Strengths
Operational efficiency. Resourceful manufacturing is an integral component of an efficient operation. Motorola (2011) stated, "From the warehouse floor to product delivery, mobility solutions provide access to information in real time and help automate operations, ultimately creating a seamless, error-proof work environment" (Motorola, 2011, Manufacturing, para. 1). MMI will have no debt at spinoff. According to Brand (2011), the disjointing of Motorola's corporate business divisions, Motorola Mobility and Motorola Solutions, means zero debt for MMI upon development. Therefore, the newly defined entity is more easily leveraged and less inclined to accrue disadvantageous debts. A pioneer of cell phones. – Motorola is a leader in the market for cell phone technologies and has forged a direct path to success. “Motorola is one of the pioneers of mobile phones, and along with Nokia and Ericsson it has one of the biggest and most profitable phone patent portfolios in the world." (Barak, 2011, Devices, para. 8). Innovative Products. Motorola Mobility has two of the most scientific smartphone products on the market. A Middle East news portal, Al Bawaba (2011), proposes one leading innovative Motorola product is highly regarded in Middle East and Africa: Motorola ATRIX is the world’s most powerful smartphone with a dual-core processor that is the fastest yet offered in a mobile phone and is designed to essentially become a user’s primary digital hub to create, edit and interact with documents, media and content. (para. 7)
Weak profitability. "Motorola Mobility Holdings Inc., spun off in January from Motorola Inc., declined in New York trading after the Droid smartphone maker forecast profit for this quarter and full year that trailed analysts’ estimates" (Miller, 2011, News, para. 1). While the current financial forecast is stunted, long-term focus on profitability is the key. Poor Customer Service ratings. Customer satisfaction is a dynamic component of any business whether the business is corporate, entrepreneurial, or nonprofit. According to Customer Service Scoreboard (2011), an online review and rating system, Motorola Customer Service rates a disappointing score of 36.33 out of a possible 200. Lag in LTE technologies (4G products). Motorola Mobility is slacking in the production of LTE technologies, causing a decrease in the company's market shares. MMI is currently working toward the manufacturing of patented silicon for the 4G products in the lineup. However, according to Woyke (2011), the competitors are taking the lead in the LTE market.
Google to acquire Motorola. "The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will...