Short description of the case
For years Motorola and was among the world’s most successful consumer electronics firms. The firm then controlled the emerging U.S. market for cellular telephones and pagers but, like many other firms at the time, was a bit complacent and not aggressively focused on competing with the Japanese. Motorola has remained the exception: Today it is one of the world leaders in mobile communication technology, including the manufacture of cellular telephones, paging devices, automotive semiconductors, and microchips used to operate devices other than computers. Japanese firms began to flood the U.S. market with low-priced, high-quality telephones and pagers. Motorola was shoved into the background. Motorola then decided to fight back and regain the firm’s lost market position. This fight involved a two-part strategy: First learn from the Japanese and then compete with them. To carry out these strategies, executives set a number of broad-based goals that essentially committed the firm to lowering costs, improving quality, and regaining lost market share. Managers were sent on missions worldwide, but especially to Japan, to learn how to compete better. Motorola also try to achieve Six Sigma quality – which is become main strategy of Motorola. By using this strategy, Motorola try to achieve a perfection rate of 99.9997%. When Motorola actually achieved this level of quality, it received the prestigious Malcolm Baldrige National Quality Award. Motorola become success on its operations abroad, especially in Japan. It also generates over 56% of its revenues abroad.
Problem identification of the case
From the case, one of Motorola’s strategy in doing the business is expanse its business abroad. The firm then needs to concentrate on how to do its business abroad and what kind of strategies should be taken to achieve its goal. Motorola controlled the emerging U.S. market for cellular telephones and pagers. Motorola has also won many battles around the world in order to doing its business abroad. But, like many other firms at the time, was a bit complacent and not aggressively focused on competing with the Japanese. Motorola began to fall in its competition with Japanese. For that reason, Motorola have to find new strategies to win its battles, not only the competition with Japanese but also other countries that becomes Motorola’s target market. Formulation of problem solving
In terms of finding the strategies to do the business, a company must first define its vision and mission. Economic success, indeed survival, is the result of identifying missions to satisfy a customer’s needs and wants. The organization’s mission defined as its purpose – what it will contribute to society. Mission statements provide boundaries and focus for organizations and the concept around which the firm can rally. The mission states the rationale for organization’s existence. Developing good strategy is difficult, but it is much easier if the mission has been well defined.
Motorola also try to picture what their objectives to deal with the competition around Japanese and around the globe. Motorola’s fundamental objective is to attain total customer satisfaction. Others Motorola specific goals are to achieve competitive advantage by becoming the best in its class in terms of people, marketing, technology, product, manufacturing, and service, to increase global market share and to achieve superior financial results and improve shareholder value.
Before arrived in the concept of strategies, a company should make an SWOT analysis. SWOT analysis consists of: Strengths
Motorola also build its SWOT analysis based on the market experiences. Motorola’s SWOT analysis comprise of: 1.Strengths
Motorola is one of the world's leading providers of wireless communications, semiconductors and advanced electronic systems, components and services. Motorola is an inventor of technology...
References: Heizer, Jay & Render, Barry, Operations Management, Eight Edition, The Prentice Hall, 2006.
Pande, Peter S, Neuman, Robert P, & Cavanagh, Roland R, The Six Sigma Way: How GE, Motorola, and Other Top Companies are Honing Their Performance, McGraw-Hill Companies, Inc, 2000.
Pyzdek, Thomas, The Six Sigma Project Planner: A Step-by-Step Guide to Leading a Six Sigma Project Through DMAIC, McGraw-Hill Companies, Inc, 2000.
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