Motorola
Motorola: China Experience*
This news was unsettling but expected for Brian Lu, the General Manager of Motorola China's Personal Communication Sector. He had just received a report on the most updated market analysis. The report was on the intensifying of market competition in the Chinese cellular phone industry and stressed the emerging Chinese brands, among which TCL is the current leader. TCL is eating shares from all of the international brands including Motorola. He knew the Chinese government's policy of promoting local companies over their international counterparts, and this report confirmed a fear that he had had since he was promoted to his current position. Brian understood that Motorola, as the number one foreign import/export company in China, was in a unique situation. Through the creation of complete locally sourced production and development, Motorola had established a strong infrastructure and developed powerful relationships in China. He now wondered, what was Motorola's best strategy to take advantage of their company's previous development? The company needed a plan of action and he decided to arrange a meeting to discuss how Motorola should react to these local brands and overall market competitive pressures.
Company Background
Motorola was founded by Paul V. Galvin in Chicago, Illinois, in 1928. Under the leadership of Robert W. Galvin, Paul’s son, Motorola expanded into international markets in the 1960’s and began to switch its focus from the previously dominant consumer electronics market it had targeted. The company sold its color television receiver business, which then allowed it to concentrate energies on high-technology endeavors in commercial, industrial, and government fields. By the end to the 1980s, Motorola had become the leading worldwide supplier of cellular phones. Following a merger with General Instrument Corporation, Motorola became a leader in cable modems and set-top terminals. This
This news was unsettling but expected for Brian Lu, the General Manager of Motorola China's Personal Communication Sector. He had just received a report on the most updated market analysis. The report was on the intensifying of market competition in the Chinese cellular phone industry and stressed the emerging Chinese brands, among which TCL is the current leader. TCL is eating shares from all of the international brands including Motorola. He knew the Chinese government's policy of promoting local companies over their international counterparts, and this report confirmed a fear that he had had since he was promoted to his current position. Brian understood that Motorola, as the number one foreign import/export company in China, was in a unique situation. Through the creation of complete locally sourced production and development, Motorola had established a strong infrastructure and developed powerful relationships in China. He now wondered, what was Motorola's best strategy to take advantage of their company's previous development? The company needed a plan of action and he decided to arrange a meeting to discuss how Motorola should react to these local brands and overall market competitive pressures.
Company Background
Motorola was founded by Paul V. Galvin in Chicago, Illinois, in 1928. Under the leadership of Robert W. Galvin, Paul’s son, Motorola expanded into international markets in the 1960’s and began to switch its focus from the previously dominant consumer electronics market it had targeted. The company sold its color television receiver business, which then allowed it to concentrate energies on high-technology endeavors in commercial, industrial, and government fields. By the end to the 1980s, Motorola had become the leading worldwide supplier of cellular phones. Following a merger with General Instrument Corporation, Motorola became a leader in cable modems and set-top terminals. This