Motorola Inc

Motorola Inc

Introduction

Motorola Inc started as an American company by the two brothers Joseph and Paul Galvin on September 25, 1928 located in Illinois. The company was initially known as “Galvin Manufacturing Corporation” until 1943 when the company went public and coined the name Motorola as its new identity. In the beginning of the year 2011, 4th January to be exact, the company split itself into separate independent public industries one being “Motorola Solutions” and the other one being “Motorola Mobility”.

Motorola's first device was a battery eliminator that connected direct current to the alternating current. Currently Motorola is one of the major leading telecommunication industries in the world. It produces a range of products such as wireless telephones: its MOTORAZR series capturing the market like wild fire, network infrastructure gadgets such as signal amplifiers and cellular transmission base stations. Motorola has been a global leader when it comes to communication, it s inventions and innovations have revolutionized as the world communication has also evolved.

Discussion

The company saw a downfall in revenue of 14.5% in the year 2007. The income was affected mainly due to the decline in sales coming from the mobile segmentation of the market. The loss in sales affected share prices in the year 2008 by pushing down $0.09 per share. From the year 2004 to 2007 the company grew itself by acquiring other firms and companies for instance acquisition of TTP Communications in 2006, Symbol Tech and Good tech. in 2007, and so on (The ABCs of spend analysis, 2007).

Today, Motorola has three major segments within it, Mobile Device Segment, Home and Networks Mobility segment and Enterprise Mobility Solutions Segment. The mobile device segment generates 52% of the company's overall net sales hence being very important, The Home and Networks Mobility segment results in 27% f the company's overall net sales while the Enterprise Mobility Solutions Segment generates 21% of the total sales (BusinessWeek, 2008).

Conducting a thorough analysis of Motorola, the company has a lot of strengths that is helping it retain its dominant position in the market. One of its biggest strength is its strong market position. Although Motorola has lost grip in the mobile phone segment it still holds a 4.5% of the world's market share, fourth in the world, just a ranking behind Nokia.

Strength of Motorola is its strong research and development team that has faced the intense competition coming from rivals very effectively. The breakthrough of smart phones drove huge firms like Nokia out of the industry but Motorola remained fiercely strong. released 6 Android-powered smart phones in 4Q09, including the Android-powered Motorola Droid, 22 smart phones models came in 2010 This decision has its sales mix, of which 42% now represents smart phones, as well as its profitability, given average handset price increased from $130 in 2009 to $224 in 3Q2010. The Enterprise Mobility segment saw a 10% drop in sales from 2008 to 2009, this drop in sales was attacked by the launch of an innovative series of mobile terminals capable of ...