CASE STUDY

Motorola in China

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Motorola in China

The Strategic and Environmental Reasons of Why Motorola Chose To Enter China

Today, Motorola smartphones' sales are highly up in China and the country is second largest smartphone market for Motorola Mobility (Back, 2011, n.d). This potential success in China was seen by Motorola far back from recent years. According to the President and Chief Operating Officer of Motorola, Mike Zafirovski, China has been a very important partner and its market has been really important for the company around the globe. Further, China's market is also a significant manufacturing base and research centre for the firm. Moreover, the size of China market is also very much significant for the company. This statement of the Motorola's president and chief operating officer indicates that the market size of China; its research centre; and its manufacturing base hold great significance for the company and became the factors that have attracted Motorola for entering in the country. According to the current CEO of Motorola, the cellphone market of China is the biggest one across the world, and that makes this country unavoidable for any cellphone maker (Back, 2011, n.d). So, in view of the given information, one of the most significant factors behind Motorola's entrance in China is its 'market size'.

Initially when the company entered into the Chinese market, the top management carefully evaluated current and potential circumstances of the country and recognized the significance that communication infrastructure holds in a rapidly developing nation. It indicates that China has recognized as the market that have huge potential of growth for communication business. So, Motorola recognized the opportunity of first mover status in China and availed it, due to which the company is now an industry leader of China cellphone market. When China was at developing stage and the mobile communication was still a novel concept that no one in particular was selling there, Motorola took this opportunity and entered into the country at prime time. This early evaluation and recognition really become significant factors, since the firm enjoyed 10 successful years of selling its pagers in Chinese market, at that time citizens of the nation carried them for convenience and as a symbol of social status (Berken & Dai, 2002, p.3). So, Motorola was the first foreign company that entered into China, where there was almost zero percent competition and therefore the company drastically conquered the Chinese cellphone market. Thus, it is represented that first mover advantage is also an appealing factor for Motorola to enter in China. Hence, it can be stated that Motorola recognized China as being an important partner and market for the company, mainly because of its market size; research centre and manufacturing base. Further, when Motorola decided to enter in China, the country was at developing stage and therefore communication infrastructure held importance for it. So, Motorola also see growth opportunity and took first mover advantage by entering into China's mobile phone market.

Effectiveness of Motorola's Entry Strategy in ...