MOTOROLA

Failed to Change

M Sajjad Akbar – Hafiz Muhammad Usman –Aqsa –Syed Anas Munir

Contents

History 2

Motorola Misses after RAZR 2

Motorola Failed in change management due to following reasons. 4

No proper Leadership 4

Failed to understand Business challenge 4

Right business but Wrong timing 5

Motorola missed the movement to 3G innovation 5

Motorola was a stodgy Midwest company in a fast paced Silicon Valley world 5

Motorola got out of the right business at the wrong time. 5

Motorola just ran out of time. 5

Motorola stopped innovating. 6

Motorola didn't execute. 6

Motorola didn't grow. 6

Motorola is a loose confederation of warring tribes. 6

Motorola never had the sense of urgency. 6

Conclusion 6
History
The founder of Motorola-Paul V. Galvin and his brother, Joseph E. Galvin, starts with purchasing a
battery eliminator business in Chicago at September 1928 and named the company as Galvin
Manufacturing Corporation.

Galvin's first product is to develop is a battery eliminator which allows electronic devised to run
electronic devices to run on electricity rather than battery.

Later the name Motorola was given to Galvin's first car stereo. 'Motor stands for car and 'ola’ stands for
sound. year 1963 onwards. Galvin production lines were dominated by manufacturing radios for cars
and receivers up to 1947 where they produce their first television and the company name Galvin
Manufacturing Corporation to Motorola by continuing manufacturing communications medium

Starting from the year 1967, Motorola expands its markets into other countries like Australia, Canada,
France, Hong Kong, Israel, Italy, Japan, Malaysia, Mexico, South Korea, United Kingdom and West
Germany. Later on 1969, Motorola starts supplying the National American Space Agency (NACA) with
radio equipment so astronauts can communicate with their Earthly bases. The first man on the moon,
Neil Armstrong communicated with Earth whilst on the moon using a Motorola Radio.

In 1973, Motorola introduce the world's first cellular mobile phone-DynaTAC which uses radio
technology and is released in 1984. Then, Motorola starts to combine computer and radio technology to
make the first cellular network which the DynaTAC operated on Motorola began to make mobile
handsets Smaller and smaller sizes. In 1996 Motorola released the StarTAC which weighed in at 88
grams only. In 2001 Motorola introduces the Motorola v60 phone the world first metal mobile phone.
Next in the year 2002; Motorola developed released a GPS chip that could be installed into consumer
electronic to enable location positioning. Also Motorola released a 3g which can be transmitted over
CDMA network.

Finally, Motorola releases the Cross-Technology PoC product line that enables subscribers to have
"push-to-talk connectivity across and between GPRS, CDMA2000 1X, and Wi-Fi networks and Motorola
releases Ojo personal video phone. Ojo promises broadband connectivity and a video phone that
doesn't break up which is commonly known with video phones.

 Motorola just announced that it is exploring options to renew its financial health, including possibly
selling its mobile-handset business. Despite Moto's many problems, I don't think this makes much sense
for a number of reasons.

Motorola Misses after RAZR

For several decades leading up to 2007, Motorola enjoyed significant success in the cellular telephone
industry, including in telephone handsets.  From the first hand-held mobile phone (in 1973), to the first
commercial portable phone (DynaTAC, in 1983), to the first portable “flip” phone (MicroTAC, in 1989), to
the first clamshell phone (StarTAC, in 1996), to the iconic RAZR (in 2004), the firm was known as an
innovative competitor.

With the advent of the RAZR Motorola’s Mobile Devices unit saw operating earnings increase from
$511M in 2003 (the year before the RAZR) to nearly $2.7B in 2006.  It also gained significant market
share.  As most readers know, however, Motorola subsequently failed to deliver equally compelling
products.  In 2008, Mobile Devices lost more than $2B.

The winners over this period were smart phone makers such as Apple, HTC, and Research in Motion
(which makes BlackBerry devices).  Motorola failed to see that the factors that had made its previous
devices successful—mechanical, electrical, and radio engineering and, with RAZR, fashion—were no
longer sufficient.  Software had become more important than continued improvements in the hardware
alone.

Motorola is having some significant problems in the cellphone market, and has been for some time.
Moto seems to have lost its motivation to innovate. The introduction of the RAZR line of handsets took
the market by storm with its unique form factor and ergonomics. It was a come-from-behind product
when Moto was down in the market. But that was several years ago.

Meanwhile, Nokia, LG, Samsung, etc. have all moved on, competing with Moto and offering new enticing
products that have built market share. Even Research in Motion's BlackBerry has gained market share at
the expense of Moto. Motorola is now seen as the boxy car company while Nokia is seen as building
sleeker sports cars (along with LG and Samsung).

And that is Moto's biggest problem. The company needs to come up with a winner to follow the RAZR,
and it hasn't. Further, Motorola has a disjointed product line at this point, with hundreds of different
phones, different styles, different operating systems (OS) and even different user interfaces, and most of
them not very competitive. It needs to consolidate around a few efforts and take them forward in a
concentrated matter, rather than trying to be everything to everyone and not doing it very well.

As for competitors and general strategy, Moto has a real problem, and not just from  Google's new
Android consortium (of which it is a member) or from the sleek iPhone from Apple . It just has too many
platforms! Motorola currently has or is working on Symbian, Linux, Windows Mobile, Moto proprietary,
Linux and soon Android operating systems. That's way too many to manage and creates a dilution of
precious resources. No wonder it has so much trouble building a compelling product!

However, Motorola does need to play in the Linux space, as open source will be a major component of
the emerging markets. But users could not care less what the OS is (do you know what the OS on your
phone is?). What they want is functionality and ease of use. No one really cares what the OS of their car
is, or of their DVD player or HDTV. It's about usability and functionality. That is why the iPod did so well--
no one asked about its OS, but loved its functionality and the way it fit into their lifestyles. That is the
puzzle piece Moto is currently missing.
But splitting off its cellphone business seems pretty drastic, like cutting off all your arms and legs. What
would Moto be without the phone business, which represents the majority of its revenues? I could see
potential spin-offs of some of the other businesses the company has acquired recently (like Symbol or
Good Technology, which are actually making money and could generate significant cash). It was a good
move to make when Moto was in better shape, but investing management time to make sure those and
other businesses succeed when its core business needs so much attention may not be a good idea.

Regarding the speculation about its phone business spin-out, I suspect the statement was really made
more to relieve pressure in the system than anything else. I would be shocked to see Motorola do it, but
saying it is thinking about it allows the company to stifle some stockholder criticism. And I can't see
anyone wanting to buy the business. Many companies are exiting the cellphone business, saying it has
become too competitive and too hard to make a profit. The majors (Nokia, Samsung) probably wouldn't
want the Moto business, and the smaller players (Kyocera, Huwai, etc.) probably couldn't afford it.

So I think the long-term effect is that Moto will have to rebuild its business and get its act together. In
the short term, it may help Nokia somewhat. Bottom line, I don't see anyone coming along to pick up
Moto's handset business in its current state.

Motorola Failed in change management due to following reasons.

What can say in Motorola is intermediate failure which is almost losing out their entire mobile or smart
phones market share to their competitors such as Apple, Samsung, Nokia and so on.

Nokia is having highest sales among the competitors at the year 2011 which is 11, 699, 4 units. Taking
over the mobile device market share 23.4% followed by Samsung, Apple and so on. Where by Motorola
is at the 9th ranking of 2.1% with sales of 10.075.3 units only. So what exactly are the reasons which led
to this failure imposed on Motorola company

No proper Leadership
Motorola was too arrogance at one time not knowing that their other competitors were coming into the
market. The rivalry of the industry. Motorola currently is that they attempted to turn their wayward ship
around with repeated job-cuts and still confused with the corporate restructuring. Most significantly.
Motorola has decided to spin-off its handset business. in hopes that it can still make money from its cell
phone making business

However, the problem Motorola is currently facing is rooted in the company leadership’s apparent
inability to get the right person for the executive manager’s position of its various cell phone divisions
and refusal to cut-off its useless heads and staff fresh.

Failed to understand Business challenge

What Motorola failed to realize was that the cell phone market changed the consumer's buying
decisions from "hardware", to a "software decision". In the trend now, customers want to run real,
native, apps on their phones. End of story After the initial boom of cell1 phone designs in early 00s,
people don't care anymore if the new RAZR is 1mm thinner than the previous model. Phone form
factors and battery life having become good-enough in the last 4 years for almost all manufacturers. and
so the interest and market differentiation has shifted towards software solutions instead. Also Motorola
was too concentrating on putting their product research and development instead of marketing which
because they lost in the battle of mobile device market. Motorola often attracted to business that are
pioneering a brand new product or industry. While a precious-few are successful most fail. Businesses
that are radically different from existing kwon business can ever scare off customer's rather than attract
them.

Each new product intro to the market will continue with growth. Motorola does not understand to
invent or create product according to market needs. the demand which is what consumers want not to
create product according to what they think the consumers want This is why they fail to strategize their
business continuously.

Right business but Wrong timing

Motorola got out of the right business at the wrong time Motorola at one time owned lots of spectrum
which it traded for equity in Nextel So it starts every year with zero sales while firms which as
Qualcomm own intellectual property worth billions and Verizon AT&T and Sprint have millions of
customers who will pay them $500/year Motorola turned down a change year ago to buy both
Qualcomm and Nokia (for $20 million).

Nokia is having highest sales among the competitors at the year 2011 which is 11,699.4 units, taking
over the mobile device market share of 23.4%followed by Samsung, Apple and so on. Where by
Motorola is at the 9th ranking of 2.1% with sales of 10,075.3 units only. So what exactly are the reasons
which led to these failures imposed on Motorola company.

Motorola missed the movement to 3G innovation Sure, it did — but remember its biggest customers,
the U.S. wireless carriers, didn't think they wanted 3G. So Motorola listened to its customers, when they
should have been listening to its customers' customers.

Motorola was a stodgy Midwest company in a fast paced Silicon Valley world. There is probably some
truth in this. The Razr was an aberration — a wild success. It is hard to have a fashion business inside an
industrial firm. Today Nokia is moving into graphics-rich cell phone games while innovation from
Motorol is giving you RAZR-lite retreads in puke colors. Apple understands design; Motorola doesn't.
Motorola's fashion sense only rivals New England Patriots' coach Bill Belichick's.

Motorola got out of the right business at the wrong time. Motorola at one time owned lots of spectrum,
which it traded for equity in Nextel. So it starts every year with zero sales while firms such
as Qualcomm own intellectual property worth billions, and Verizon, AT&T and Sprint have millions of
customers who will pay them $500/year. Motorola turned down a chance years ago to buy both
Qualcomm and/or Nokia (for $20 million!).

Motorola just ran out of time That's what every losing coach in history says. Doesn't fly. Maybe it
had the wrong management but running out of time was not the problem. It did have a computer guy
( Zander) who had to learn the industry, but that could have been bridged. After all, what did Steve Jobs
know about phones?

Motorola stopped innovating True. Do you carry a BlackBerry? A smartphone? Should Motorola

have been a platform company, like Google is moving to? The Razr was the precursor to both the iPhone
and the BlackBerry. By being late, it surrendered the high ground. It should have jumped on Palm. Plus,
no one on the Motorola's senior management team ever sold a product to a consumer. It really doesn't
sell licenses; it sells phones to teenage girls on Facebook.

Motorola didn't execute Exactly so. Its customers — the wireless carriers — had a hate-hate
relationship with Motorola, which did not deliver what it promised it would. Motorola never drank its
own Kool-Aid; they never built the "seamless mobility" lifestyle among its various product groups. Can
you see a way that consumers could have wanted to tie in their needs at home, at work, on their person
and their auto? Sure you can. But Motorola could never bring these warring tribes together inside the
firm. Face it — it communicated mainly by rumor.

Motorola didn't grow In the past, unhappy stockholders would just sell their stock. Today, they moan
and scream and force stupid actions. Motorola now has to go through gyrations which will make it easier
for its competitors. Right now, no one wants to buy this division so it will be spun off to the
stockholders. This looks like a very tough business to run. Turning a company with a downward spiral is
the single hardest job in technology.

Motorola is a loose confederation of warring tribes. Of course it is. It is a company of 66,000 employees.
But the warring tribes never coalesced. This was the problem that Zander tried to fix. Too little, too late.
Game over.

Motorola never had the sense of urgency. Could be true. Everyone else moves at warp speed;
Motorola jogged at its own pace, more like a monopolist than a paranoid competitor.

One of the benefits of capitalism is that it kills off those that are slow to innovate, slow to execute. But I
feel somehow badly that the firm that invented cellular is now the

Conclusion
However, Motorola does need to play in the Linux space, as open source will be a major component of
the emerging markets. But users could not care less what the OS is (do you know what the OS on your
phone is?). What they want is functionality and ease of use. No one really cares what the OS of their car
is, or of their DVD player or HDTV. It's about usability and functionality. That is why the iPod did so well--
no one asked about its OS, but loved its functionality and the way it fit into their lifestyles. That is the
puzzle piece Moto is currently missing.

But splitting off its cellphone business seems pretty drastic, like cutting off all your arms and legs. What
would Moto be without the phone business, which represents the majority of its revenues? I could see
potential spin-offs of some of the other businesses the company has acquired recently (like Symbol or
Good Technology, which are actually making money and could generate significant cash). It was a good
move to make when Moto was in better shape, but investing management time to make sure those and
other businesses succeed when its core business needs so much attention may not be a good idea.

The company’s success may depend on it. Basically this can be done with the following steps.
Empowering Leadership for Motorola to be successes is to empower leadership. This type of business
management style has also been called transformational leadership. Transformational leadership is the
type of motivational style that draws others in and inspires them to achieve something greater than
themselves. However, the employees and staff members of Motorola do not merely do the work; they
also become better people in the process. Well-Defined Vision Motorola need to have a new well-
defined vision. A corporate vision is a scripted understanding of what a company wants to do and how
they want to accomplish it.

allows members of an organization to unite for a common cause who singular aim and all energy
focused in one direction. Relevant Knowledge of the Business Market Motorola need to have relevant
knowledge of the business market. In order to do anything well,a person or company must do their
homework to gain a deep understanding about the factors that are essential for success. These days as
the World Wide Web continues to expand, there is no excuse for a would-be to lack knowledge of
whatever technology business they feel led to pursue.

Motorola need to develop a proper communication strategy and roll-out plan to create understanding
and drive acceptance internally and externally. Apart of the restructuring in the top management, Staff
transition also needed. Humana Resource department of Motorola need to develop plans for staff
transition, redeployment