Motorola, Inc has encountered significant financial loss over the past decade. Although, they have made several strategic changes during this time, they have not been able to restore the company to its previous financially stable operation. By doing a SWOT analysis, Motorola may be able to develop a strategy to boost the company’s performance. Regardless of what strategy is incorporated, it must be able to return the firm to profitability.
Motorola’s external environment has a large impact on its opportunities and threats. The threat that is impacting Motorola the most is new competitors based in different locations worldwide. These ...view middle of the document...
Another opportunity is joint ventures and new alliances, which Motorola is already benefitting from. Between 1991 and 2000, General Instrument Corporation, which “developed the all-digital high-definition television (HDTV) technical standards” (Hitt, Hoskisson, &Ireland, 2011), and Cisco Systems Inc. joined forces with Motorola.
A continuously changing opportunity is the growing need in communication and the vast target market. As long as technology continues to advance, there will always be a need for new communication devices. The footprint that Motorola’s market arena covers requires them to market them to all ages and race. This gives them the chance to create an assortment of designs that attract consumers. Unfortunately, Market growth can attract major competition as well.
Motorola has very few weaknesses. The two major ones are a lack of successful business practices and low quality products. Hopefully, the change in leadership will eliminate the problem with unsuccessful business practices. Leaders have since analyzed the company’s direction and products offered. Because of the low quality products, Motorola also has poor consumer relations. It is hard to promote and sell a product when a company has a reputation of poorly made products.
The strengths identified by the SWOT analysis are what have kept Motorola from bankruptcy or selling out. In 1968, Six Sigma was developed to help Motorola improve its manufacturing process, which would result in higher quality products. The use of the Six Sigma approach has been one of Motorola’s greatest strengths. Wide-range quality enhancement training was also implemented. Other strengths include market software development, innovation, improved customer service and a large number of employees and offices. Each of these contributes towards the success of the company.
Motorola’s strategic options consist of both advantages and disadvantages. The main focus of the company at this time is to make it profitable again. In order to do this, they must better understand consumer demand. They must also cut production cost. The disadvantage to cutting costs is the 3,000 jobs that will be eliminated.
The spinoff of the Mobile Devices segment that was postponed will be a huge advantage...