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MOTOROLA-THE DOWNFALL OF INNOVATION

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Shaurya Agrawal

on 9 September 2013

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Transcript of MOTOROLA-THE DOWNFALL OF INNOVATION

MOTOROLA
THE FALL OF TECHNOLOGY ICON

INTRODUCTION OF THE GIANT
Founded on 25 sep 1928 in USA by joseph and Paul gavin.
It produces cellular and many other video broadcasting devices.
It focused on phones.
It developed its phones in google's open source Android.
MARKETING STRATEGY
It focused on style and looks
It targeted youth
It worked on product concept
Always revising their business model
Razr was a marketing gem.
Its sleekness was beautifully shown in promotions.
They used the style icon abhishek bachhan for their tv promotions
FINANCIALS
It started facing losses from 2007
after that they never regained their place
their balance sheet showed a downfall in every year.
HUMAN RESOURCE
They took humans as an asset.
They trained them a lot.
48000 were eliminated which was 1/3 of the total employees
This blowed their man power as well and contributed in their loss.
REASONS FOR DOWNFALL
It did not come into 3g
It started innovating in the wrong direction.
Rivalry ruined it.
Breakup with apple was a major shock.

SWOT ANALYSIS
The co. was having many internal and external factors affecting its growth.
financials
Time 2009 2008 2007 2006 2005
P/L (148) (2,391) (553) 4,092 4,605
STRENGTH
Innovation was its strength.
Apple's collaboration.
Stylish models.
Sleek design.

WEAKNESS
Poor after sale.
Not very durable.
Features lower than its rivals.
Working was opposite.
OPPORTUNITY
Smart phone market.
Style can be mixed with feature.
Snob appeal articles
THREAT
Aim of this company
Quality was a primary thing.
heavily invested in employees training
It has other business like universities.
The first portable phone was given by this company.
New entrants was the biggest threat.
New technologies.
Decreasing craze of flap in consumer.
Monotonous models.


Steps to downfall
Entry of high end competitors.
Slow in launching new products.
Price cut erodes brand image.
Focus was on v3 so direction was lost of development.
Step of downfall
Consumer dissatisfaction.
They felt that the product was outdated and poor quality.
Nokia provided a better product line.
They adapted the technology very late.
Conclusion
Marketing myopia.
Full transcript