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MOTOROLA-THE DOWNFALL OF INNOVATION
Transcript of MOTOROLA-THE DOWNFALL OF INNOVATION
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.
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
It started facing losses from 2007
after that they never regained their place
their balance sheet showed a downfall in every year.
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.
The co. was having many internal and external factors affecting its growth.
Time 2009 2008 2007 2006 2005
P/L (148) (2,391) (553) 4,092 4,605
Innovation was its strength.
Poor after sale.
Not very durable.
Features lower than its rivals.
Working was opposite.
Smart phone market.
Style can be mixed with feature.
Snob appeal articles
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.
Decreasing craze of flap in consumer.
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
They felt that the product was outdated and poor quality.
Nokia provided a better product line.
They adapted the technology very late.