Rachelle R.

Sumayo MBA-Thesis

June 15, 2013 Prof. Ismael C. Pangilinan, PhD

PRODUCTION MANAGEMENT CASE STUDY: Motorola's Global Strategy

I. Main Problem: How could Motorola compete in the global market share and regain its reputation on being one of the world's most successful consumer electronics firms? II. Secondary Problem: As Japanese firms began to flood the U.S. market with low-priced, high quality telephones and pagers, Motorola was a bit complacent and not aggressively focused in competing with the Japanese. What seems to be the reasons why Motorola has been unaggressive in the competition? III. Objectives: a. To determine the reasons why Motorola has reached their global market share decline. b. To determine the different components of Motorola's International strategy and how it affected their global fight back and the regain of the firm's lost position. c. To determine whether these strategies are still updated and can still keep up with the existing telecommunications industry.

IV. SWOT ANALYSIS: A. Strengths: * Managers were sent on a mission worldwide acquiring exceptional training that aimed in reducing their production costs while maintaining good quality. *The firm boosted its budget for R& D and employee training worldwide. B. Weakness: *Motorola was a bit complacent and not aggressively focused on competing with the Japanese.

C. Opportunities: *Introduction of new and highly advanced gadgets by hiring electronic and computer systems geniuses. D. Threats: *The aggressive business behavior of Japanese in terms of technology advances and the ever growing electronics industry standards set by human needs affect the way consumer would patronize a certain product. The revolution of system upgrade is also limitless. V. Alternative Course of Action (ACA): ACA 1: Strengthening of R & D which focuses on product innovation and development while maintaining a reduced cost that is afforded by masses. ACA 2: Intensive R & D which focuses on the introduction of highly advanced gadgets with improved quality & features that is unique from other competitors while maintaining a reputation of an elite brand known worldwide. ACA 3: Intensive R & D which focuses on the introduction of wide range of advanced gadgets with improved quality and features that will customize the needs of different classes of customers worldwide ranging from lower-priced mass market users to higher-priced premium product market users. Global Market Demand ACA 1: Product Innovation & Development: Reduced Cost ACA 2: Highly Sophisticated Gadget: Elite Brand Reputation in the Market ACA 3: Wide Range of Advanced Gadgets: Customization of Product Lines 4 3 Increase in Brand Sales/Revenue Reputation 4 3 2 5 Product Recognition & Use 3 5 TOTAL POINTS 13 16

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VI. Recommendation: Although cheap products have a niche in the industry in terms of high sales and revenues, competing over electronics industry today will require continuous and ever evolving introduction of new, exciting and highly sophisticated product that will entice each customers to patronage a certain product based on its uniqueness and application use in keeping the new millennium's lifestyle and

advances. This was seen on the works of Apple and Samsung companies which were responsible for the selling of their iphones, ipods, galaxy tabs and notes selling like hotcakes even it costs as much money. In addition, aside from developing new products, customization of products from low-mid-high end market users will keep a company in the business and in the worldwide market. VII. Conclusion: Intensive R & D which focuses on the introduction of wide range of advanced gadgets with improved quality and features that will customize the needs of different classes of customers worldwide ranging from lower-priced mass market users to higher-priced premium product market users has been the suggested strategy for Motorola Electronics company to adapt and apply in their operations in order to keep-up in the globalization and industrialization today.