Motorola is among the biggest telecommunication industries in the world. The company has grown significantly all over the globe, resulting to an increase in revenues. However, certain factors have been affecting the company, leading to the reduction in the market share. For this reason, it is better to analyze the market environment of the company in relation to the external market environment. Additionally, Motorola needs to evaluate its strengths and weaknesses for purposes of establishing new strategies that are going to help it improve its revenue and market sales. Therefore, Motorola strengths, weaknesses, opportunities and threats are described together with the strategic opportunities for purposes of increasing their market sales.
Motorola Opportunities and Threats
Motorola has an opportunity with the wide range of products it provides to the consumers. The consumers are able to choose a product from the wide variety without having to check for another company, leading to an increase in revenues for the company. Secondly, how each product is strategically located in the market is making it easier for the company to increase its revenue. For instance, it has products to suit the military market and other products that suit the public demand of the company. In this situation, Motorola Company can easily penetrate a market saturated with competitors and easily increase their customer base (Motorola, Inc., 2001).
The second opportunity is that Motorola can easily expand its products to foreign countries. Since Motorola has a wide range of products, it can easily provide its products to suit the needs of consumers in the foreign market. In this case, Motorola will not incur many expenses in the process of marketing its products in a foreign company as compared to its competitors. For this reason, their competitive advantage makes it to have an opportunity of selling its products in foreign countries.
On the other hand, Motorola is facing serious threats. First, technological advances that are taking place across the globe are making Motorola to lose many of their customers. This is because its products are being overtaken by technology resulting to obsolete products in the market. This means that the company is going to have increase in expenses due obsolete items. Additionally, Motorola is having difficulty in keeping with the current trends of technology that suits all its consumers. If this continues, Motorola is going to lose its consumers reducing its revenues significantly (Motorola, Inc., 2001).
The second threat is that Motorola is facing constant competition. In the mobile division, companies like Nokia and Sony Erickson are currently taking the market share decreasing Motorola customer base. Additionally, its competitors are introducing new products that are up to date with the currently technology, while Motorola is having difficulties. For this reason, consumers are shifting to the new products since they suit their current needs as compared to Motorola products. Therefore, if this threat continues to affect Motorola, it is going to decrease its revenues significantly, leading to closure of the division.
Motorola Strengths and Weaknesses
One of Motorola strengths is that it has high quality products. When Motorola products are compared with other products, it is clearly seen that it has high quality products. In this case, consumers can be able to rely on Motorola in terms of quality of their products. Additionally, Motorola products tend to withstand any harsh conditions as compared to its competitors’ products. Moreover, the company is extremely tolerant making it possible for the products to go for a long time without becoming destroyed. Its high quality brands are enhanced by the solid manufacturing Motorola has in making its product. In this case, Motorola should take advantage of its strength and use it to make its products.
The other Motorola strength is that it has an excellent marketing strategy. This is where it has produced a variety of products to suit the consumer needs. Motorola marketing department has established that the only way it can market its products to increase its customer base is through the creation of a variety of products. This way it is able to reach a wide range of consumers, increasing their customer base. For this reason, Motorola should capitalize on the strength of an excellent marketing strategy because it will raise profitability for the company. In this case, it has a competitive advantage over the other companies (Robinson, Munter & Grant, 2004).
On the other hand, declining cell phone market is a weakness, affecting Motorola Company. During the last few years Motorola has lost its market share to the new competitors. The cell phone has new companies rising in the market with new phones that suit the customer demands. Two of the companies that are proving to be great competitors of Motorola are Nokia and Apple. The two companies have been producing new products for their customers in order to gain competitive advantage over the other companies. As a result, Motorola is continuing to lose its customers. Therefore, this is resulting to the declining profits in Motorola.
Motorola Strategic Options
The first strategic option is to face out unproductive divisions. This is where the company is considering doing away with the cell phone division. The advantage of this strategy is that it is going to reduce massive expenses the company is experiencing. On the other hand, the company is going to lose brand recognition in the market. Motorola is going to lose the increasing number of customers it acquired in the industry.
The second strategy of Motorola is reviving the cell phone division. The management of the company has noticed that if they sell the cell phone division they are going to lose a brand that has made a name in the market. The main advantage of this strategy is that they are going to increase the profitability levels. However, they are going to spend a lot of money reviving the cell phone industry and yet they can use the money in another way.
How Motorola Corporate Strategies and Organizational Structure should be designed to Solve the Company Strategic Issues. Motorola should consider introducing new strategies that involve massive changes. In this case, it should consider changing the management as part of corporate restructuring of the organization structure. Secondly, it should introduce a new structure that promotes customer care. Therefore, based on the above facts, the structures should be designed in a way they put the customers need and quality first (Motorola, Inc., 2001). This will solve the company strategic issues, leading to increased profitability in the company.
First, the owner of Motorola should consider changing the management to pave way for strategic changes to improve sales in the current market environment. The owners should consider hiring a management that has the drive to take Motorola to the next level. Secondly, Motorola should consider reviving the cell phone division. In this case, it should consider creating measures that will make sure it does not fall again to the hands of its competitors. Finally, it should consider expanding its markets to other foreign countries, where their products have not been sold. However, the company should conduct a research on the markets that it is going to start with, when introducing it products. If Motorola decides to follow these strategies, it is going to increase their revenues significantly, resulting to immense profits in the company.