Strategic Management of Motorola Mobility

This presentation discusses the strategic management of Motorola Mobility, including its mergers and acquisitions, competitive advantage, innovative ideas, and strategic implications. It also evaluates the company's strategy using VRIO analysis. The presentation highlights the unique technological innovations of Moto Z and its significance in the market.

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024
1
Strategic
Management

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Motorola Mobility

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About Motorola
 Industry: Consumer Electronics
 Reach: Global
 Parent Company:
 Till 2011- Independant
 2011-2014- Google
 2014 to present- Lenovo
 Revenue generated upto 3259 million
USD (third quarter of 2011)
 Market share of 36.2%

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Mergers and Acquisitions
 Acquisition of Motorola Mobility by
Google on 2011 for 12.3 Billion USD
 Merger with Lenovo on 2016 for 2.91
billion USD

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Strategic Position
 Innovation Strategy: First Mover
 Experience curve benefit
 Scale benefit
 Pre emption of scarce resource
 Reputation
 Buyer switching advantage

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The Business Strategy
 Integrating the goals, policies and actions
of the company
 Influencing the utilisation of physical capital
and human capital
 Increase employee skills through training
 Implementing high quality with Six Sigma
 Gaining competitive advantage through
innovative product designing

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Significance of the
strategy
 Orient the employees to the organisation’s objectives
 Ensuring the policies and actions are in alignment to
the company’s objectives
 Effective utilization of company’s resources
 Ensure the development and maintenance of skills
 Maintaining quality standards using six sigma
 Ensuring all the employees are skilled and understand
their job roles perfectly.
 Fostering an environment of creativity and innovation
 Strategic investments based on the ROI, and thus
preventing financial losses

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Porter’s Generic Competitive
Strategy
Low Cost Product Uniqueness
Advantage
Target Scope
Broad (industry
wide)
Narrow (Market
Segment)
Cost Leadership
Strategy: 1. Procure
products at lowest
prices. 2. Eliminate
wastage of parts. 3.
Facilitating usage of
refurbished parts
Differentiation Strategy:
1. Innovative ideas for
product. 2. Address
specific customer needs.
3. Using new
technologies 4.
Developing folding
phone technology
Focus Strategy: Low
priced and durable
parts, cutting
assembly costs
Focus Strategy:
Focussing on customer
base who enjoy listening
to music, travelling a lot,
taking high quality
pictures, including
students, travellers,
employed people, party
goers

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Motorola Foldable Phones:
 Moto Razr 2018
 Revival of the Moter Razr
 The phone will have a foldable screen
 Provide 2.5 inch exterior display, 0.75
inch multipurpose diplay and a 6 inch
primary display
 Display fingerprint scanner

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Innovative Ideas of Moto Z
 Moto Mods: this allows the phone to
transform into a projector, music player,
battery powerhouse with integrated
magnets
 Battery + Turbopower: 2600mAh battery
which can be charged in 15 minutes
 Advanced Camera: 13MP camera for perfect
picture resolution, Groupie mode for group
selfies, 2 year Google Photos subscription

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 Strong security: fingerprint scanner
 Ultra sharp display: Plays 4k videos
 Multitasking: Snapdragon processor
 Ultra Thin and Ultra light: Made from
military aircraft grade aluminium and
stainless steel with water repellent
coating

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Competitive Advantage from
the recent innovation
 Increased sales
 Competitive advantage
 Addressing special customer
requirements
 Introducing multifunctionality without
compromising quality
 High quality Mid range phones

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Strategic Implications
 Ensuring quality products
 Increasing market shares
 Improve company reputation
 Designing unique products
 Improving Economic poerformance
 Developing employee skills
 Implementing innovation and creativity

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Evaluation strategy
 VRIO analysis:
 Value: Yes. Technological Innovation
 Rarity: Yes
 Imitability: Yes. Imitable
 Organization: Yes. Exploited by the
organization

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VRIO Table:

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Conclusion
 Motorola has steep competition from
other mobile manufacturers
 Moto Z offers unique technological
innovations which makes it one of a kind

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References
 Chen, F. and Kodono, Y., 2014. Fuzzy VRIO
and SWOT Analysis of Chery
Automobile. Journal of Advanced
Computational Intelligence and Intelligent
Informatics, 18(3), pp.429-434.
 Motorola. (2018). Moto Z. [online] Available
at: https://www.motorola.in/products/moto-
z#ultra-thin-design [Accessed 10 May 2018].