Assessment of Motorola's Innovation Strategy: ENGG 440/954 Analysis

This presentation provides a strategic analysis of Motorola Mobility, examining its innovation strategies, competitive advantages, and market position. It covers Motorola's background, mergers and acquisitions (Google & Lenovo), and strategic positioning as a first mover. The presentation discusse...Read More

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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].