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 discusses Motorola's business strategy, emphasizing goal integration, resource utilization, employee skill development, and quality standards using Six Sigma. It applies Porter’s Generic Competitive Strategies to Motorola, highlighting cost leadership, differentiation, and focus strategies. Specific innovations like foldable phones (Moto Razr) and Moto Z with Moto Mods are analyzed for their competitive advantage. The presentation evaluates Motorola's strategy using VRIO analysis, concluding that while Motorola faces steep competition, its unique technological innovations provide a competitive edge. The presentation also includes references to support the analysis. Desklib provides a platform to access more solved assignments and study resources.

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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