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Turnaround of Motorola Mobility Strategy Management –II Project
Submitted by: Adig (14P125) Harish Reddy (14P140) PrathihasthRekabu (14P155) PriyaJadwani (14P156) VeenuTrehan (14P177) Vikramaditya (14P178)
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Acknowledgement We would like to express our indebtedness and profound gratitude to Prof. Ankur Roy, who has been a source of constant motivation and a guiding factor throughout the project work. It has been an immense pleasure for us to get an opportunity to work under him and complete the project successfully.It has also helped us to learn about various concepts and strategic principles that enable companies to stage a turnaround, which is a management marvel of sorts.
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Executive Summary Motorola Mobility is an American firm; it was …show more content…
This merger has really challenged Samsung of its dominance in the global smartphone market, especially in the emerging markets such as India and others. For the entire time Motorola was a part of a merger with Google, many had believed that the company was to be a lost cause. But in 2014 the company was about to double its sales and post profits when Google decided to sell off Motorola to Lenovo. The way Lenovo handled the design division of Motorola with only a limited influence on it and its strategy to undercut its competitors on price with Motorola really tasted huge success and the tables turned around for Motorola big time and it is back as a significant player again in the global mobile market space. History of Motorola: In January 2011, Motorola Inc. got split into two publicly traded companies: Motorola Solutions Motorola Mobility Motorola Solutions took on the company's enterprise-oriented business units, whereas the remaining consumer division had spun off to form Motorola Mobility. The Motorola Mobility included the Mobile Devices business, that produced smartphones, and Home business, which had produced set-top boxes, end to end video solutions, and also cable …show more content…
Crisis Phase I (1999 – 2003):- Chris Galvin was the CEO of Motorola during 1997 – 2003. During his period Iridium proved to be expensive. Iridium announced bankruptcy in 1999 and sold off the bits for $25 million whereas Motorola invested $2.6 billion and large number of engineer hours into a $5 billion consortium to develop iridium satellite system. Various other events like tech & telecom crash, 2001 World Exchange Center assaults, and the 2002 SARS alarm led to the decline in sales of the company. In 2001 calendar year alone, Motorola's incomes dropped by almost $8 billion, to $30 billion; its losses were around $4 billion. Chris launched the new digital ready phone “Razr”. But before Chris’s efforts on Razr were starting to pay off, He was asked by the board to leave the position of CEO of Motorola. In the first week of January 2004 Chris left Motorola. Mr. Ed Zander was made the new CEO of the company after Chris Galvin’s departure.Three months after Chris Galvin left Motorola, the organization's numbers started to pivot drastically. The Razr turned out to be a beast hit, with 50 million offering in its initial two years available.At the end of 2004, Motorola’s market capitalization (marketvalue of its outstanding shares) hit $42 billion. And the individual celebrating “Razr’s Success” was Galvin’s replacement, Ed Zander. Crisis Phase II (2005 – 2008):-
Turnaround of Motorola Mobility Strategy Management –II Project
Submitted by: Adig (14P125) Harish Reddy (14P140) PrathihasthRekabu (14P155) PriyaJadwani (14P156) VeenuTrehan (14P177) Vikramaditya (14P178)
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Acknowledgement We would like to express our indebtedness and profound gratitude to Prof. Ankur Roy, who has been a source of constant motivation and a guiding factor throughout the project work. It has been an immense pleasure for us to get an opportunity to work under him and complete the project successfully.It has also helped us to learn about various concepts and strategic principles that enable companies to stage a turnaround, which is a management marvel of sorts.
3
Executive Summary Motorola Mobility is an American firm; it was …show more content…
This merger has really challenged Samsung of its dominance in the global smartphone market, especially in the emerging markets such as India and others. For the entire time Motorola was a part of a merger with Google, many had believed that the company was to be a lost cause. But in 2014 the company was about to double its sales and post profits when Google decided to sell off Motorola to Lenovo. The way Lenovo handled the design division of Motorola with only a limited influence on it and its strategy to undercut its competitors on price with Motorola really tasted huge success and the tables turned around for Motorola big time and it is back as a significant player again in the global mobile market space. History of Motorola: In January 2011, Motorola Inc. got split into two publicly traded companies: Motorola Solutions Motorola Mobility Motorola Solutions took on the company's enterprise-oriented business units, whereas the remaining consumer division had spun off to form Motorola Mobility. The Motorola Mobility included the Mobile Devices business, that produced smartphones, and Home business, which had produced set-top boxes, end to end video solutions, and also cable …show more content…
Crisis Phase I (1999 – 2003):- Chris Galvin was the CEO of Motorola during 1997 – 2003. During his period Iridium proved to be expensive. Iridium announced bankruptcy in 1999 and sold off the bits for $25 million whereas Motorola invested $2.6 billion and large number of engineer hours into a $5 billion consortium to develop iridium satellite system. Various other events like tech & telecom crash, 2001 World Exchange Center assaults, and the 2002 SARS alarm led to the decline in sales of the company. In 2001 calendar year alone, Motorola's incomes dropped by almost $8 billion, to $30 billion; its losses were around $4 billion. Chris launched the new digital ready phone “Razr”. But before Chris’s efforts on Razr were starting to pay off, He was asked by the board to leave the position of CEO of Motorola. In the first week of January 2004 Chris left Motorola. Mr. Ed Zander was made the new CEO of the company after Chris Galvin’s departure.Three months after Chris Galvin left Motorola, the organization's numbers started to pivot drastically. The Razr turned out to be a beast hit, with 50 million offering in its initial two years available.At the end of 2004, Motorola’s market capitalization (marketvalue of its outstanding shares) hit $42 billion. And the individual celebrating “Razr’s Success” was Galvin’s replacement, Ed Zander. Crisis Phase II (2005 – 2008):-