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Management 1

MANAGEMENT CAPSTONE

Management - Capstone
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15th December, 2013

Management 1
Introduction
Under the various religious systems that exist, various belief structures have evolved
over a period of time. Such belief structures have crept into the latest the communication
technology has to offer mobile telephony also. Customers tend to satisfy their needs on the
basis of the intensity or requirement of the needs. Needs are general in nature but wants arise
out of the desire to fulfill needs in a specific way. Wants that are conditioned by certain
motives are known as a buying motive (Kotler, 1972). Hence, marketers must work to create
these wants in the customers and target or position their product in such a way as to invoke
desire in the customer to fulfill these wants (Andrew C. Gross et al, 1998). People acquire
beliefs and attitudes through experience as well as learning. The beliefs and attitudes held by
people, in turn, influence their buying behavior (ICMR - ICFAI Center for Management
Research, 2004).
People insist on picking up connections based on the numbers. Some feel that if the
sum of the digits of their telephone number adds to one number, it is bound to bring luck to
them. Another such belief is a specific number sequence appearing in the telephone number
or a single digit appearing numerous times in the sequence of a telephone number to an
unemotional management approach. This might seek like a superstition but it can also be
viewed as a specific belief system that is opening new avenues for revenue generation for the
mobile operators. It is discovered that the customers are paying huge sums of money and are
waiting up to six months to acquire a specific lucky numbers. The same is the case with
China too. The beliefs in certain superstitions that consumers hold are becoming to have an
effect on their consumption. For instance, in the Asian cultures, specifically China, people are
very superstitious about numbers that are divided into lucky and unlucky numbers (Li, 2007).
This has affected the consumers to a point where the numbers play a vital role when it comes
to making a decision on setting a date for a wedding, number plates for cars, and even mobile

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phone numbers. According to recent studies, the superstitious outlook on numbers has set a
trend in the Chinese culture (Li, 2007). This is offering a huge new market opportunity for
the sales and marketing teams. It has been observed that sales personnel on the field are
charging premium on the numbers almost on the spur of the moment. This is happening
because there is no clear policy guideline or regulation that is overseeing this particular belief
system. Hence, this opportunity is offering almost unlimited market opportunity.
This paper analyzes the mobile industry with reference to Motorola Mobility in terms
of a variety of strategic aspects like Industry analysis, SWOT Analysis, Porters Five Forces
Analysis, among others.
Company Overview
Motorola is an 85 year old company and was incorporated in the year 1928. Motorola
actually was established as a battery eliminator company and was initially name as Galvin
Manufacturing Corporation (Motorola Solutions, 2012). Paul V. Galvin and Joseph Galvin
are the founders of this company. The name Motorola typically means Motor (Car) + Ola
(Sound) = Motorola (Car Radio!). The company today offers a variety of products that
predominantly belong to the communication technology industry vertical. The products of
the company include Mobile Phones, Tablets, Baby monitors, Software and applications,
Modems, Accessories, and phones both corded and cordless. Majority of the products that
the company offers are based on wireless technology. The primary market that Motorola has
been serving since its inception was the public safety market (Motorola Solutions, 2012).
Mission, Vision, and Primary stakeholders. The mission of Motorola is a
global communications leader powered by a passion to invent and an unceasing commitment
to advance the way the world connects. Our communication solutions allow people,
businesses and governments to be more connected and more mobile (Motorola, 2013)." The

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vision of the company is "Our history is rich. Our future is dynamic. We are Motorola and
the spirit of invention is what drives us (Motorola, 2013)." The primary stakeholders of the
company are its employees, customers, shareholders, and suppliers.
The company, which is proud of its rich legacy and history, even today carries this
legacy forward in a number of ways and predominantly through innovation. It is claimed by
the company that the driving force behind the company is its spirit of invention. The richness
and legacy of the companys history is because of invention.
Motorola offers a variety of solutions through its products both to the Corporate as
well as the Government. Motorola specializes in technologies like converged voice and day
and also wireless IP networks. Motorola also offers cross industry solutions. , the company
is technologically strong though. Though the competitors of Motorola, Cricket Wireless and
T-Mobile are financial in a better position in terms of finances, they do not enjoy the same in
terms of technology.
Globalization has certainly many impacts on the company due to the fact that there
are newer competitors like Apple etc., as these new companies were taking advantage of the
newer technologies (Evas, 2011). However, this resulted in providing access to emerging
markets like Asia. Numerous acquisition plans were aligned to globalization. Benchmarking
analysis is an endeavor that helps an organization perform better financially as well as
operationally.
Benchmarking analysis of Motorola revealed the company goes beyond direct
competition in the manner that it minimizes complexity and disruption and also have become
pioneers in emerging technologies. Motorola is one company that adapts very quickly to
newer technologies. As far as the operations and processes of Motorola are concerned, it is
evident that they are the pioneers in their respective field and they also retain the first mover

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advantage. The company also enjoys high levels of customer intimacy and also the customer
satisfaction levels are extremely high. Learning, at Motorola, is an internalized and also an
incessant process. Motorola, basically is a well-established brand and also renowned globally
for its R&D. Motorola as a brand is an accepted name in all sectors of operations and
solutions.
Porters Five Forces Analysis
Threat of new entrants The cost of technology have sufficiently come down and
availability of finance has sufficiently gone up and finally governments across the globe are
opening up this particular sector thereby reducing and lowering entry barriers.
Bargaining power of buyers As the number of players offering service in one particular
geography goes up, the service differentiators are reducing thus actually commoditizing
telecom services. Thus, the bargaining power of the consumer is increasing.
Bargaining power of suppliers Despite the fact that the number of service providers is
increasing, the backward supply chain players is not widening as rapidly, thereby narrowing
down the choice of suppliers for the telecom service providers. Hence, the bargaining power
of suppliers is also increasing.
The rivalry among existing players There is an intense rivalry among the existing players
and a constant one-upmanship amongst the existing players. So, there is actually very limited
collective bargaining power they have towards governments.
The threat of substitute products As on today, amongst the various communication
technologies available, there is no technological solution close enough to form a threat for
the mobile industry.

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In addition to the various aspects discussed above, there is an immense opportunity
available surely with respect to beliefs or superstitions.
While there are official systems for choosing preferred numbers, there seems to be no
formal mechanisms in place to monitor unscrupulous sales personnel on field. Organizations
must be very clear on what are these fancy numbers available or likely to be available soon
and fix a transparent pricing mechanism and make it public. This will avoid exploitation of
unsuspecting consumers. Some of the numbers in very high demand must be auctioned.
Probably, taking this innovation further would be to establish active working relationships
between mobile telephony operators and numerologists to advise consumers their
lucky numbers thereby creating an additional stream of revenue for the operators.
SWOT Analysis
Strengths
1. There is almost an infinite demand for the services provided in the mobile phone
industry and Motorola, being part of this industry, certainly owns this strength
2. Technology has reached a level of saturation and thereby rapid enhancements are
not visible in the near future. The technology is stable and Motorola is constantly
expanding in terms of technology.
3. The major technological advantages of Motorola are that it offers the latest cell
phone accessories, and have the first mover advantage with respect to CDM. It is
just that the company needs to retain and build on this particular area of strength.
Weakness
1. There is no more of an element of surprise in this industry to offer to the
consumers.
2. Countless players in the market, for instance, competition for Motorola comes
from companies like AT& T, Cricket Wireless, among others.
3. It is a government controlled and intensely monitored industry.

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Opportunities
1. Since the technology is stable new entrants just need sufficient capital to enter in
to this business.
2. Because the demand is almost infinite globally, there is still sufficient space for
quite a few players to enter into this business.
Threats
1. Established players could actually form a cartel, either formal or informal, and
dictate the market scenario and market developments.
2. New players that could enter the market may not have sufficient capital to
boost appropriate market expansion to sustain all the players in the market.
Outlining a Strategy
Relationships are the main asset of the enterprise - not the machines that make the
products, the products themselves, or even the intellectual capital inherent in people, patents
or know-how, important though all these might be (Wolf, 1990; Wolf, 1990). Relationships
in business become weak if they are not continuously refreshed. Organizations should
always ensure to keep in touch with their customers even after the completion of the business
deal. Relationships depend on mutuality. Value must be shared for both supplier and
customer to benefit (R. Jonston, 1998; Jhonson, 2004; R. Jonston, 1998). One-sided attempts
to profit at the customer's expense are of no use.
An excellent strategy adopted by Motorola universally is the strong accent that they
place an emphasis on in maintaining excellent vendor relationships treating them like part of
the organization and ensuring that they play key roles in even R&D efforts.
Various Levels and Types of Strategies

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Organizationally, Motorola has always retained its first mover advantage, especially
in the CDM technology. They have a strong emphasis and matching investments into R&D
and have consistently maintained that. While this is true at global organization level, the
local sales managers of Motorola in all the countries that they operate in directly globally
adopt various field level strategies to ensure substantial market share is retained by the
company. A case in example is the Indian market the largest, the fastest expanding, the
cheapest and possibly the most advanced in terms of technology where Motorolas sales
managers rub shoulders with established brands like Nokia, Samsung, among others while
also facing competition from smaller unknown brands as well as the mobiles from Chinese
markets.
Communication Plan
Mass production, distribution and marketing of goods and services will give way to
mass customization of products and services, communication and various other aspects that
appeal to the customer, predominantly in the case of intangibles. There must sufficient and
novel value to be created for both supplier and customer to deserve interest by both the
parties involved.
Two Corporate Mechanisms
Organizations, as they grow stronger and larger, become more complex in
administration and management and hence require effective corporate mechanisms to be
designed and implemented to ensure full compliance with the legal systems in all the
countries of their presence. Motorola, a large telecom giant having its interest in many
aspects of telephony have developed effective corporate mechanisms, starting at the top. The
guidelines at the board level are indicative and dictate voluntary compliance and adherence
keeping in line with the highest code of ethics that the company is expected to follow. For

Management 8
instance, any director or his immediate family member is not expected to receive gifts that are
likely to influence the decision of the director in the business. Secondly, another important
guideline is that the code of conduct itself is not comprehensive nor does it cover every
aspect and situation and hence draws its attention to voluntary disclosure to the Chairman of
the ethics committee as and when a situation as such arises. These are two exemplary
corporate mechanisms that are in place in this behemoth organization.
Effectiveness of Leadership
Motorola has identified that its strong market position is primarily because of two
factors namely, first mover advantage, and strong R&D. They make all efforts consistently in
line with these two predominant characteristics of their business and ensure that they always
lead and be ahead of the competition on these two dimensions.
Responsible Corporate Citizen
Motorola, true to its size and stature, have many a time voluntarily risen to the needs
of the local communities that they operate in. It is very important and relevant to mention
that they were the first company to have mobile recycling policy to reduce environmental
contamination by the heavy metals that are used in the manufacture of hand phones by
facilitating collection of used hand phone batteries and even hand phones and ensure
scientific recycling mechanisms. This shows the inclination of the organization to not only
take leadership position in terms of creating better and newer technologies but also being
responsible corporate citizens.

Conclusion

Management 9
In todays global business environment, most of the companies are attempting to
manage their business strategy in line with their operational delivery. The need of the hour in
todays business world is to develop strategies in such a way that they payback in terms of
competitive advantage along with cost reduction.
A firm that offers the consumer the same value as the competitors, but at a lower cost
is said to possess cost advantage, whereas a company that offers superior value to its
customers when compared to its competitors, possesses differentiation advantage. These two
advantages are called positional advantages as they represent the firms leading capability in
the industry in either of these advantages.
Additionally, analyzing the customer segments, the competitive environment, and
internal performance should be a continuous process for an organization. A company that can
develop an effective and efficient competitive intelligence system will always succeed in
handling the competition to its advantage (Mullins, 1999). With this kind of scenario in the
market, it is recommended that mobile phone operators consider the above mentioned
recommendations and streamline the pricing mechanisms in order achieve competitive
advantage.

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