EVOLUTION OF MOTOROLA

A Legacy of Innovation: Timeline of Motorola History, 1928-2008 Since 1928, Motorola has been committed to innovation in communications and electronics. Our company has achieved many milestones in its 75-year history. We pioneered mobile communications in the 1930s with car radios and public safety networks. We made the equipment that carried the first words from the moon in 1969. We led the communications revolution with the first commercial handheld cellular phone in 1983 and the first all-digital high-definition television (HDTV) technical standard in 1990. Today, as a global industry leader, excellence in innovation continues to shape the future of the Motorola brand.

1928: Founding of Company

On September 25, 1928, Paul V. Galvin and his brother, Joseph, incorporated Motorola's founding company the Galvin Manufacturing Corporation in Chicago.

1928: Battery Eliminator

Galvin Manufacturing Corporation's first product was a 1928 battery eliminator. The device allowed battery-powered radios to run on standard household electric current.

1930: First Motorola Brand Car Radio

In 1930 Galvin Manufacturing Corporation introduced the Motorola radio, one of the first commercially successful car radios. Company founder Paul V. Galvin created the brand name Motorola for the car radio linking
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"motor" (for motorcar) with "ola" (which implied sound). Thus the Motorola brand meant sound in motion.

1936: Police Cruiser Radio Receiver

In 1936 Galvin Manufacturing Corporation introduced the Motorola Police Cruiser radio receiver, a one-way car radio designed to receive police broadcasts. The heavy-duty radio was tuned to a single frequency specified by the customer.

1940: Handie-Talkie SCR536 Radio

In 1940 Galvin Manufacturing Corporation (later Motorola) engineers developed the Handie-Talkie SCR536 AM portable two-way radio. This handheld radio became an icon on World War II battlefronts.

1941: First Motorola Commercial FM Two-Way Radio System

Galvin Manufacturing Corporation introduced its first commercial line of Motorola FM vehicular two-way radio systems and equipment in 1941. The first Motorola FM system was installed in Philadelphia, Pennsylvania, U.S.A.

1943: First Motorola Public Stock Offering

Galvin Manufacturing Corporation sold its first Motorola public stock in 1943 for US$8.50 per share.

1943: World's First FM Portable Two-Way Radio

In 1943, Galvin Manufacturing Corporation (later Motorola) designed the world's first FM portable two-way radio, the SCR300 backpack model, for the U.S. Army Signal Corps. Weighing 35 pounds, the "walkie-talkie" radio had a range of 10 to 20 miles (16-32 kilometers).

1946: Car Radiotelephone

On October 2, 1946, Motorola communications equipment carried the first calls on Illinois Bell Telephone Company's new car radiotelephone service in Chicago.

1947: Company Name Change

In 1947 Galvin Manufacturing Corporation became Motorola, Inc.

1947: Motorola's First TV

Motorola's first television, the 1947 Golden View model, was affordable and popular. More than 100,000 units sold in one year.

1955: First Commercial High-Power Transistor

A 1955 Motorola germanium transistor for car radios was the world's first commercial high-power transistor. It was also Motorola's first massproduced semiconductor.

1955: Stylized "M" Motorola Logo

In June 1955 Motorola introduced a new brand logo, the stylized "M" insignia, or "emsignia." A company leader said the two aspiring triangle peaks arching into an abstracted 'M' typified the progressive leadershipminded outlook of the company.

1956: Robert W. Galvin, President

Robert W. Galvin, son of company founder Paul V. Galvin, became president of Motorola, Inc. in 1956.

1958: Motrac Vehicular Two-Way Radio

In 1958 Motorola introduced the Motrac radio, the world's first vehicular two-way radio with a fully transistorized power supply and receiver. Its low power use enabled the radio to transmit without running the vehicle's engine.

1963: World's First Truly Rectangular Color TV Tube

In 1963 Motorola introduced the world's first truly rectangular color TV picture tube. The tube, developed in a joint venture with National Video Corporation, quickly became the industry standard.

1969: First Words From the Moon

A Motorola radio transponder relayed the first words from the moon to Earth in July 1969. The transponder aboard the Apollo 11 lunar module transmitted telemetry, tracking, voice communications and television signals between Earth and the moon.

1973: Prototype DynaTAC Portable Cellular System

By 1973 Motorola demonstrated a prototype design for the DynaTAC (DYNamic Adaptive Total Area Coverage) portable radiotelephone cellular system. A low-power handset was a fundamental element of the system.

1983: World's First Commercial Portable Cellular Phone

The world's first commercial handheld cellular phone, the Motorola DynaTAC phone, received approval from the U.S. Federal Communications Commission in 1983. The 28-ounce (794-gram) phone became available to consumers in 1984.

1986: Six Sigma Quality Process

Motorola invented the Six Sigma quality improvement process in 1986. Six Sigma provided a common worldwide language for measuring quality and became a global standard.

1990: First HDTV Technical Standard

In 1990 a Motorola business then known as General Instrument Corporation proposed the first all-digital high-definition television (HDTV) technical standard.

1991: First GSM Cellular System

Motorola demonstrated the world's first working-prototype digital cellular system and phones using the GSM (Global System for Mobile Communications) standard in Hanover, Germany, in 1991.

1994: iDEN Digital Radio

In 1994 Motorola introduced iDEN digital radio, the world's first commercial digital radio system that combined paging, data and cellular communications, and voice dispatch in a single radio network and handset.

1995: World's First Two-Way Pager

In 1995 Motorola introduced the world's first two-way pager, the Tango two-way personal messaging pager. It allowed users to receive text messages and e-mail, and reply with a standard response. It also could be connected to a computer to download long messages.

1996: StarTAC Wearable Phone

When introduced in 1996, Motorola's StarTAC wearable cellular telephone was the world's smallest and lightest. It weighed just 3.1 ounces (88 grams).

1999: iDEN i1000plus Handset

Introduced in 1999, Motorola's iDEN i1000plus handset was the world's first to combine a digital phone, two-way radio, alphanumeric pager, Internet micro browser, e-mail, fax and two-way messaging.

2000: World's First GPRS Cellular System

In June 2000, Motorola and Cisco Systems, Inc. supplied the world's first commercial General Packet Radio Service (GPRS) cellular network to BT Cell net in the United Kingdom. The system also used the world's first GPRS cellular phone, the Motorola Time port P7389i model.

2000: Mission-Critical Wireless Data

In 2000 Motorola tested the world's first 700 MHz wideband high-speed data system for public safety users, enabling advanced missioncritical solutions. Police, fire and EMS services deployed the trial system in Pinellas County, Florida, in 2001.

2002: Worlds First Wireless Cable Modem Gateway

In 2002 Motorolas SURFboardAE SBG1000 cable modem gateway was the worlds first to combine a high-speed cable modem router with an ethernet switch and wireless home gateway. It enabled cable TV subscribers to use their cable connection to share Internet access and to network multiple computers wirelessly.

2003: A760 Cellular Phone

Introduced in 2003, the Motorola A760 cellular phone was the world's first handset to combine a Linux operating system and Java technology with full PDA functionality.

2004: MOTORAZR V3 Cellular Phone

In 2004 Motorola introduced the RAZR V3 cellular phone, an ultraslim, metal-clad, quad-band flip phone. The 13.9mm thin phone used aircraft-grade aluminum to achieve several design and engineering innovations, including a nickel-plated keypad.

2005: MOTOMESH Broadband Radio Network

In 2005 Motorola's MOTOMESH wireless mobile network was one of the first multiradio mesh networks to combine 4.9 GHz licensed mobile broadband radios and unlicensed Wi-Fi radios into a single access point. Mesh networking allowed public safety users to rapidly create a network of wireless devices linked in a relay system.

2006: Motorola MING Smart Phone

Motorola introduced the MING touch screen smart phone in Asia in 2006. It used advanced handwriting software to recognize more than 10,000 handwritten characters of the Chinese alphabet.

2007: Symbol Technologies, Inc.

Motorola and Symbol Technologies, Inc. merged in 2007 to provide products and systems for enterprise mobility solutions, including rugged mobile computing, advanced data capture and radio frequency identification (RFID).

2007: Best Corporate Citizen Award

Motorola ranked fourth among America's 100 Best Corporate Citizens, published by CRO magazine for performance in governance, environment, community and employment practices. The 2007 ranking marked the second year in a row that Motorola earned the fourth spot on the list and the fourth time that Motorola appeared in the top 10.

2007: World's First WiMAX 802.16e Mobile Handoffs

Motorola demonstrated the world's first WiMAX 802.16e mobile handoffs in downtown Chicago on September 26, 2007. Users experienced live Web browsing and video streaming sessions on wireless computers while traveling in the city.

2008: Gregory Q. Brown, CEO

On January 1, 2008, Gregory Q. Brown became chief executive officer of Motorola, Inc

BUSINESS PLAN OF MOTOROLA

History Motorola started as Galvin Manufacturing Corporation in 1928. The name Motorola was adopted in 1947. Motorola is the 1st company that introduced the cell phones in the market, in 1983. Many of Motorola's products have been radio-related, starting with a battery eliminator for radios. The company is also strong in semiconductor technology.

Products and services Cell phones Laptops Radio communication devices Cell phones devices Camera

In 1986, Motorola came in India. In India, Motorola has 2nd rank in mobile market. The market share of Motorola is near about 18%. The target audience of Motorola is youth of India. In India, Motorola offers world-class mobile phones to satisfy the needs of all segments of the market. In India they are offering the smallest and the lightest GSM handset in market.

Marketing Objective

Motorola wants to achieve following marketing objectives these are following: To Launch 26 new handsets at the end of 2008 6 for CDMA, 13 for GSM, 3 for UMTS, 4 for iDEN (RAZR family). Expanded distribution networks in China and India Getting the 1st rank in 2010 Increase the Sales volume Increase the market share Increase the profit

Communication Objective The Communication Objective of Motorola is to improve brand image and awareness. Also creating brand recall in customers mind through color, logo and its promotional program. So the people enhance to buy the product. For achieving this objective Motorola using some tools of marketing. These are following Electronic Media Print Media Internet Marketing Public Relation Branding Sales Promotion Targeting Strategy The target market of Motorola is Urban and Rural area. The target audience of Motorola is youth. Price Slim and Stylish Fashionable and Light Weight Innovative technology handsets

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 Positioning Strategy Positioning is the process by which marketers try to create an image or identity in the minds of their target market through Logo and color of the Brand. So Motorola positioned its product Positioning strategy on the basis of its logo, color and tagline. The tagline of Motorola is Hello Moto and Intelligence Everywhere. Also Motorola positioned it self as a customer centric company

PEST Analysis Political Taxation policy Government policy Economic Launch low cost handset in rural areas Launch economy related brand Launch power full brand in the market so customer make good image in their mind. Social Give good quality to their customer Providing offers to its retailer and customer Providing life style product Change the consumer attitudes and opinions Technological Provide new innovative product to their customer Develop the competing technology

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 Provide new technology to their workers

SWOT Analysis Strength Globally number 2 Worldwide operation Wide portfolio of products Weakness Less Penetration Less Resale Value Battery backup Opportunity Wide and growing market Benefit of wide range of brands Enhance its CDMA category Threat Nokia and other competitors New technology Buying behaviour of consumers

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 CDMA technology

Decision Making Process In decision making process most of the time family playing a big role in decision-making process. As Motorola find that in low or medium range family not involved but in high range family changed the decision. Motorola also find that in rural areas most of the time head of the family take the decision not the user of the product but in urban areas mostly users take the decision not family members. So Motorola launched many ranges of the mobiles for tapping this segment. Pricing Decision Price decision always depends on the product class. Customers always think that higher price product having high quality, and lower price product reflects bargaining condition. So Motorola positioned its products price on the basis of technology, style and also requirement or need of the customer. Motorola mainly emphasis on those models that capture the market share in semi-urban and rural markets. For example: - Motorola launched Rs. 1200 handset.

Competitive strategy The market of mobile is highly competitive. There are many players capturing the market. So it is very tough to attract the customer. So Motorola provide innovative products to the market. Launched a phone costing Rs.1200. Launched MOTOFLIP costing under Rs.4000.

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Widen their product portfolio. Collaborated with telecom service provider. Enhanced their distribution network. Target Audience - Youth

MANAGEMENT OF MOBILE PHONE

Motorola learned about quality the hard way: by being consistently beaten in the competitive marketplace. When a Japanese firm took over a Motorola factory that manufactured television sets in the United States, they promptly set about making drastic changes in the way the factory operated. Under Japanese management, the factory was soon producing TV sets with 1/20th the number of defects they had produced under Motorola management. In the late 1970s and early 1980s the company responded to the competitive pressure by engaging in a publicity campaign decrying "unfair" competition and calling for political protection solutions. Finally, even Motorola's own executives had to admit "our quality stinks," (Main, 1994) and Motorola decided to take quality seriously. Motorola's CEO at the time, Bob Galvin, started the company on the quality path and became a business icon largely as a result of what he accomplished in quality at Motorola. Today, Motorola is known worldwide as a quality leader. To accomplish its quality and total customer satisfaction goals, Motorola concentrates on several key operational initiatives. At the top of the list is "Six Sigma Quality," a statistical measure of variation from a desired result. In concrete terms, Six Sigma translates into a target of no more than 3.4 defects per million products, customer services included. At the manufacturing end, this requires "robust designs" that accommodate reasonable variation in component parts while providing consistently uniform final products. Motorola employees record the defects found in every function of the business, and statistical technologies are made a part of each and every employee's job. Reducing the "total cycle time"-the time from when a Motorola customer places an order until it is delivered-is another vital part of the company's quality initiatives. In fact, in the case of new products, Motorola's cycle-time reduction is even more ambitious; the clock starts ticking the moment the
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product is conceived. This calls for an examination of the total system, including design, manufacturing, marketing, and administration. Motorola management demonstrates its quality leadership in a variety of ways, including top-level meetings to review quality programs with results passed on through the organization. But all levels of the company are involved. Non-executive employees contribute directly through Motorola's Participative Management Program (PMP). Composed of employees who work in the same area or are assigned to achieve a specific aim, PMP teams meet often to assess progress toward meeting quality goals, to identify new initiatives, and to work on problems. To reward high quality work, savings that stem from team recommendations are shared. To ensure that employees have the skills necessary to achieve company objectives, Motorola spent in excess of $170 million on worker education between 1983 and 1987. About 40 percent of the worker training provided by the company is devoted to quality matters, ranging from general principles of quality improvement to designing for manufacturability. Motorola knows what levels of quality its products must achieve to top its competitors. Each of the firm's six major groups and sectors has benchmarking programs that analyze all aspects of a competitor's products to assess their manufacturability, reliability, manufacturing cost, and performance. Motorola has measured the products of some 125 companies against its own standards, verifying that many Motorola products rank as best in their class. Motorola acknowledges that they made many mistakes. One of the most serious was to start the training for quality at the bottom of the company. Many workers were unable to understand statistical process controls and other techniques without remedial education, and they couldn't turn to their untrained bosses for help. Even those who understood the concepts completely were not able to apply them in the unreceptive workplace. Motorola's director of training and education estimates that Motorola wasted $7 million trying to train from the bottom up. Recognizing their mistake, the company established "Motorola University" and put thousands of Motorola executives through executive training. Bob Galvin himself spent time in the classroom. By 1992 the company was spending $110 million per year on instruction. As a result of these efforts, Motorola can now perform such feats as building pagers and cell phones in lots ranging from one unit to 100,000. Through mass customization the factory can fill a precise order within minutes of
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receiving it. Thanks in large part to its six-sigma activities, the company dominates such key high-tech industries as pagers, cell phones, and mobile communications, and is a significant force in many others.

BRAND AWARENESS & PREFERENCE AMOUNG YOUTH

MARKET SHARE 2005-06 Nokia Motorola Samsung LG Sony Ericsson Siemens Others 36% 18% 13 % 7% 6% 5% 15%

MOTOROLA vs. NOKIA

Motorola Category Tag line Range of low cost Handset Battery backup User friendly Resell value Mobile Hello moto Rs 1200 2.5-8hrs Not much friendly Low

Nokia Mobile Connecting people Rs 1350 2-6hrs Much easier Higher

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Market share

18%

36%

SURVEY ON MOTOROLA
1) Which brand of mobile do you possess?

9% 25% 53% 13%

nokia motorola sony ericsson samsung

2) Which brand according to you is the best?

13% 19% 46%

22%

nokia motorola sony ericson samsung

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3) If you have a Motorola mobile, which feature do you like?

10% 10%

0% m usic cam era battery life 50% body other

30%

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ANNUAL TURNOVER
In 2005, Motorola's RAZR line sold over a 110 million units and pushed the company to the number 2 Rank in mobile phone slot.Motorola's handset division recorded a loss of $1.2 billion in the fourth quarter of 2007, while the company as a whole earned $100 million during that quarter. It lost several key executives to rivals and the web site Trusted Reviews has called the company's products repetitive and uninnovative. Motorola laid off 3,500 workers in January 2008, followed by a further 4,000 job cuts in June and another 20% cut of its research division a few days later. In July 2008, a large number of executives left Motorola to work on Apple's iphones. Facing bankruptcy, the company has been put on offer for sale to several other major rivals such as Samsung Electronics, LG Electronics and Sony Ericsson, yet all have rejected the offer. In July 2008, analyst Mark McKechnie from American Technology Research said that Motorola "would be lucky to fetch $500 million" for selling its handset business and analyst Richard Windsor said that Motorola might have to pay someone to take the division off the company and that the company may even exit the handset market altogether. Its global market share has been on the decline; from 18.4% of the market in 2007, it had a share of just 9.7% by 2008.

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CONCLUSION

The Galvin Manufacturing Corporation in Chicago has matured and highly developed to become the now seen Motorola Inc. The evolution of Motorola has been fast. Motorola is currently one of the leading cell phone companies of the world and is still progressing. Though, in India the leading mobile company is considered to be Nokia, Motorola is gaining in the race. Motorola is launching new handsets providing the latest features. Celebrities are seen endorsing the product to increase the sales of the company. As the target audience of Motorola is the youth, the company creates new and improved cell phones that satisfy the needs of todays generation. The companys motto speaks for itself, Our history is rich. Our future is dynamic. We are Motorola and the spirit of invention is what drives us.

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BIBLIOGRAPHY
Websites
www.slideshare.net www.motorola.com www.wikipedia.com www.qualityamerica.com

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ANNEXURE

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