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Components of Motorola’s international strategy
A strategy signifies the continuing programs of an organization with the aim of having an anticipated outlook of potential plans. The success of a strategy lies in its application to the fullest aptitude. The fundamental components of the global strategy of Motorola include the extent of functions, deployment of resources, unique proficiency, and synergy.
The extent of functions for Motorola or its area of carrying out business can be described geographically as an international operation. With respect to the way it distributes resources, Motorola changed strategy, which meant leaving given areas of operation and focus on other unexplored areas like making microchips among other products. The company has as well dedicated substantial resources to research and development (R&D) and innovative product advancement.
The unique proficiency of Motorola revolves about its dedication to quality. Motorola has a practice of standing as a first mover in the expertise arena. The company does not just manufacture WiMax chip, but also manufactures phones and other merchandise that apply the WiMax technology. The novelty of Motorola permitted the company to achieve a competitive advantage on the cellular phones and pagers by advancing in R&D to assist the technology. Lastly, Motorola is capable of realizing synergy in its functions as the diverse components of its actions benefit others.
The drawback that Motorola encounters is being satisfied with its achievement, and this permits other aggressive expertise Japanese companies to achieve a competitive advantage. The expected strategy for Motorola is to generate a chance to take back the company to its previous profitability rank. Its intention is to make tactical attempts to comprehend the requirements of clients in a better way as it embarks on improving the quality of products and slicing cycle times.
Motorola’s arrival at its present strategy because of a SWOT analysis
Before getting to the idea of strategies, a firm ought to carry out a SWOT analysis, just as Motorola did. An excellent SWOT analysis provides the foundation for policy development, which permits a company to take advantage of its strengths and opportunities, reduce the effect of weaknesses, and curtail threats. Obviously, Motorola recognized the Japanese companies as a threat in the early 1980s.
However, Motorola managed to curtail this threat and made good use of its opportunities in the international market. Motorola at that moment was weak in the regions of product quality and costs, but outstanding elements of management, research, and development were capable of reducing the effect of the weaknesses coupled with turning the company around.
Motorola as well carried out its SWOT analysis anchored in the market knowledge. As its strength, Motorola is among the leading companies in the world along its line of operations. Motorola is a creator of expertise and has the first-mover benefit. Motorola is powerfully dedicated to conveying client contentment, constant advancement, and establishing new standards of excellence via its achievement of the Six Sigma Quality advancement course; a systematic and arithmetic advance issued to better the quality of its products and eradicate defects.
With respect to its weaknesses, Motorola upheld old ways of doing business by being conformist and hence failed to compete with rising international companies assertively, which seized the opportunity to achieve a competitive advantage. When Motorola was conscious of its strengths, weaknesses, opportunities, and threats, it was easy to establish its status in the market and regain its reputation.
Primary business strategy
Differentiation underscores the company’s chief business approach. In this regard, Motorola is dedicated to unique products, which are different from the ones of its competitors on the foundation of quality. Actually, the company presently has an excellent rate of 99.9997 percent. The differentiation strategy assisted Motorola to improve its product and make it comprehensible for clients to distinguish its brand and worked to increase sales and make sure that the company regains its market share through the attraction of new clients and regaining old clients.
The differentiation strategy applies where clients targeted by a company are not subject to prices and where the markets are competitive in an attempt to assist the company to gain competitive advantage. Additionally, Motorola has employed a differentiation strategy where the clients have particular needs since the strategy makes it easy for companies to achieve the needs of the clients found in diverse market sections.
The differentiation strategy offered Motorola numerous benefits, unlike the international strategy. The differentiation strategy enabled Motorola to battle with Japanese companies because of exceptional merchandise and brand. The international strategy employed by Motorola at first influenced profits negatively by reducing its sales between the year 2007 and the year 2009.
On the other hand, the differentiation strategy assisted Motorola to lower expenses and recover sales. Motorola will not be influenced negatively by the change of its executive leadership in future as through the differentiation strategy, it relies on its merchandise and brand attentiveness rather than the executive leadership. The differentiation strategy assisted Motorola to rise above its challenges, as well as threats, and will as well help the company exploit different opportunities that are available in the contemporary market.
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