TOPIC: MOTOROLA –A COMPREHENSIVE REVIEW IN INDIA

SUBJECT : INTERNATIONAL BUSINESS

SUBMITTED BY:

C JAHNAVI,

07MBI024,

MBA-4TH BATCH.
ABSTRACT:

Telecom reforms was initiated in 1994, there were three incumbents in the fixed service
sector, namely DoT (Department of Telecom), MTNL and VSNL. Telecommunications
operators are facing challenges of growth, convergence, business transformation,
technological change and increasing regulation.

The continuing growth of the telecom industry seems to have become a key contributor to
India‟s progress. Today, there are about 500 million telecom subscribers with a net addition
of more than 11 million new mobile subscribers per month. There exists enormous business
potential for telecom companies on account of country‟s low teledensity, which currently
stands a bit above 42%.

Motorola, A US based company entered India, as it found India as one of the best market for
its products. It entered into joint ventures with many companies to enhance its potential and
market growth. It started Multiphase manufacturing strategy to enable the manufacturing of
its products in India. And as of now it holds 14% share in Indian telecom Industry.

Though Motorola is trying to acquire the highest market share it is still lagging behind due to
many reasons and few of them are complexity, software problems, non adaptability etc.
Although it has some setbacks Motorola is still playing well in the market field having
considerable share for itself.

KEYWORDS:

Motorola, telecom industry, joint venture, multiphase manufacture.

INTRODUCTION:

Motorola is a public limited company and was founded in september 25,1928. Its
headquarters is located in Schaumburg, Illinois, United States. It serves worldwide. Its
products are Mobile phones, Smart phones, Two-way radios, Networking systems, Cable
television systems, Wireless Broadband Networks, RFID Systems, Mobile Telephone
Infrastructure. Motorola is a leading provider of wireless communication devices, Enterprise
mobility solutions and end-to-end broadband systems for homes. Apart from being known for
their innovation and R&D facilities their robust manufacturing capabilities have made a mark
in the world‟s tech arena.
It has a strong global presence with centers in over 70 countries and is named as one of
America‟s Most Admired Companies by the fortune magazine.

The major chunk of its business is the mobile services segment, raking in over 52% of its net
sales. Although USA is its largest market about 65% of the segment‟s sales are outside the
US. Its endless list of customers includes the big names in the Telecommunication industry
such as Verizon, Sprint-nextel, Tmobile, China mobile, and Comcast. The company has
reported sales of $36.6 billion for 2007, a drop of about 15% from its 2006 sales, largely due
to its loss in the mobile devices segment. They are even looking at the developing WiMax
market which could be a huge cash generator for them in the future.

Currently the company is exploring ways to accelerate its mobile devices business and bring
it back on track as a profitable entity, they are even considering selling the entire division, the
final decision is yet to be made.

A LEGACY OF INNOVATION:

Since 1928, Motorola has been committed to innovation in communications and electronics.
Our company has achieved many milestones in its 80-plus 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

MOTOROLA IN INDIA:

Motorola has been present in India since 1987. It was one of the first telecom companies to
enter India and is headquartered out of Gurgaon, Haryana with sales offices in Delhi,
Mumbai and Bangalore, two VLSI design centers in Delhi and Noida and a Research &
Development Center in Bangalore and Hyderabad.

In India, the focus areas for the company include, wireless infrastructure, broadband
equipment, mobile handsets, trunking & two way radios, and software. Motorola has also set
up Motorola School of Communication Technology in India in partnership with Indian
Institute of Information Technology (IIIT), Hyderabad.
Motorola India already a leader in wireless and broadband communication is picking up the
market in cell phones. It is basically a US based company that because of the potential of
Indian market and buyers has established its branch here in 1987. Started at small scale at that
time, it has almost 1200 employees in Delhi, Bangalore and Hyderabad. Motorola India does
three businesses in India

1. Enterprise Mobility Solutions

2. Home & Network Mobility and

3. Mobile Devices.

They have a very well developed Research and Development team in India. Motorola India
electronic limited has 5 Research and Development centers at Bangalore and Hyderabad that
keep creating technology to give a cutting edge to the company. Motorola is first to launch
commercial GRPS network in Mumbai in the year 2002 and first again to establish WLL
based CDMA network in Madhya Pradesh is 1998. Motorola is not only after making money
but it helps a lot when people are really in need. Like it has donated a lot during Kashmir
Earthquake (2005), Tsunami Relief (2004) and Gujarat Earthquake (2201). The company also
has Motorola Software Group India that is engaged all the time in bringing something new. It
has developed wireless communication, CDMA, GSM phones, Digital Signal Processing
(DSP) et al. Motorola has recently launched Motorola Q9M with unique feature of new key
board layout. In India it has market share of 14% in the sales of handsets, which is second
only to Nokia

To further boost the sale Motorola has top five Indian carriers as Airtel, Hutch and BSNL
with it. To penetrate deep in the market Motorola has launched cell phones in India, which
are very trendy and at the same time with price range to suite different pockets. Motorola
mobiles in India are well-known these days. The prices of even the cell phone accessories and
other products by Motorola cater to wide variety of consumers. Motorola has repair centers
also that help you whenever you need to get your cell repaired. It is advisable to call the
particular repair center to know the exact procedure of the repair. The Company's profile
shows that it has never looked back and works according to the need and taste of the
consumers. Motorola has tied up with Tata Teleservices to promote and market three entry-
level handsets at Tata's retail outlets. The lower strata group is the target market. The
customers' queries are also handled online as well as the service centers present almost in all
the cities of the nation. Many reviews and ratings are done everyday that helps the consumer
and even company to develop further.

MOTOROLA GOES SLOW ON INDIA PLAN

Dwindling market share and a crippling economic downturn are forcing US-based mobile
handset maker Motorola to go slow on its India strategy. The company has considerably
reduced its advertising and is in the process of laying off its executives in the marketing and
communication division. Motorola, which used to be the second largest handset maker in the
country, is also not likely to launch many new products into the market.

According to company sources, top executives in the marketing team are already on their way
out. The handset business is being catered to by the sales head. Most of the marketing and
communication-related positions are being vacated. Because of the slowdown, the company
has considerably reduced its activities. It is probably going to use its international work or
campaign over the next few months.

MotorolaInc.
(MOT)

7.82USD 0.109 (1.37%)

On Nov 26

Motorola Inc. (NYSE:MOT) Delayed quote data

1d 5d 3m 6m 1y 2y 5y max

Last Trade: 7.82USD Day's Range: 7.81 - 7.88

Trade Time: Nov 26 52wk Range: 6.04 - 9.45

Change: 0.109 (1.37%) Volume: 7,418,198

Prev Close: 7.929 Avg Vol (3m): 30,851,800

Open: 7.83 Market Cap: 18.29B

Bid: N/A P/E (ttm): N/A

Ask: N/A EPS (ttm): -0.022

1y Target Est: 8.77 Div & Yield: N/A (N/A%)

MOTOROLA VENTURES INVESTS IN BLACKARROW

Collaboration will accelerate the adoption of advanced advertising platforms in multiple

markets.

Motorola Mobility, Inc., a subsidiary of Motorola, Inc., (NYSE:MOT), through its strategic
investment arm, Motorola Ventures announced an investment in BlackArrow, a leading
worldwide provider of advanced advertising solutions for New Television platforms.
Motorola‟s investment represents an extension of BlackArrow‟s previously announced Series
C funding. BlackArrow‟s advertising solutions address the fundamental shift in the way
television audiences now view their favorite programs. The increase in platforms, such as
video-on-demand (VoD), DVR, mobile devices andbroadband, provide consumers with
greater choice when it comes to when and where they watch their programs. These “New
TV” options create new opportunities and challenges for advertisers, television programmers
and content distributors alike. BlackArrow‟s technology enables new advertising and
business models for content that is increasingly viewed in an on-demand environment.

Motorola Ventures invests in companies that accelerate our business strategy and are integral
to our overall innovation efforts. Motorola‟s presence and leadership in the video content
delivery space will provide significant visibility for BlackArrow within their key markets.”

As part of this collaboration, the two companies will develop integrated addressable media
and advertising solutions for set-top boxes and mobile devices, as well as cloud-based, hosted
video services and IP video delivery. BlackArrow will use the additional capital from the
investment for new product development and worldwide deployment of their Advanced
Advertising System to networks and New TV content distributors. Motorola‟s reputation for
technological excellence, its rich and diverse product mix and its worldwide customer base
create a powerful opportunity to accelerate and drive scale, increasing the value around the
business of advanced advertising.

MOTOROLA ALLIANCE WITH TECH MAHINDRA

Tech Mahindra is an India-based services firm with deep expertise across a range of telecom
technologies including OSS/BSS, content, and applications integration. Motorola and Tech
Mahindra have created a joint venture company, called CanvasM, that will focus on creating
a service delivery and management framework that enables service providers to accelerate the
introduction of new services. CanvasM will utilize Motorola‟s Global Applications
Management Architecture (GAMA) service delivery platform to implement customized
applications developed by Tech Mahindra as well as Motorola‟s existing application
offerings around messaging, location-based services, entertainment, ecommerce, and
enterprise applications.

CanvasM will be headquartered in Noida, India, with R&D centers of excellence located in
Noida and Bangalore, India. Through the joint venture with Tech Mahindra, Motorola gains
access to more than 11,000 professional service experts and can leverage their expertise
around OSS and content to help wireless operators drive content-to-consumer services in the
mobility space. CanvasM‟s presence in Asia should complement Motorola‟s position in
wireless operator accounts in the region such as China Unicom, China Mobile, Maxis
(Malaysia), BSNL (India), and SingTel (Singapore).

MOTOROLA AND WIPRO TEAM ON MANAGED SERVICES

Wipro Technologies and Motorola have established a joint venture, called WMNetServ, to
deliver managed services. WMNetServ will focus on providing managed services around
planning, deployment, optimization, security, operations, and support. IDC expects spending
on managed services by network service providers to increase sharply over the next few
years. IDC expects competition to intensify in this market with vendors such as Ericsson,

Lucent, and Nokia having already established an early position in managed services.

For Motorola, the WMNetServ joint venture enables the company to better match resources
in the managed services space with key competitors like Lucent/Alcatel and Nokia/Siemens
that have gained scale and geographic breadth through acquisitions or merger.
acquisitions or merger.

PROS OF MOTOROLA'S SERVICES JOINT VENTURE STRATEGY:

1)Gain technical expertise to drive business in key service areas without the cost of

developing or acquiring intellectual capital

2)Gain scale to match competitors with more significant services resources due to

M&A activity

3)Help establish services credibility in emerging wireless technologies without

disrupting Motorola‟s current services operations

4)Bolster regional presence in Asia

CONS OF MOTOROLA'S SERVICES JOINT VENTURE STRATEGY

1)Potential overlap in key areas like managed security services

2)Strategy for sales alignment not yet fully developed

MOTOROLA TO MAKE HANDSET IN INDIA

Motorola’s multiphase manufacturing strategy for India:

Motorola soon make available a handset sporting a "made in India" tag and hinted at
potentially more manufacturing work to come to India. The company said that Indian-made
Motorola C115 phones, handsets that are already on the market but manufactured elsewhere.

Motorola ruled out plans to manufacture equipment in India, adding that the company would
only consider manufacturing in India if Motorola's sales volumes take off there. Motorola
might look at some "back-end assembly" in India, as opposed to the full manufacture of
products.

Motorola assemble the C115 mobile handset in India, as a first step in "a multi-phase
manufacturing strategy being deployed by Motorola in India
CHANNEL PARTNER EXPERTISE AND MOTOROLA TECHNOLOGY — A
WINNING COMBINATION

Motorola's Channel Partner Programs are predicated on the belief that our channel partners
expertise and offerings combined with Motorola's technology and support present a winning
combination to deliver solutions to our customers.

A key goal in Motorola's channel partner programs is to align Motorola with channel partners
who have market and technical expertise in the markets that we serve. To this end Motorola's
programs are designed to attract and support channel partners with expertise in different
technologies and markets.

Motorola channel partner programs offer several benefits:

• Access to world class technical support for both pre and post sale

• Premier marketing programs

• Product sales and technical training

• Personnel certification

• Access to a broad portfolio of products and solutions

MOTOROLA CHANNEL PARTNER ECOSYSTEM

Our channel ecosystem is composed of distributors, resellers, alliances, independent software

vendors, and manufacturer representatives.
MOTOROLA VS NOKIA

Motorola and Nokia had entered the Indian market almost at the same time but Motorola
failed to gain as much as success as Nokia had. The main reason of it is that Motorola mobile
phones do not has the „easy to use‟ quality. Motorola hand sets are used by most of the
educated people as they are not easy to be used by the uneducated people. Motorola has a
large variety of models that are available in the Indian market from 1000 to 29000 rupees
price rage. Nokia and Motorola Inc are regaining some market share in smartphones but
while Nokia has profited from the gains, Motorola predicted a loss in the current quarter.

MOTOROLA CONSIDERS INDIA AS ONE OF THE BEST MARKETS:

The handset maker chose India to unveil a new mobile phone, the L6. The ultra-slim handset
is based on the clamshell design of the popular Razr.

The handset began shipping in India and will be launched in other markets later.

Motorola also announced that C115 handsets assembled in the country will be available.
Assembly in India is the first step in a multi-phase manufacturing strategy.

Motorola employs 3,000 software engineers in Bangalore and Hyderabad and has relocated
the headquarters of its higher-growth markets group to New Delhi.
It has also increased investments in its Bangalore-based software and hardware development
hub. India has one of the fastest-growing wireless markets in the world, with about 53 million
GSM-standard and 14 million CDMA-standard phone users.

The growth in new mobile phone subscribers has encouraged handset makers and other
technology companies to consider special strategies for Indian markets.

"We're doing our part to leverage and create opportunities--both for India and for Motorola,"
said by Allen Burnes, vice president of high-growth markets operations at Motorola.

MOTOROLA SALES POWERED BY DROID PHONES

Motorola, the US mobile phone handset makerhas growing popularity of its Droid devices
fuelled its first quarter of sales growth since 2006.

The $3m operating profit, which came a quarter earlier than expected, underscores the
success of the company‟s turnround strategy ahead of the planned spin-off of the mobile
phone and home devices business at the end of the year.

The mobile unit still posted a net loss, but analysts and investors were impressed by the
strong performance in both the US and Chinese markets, which came in spite of growing
competition from other Android-based devices including those from HTC and Samsung.

A STEPPINGSTONE TO 3G:

GPRS, or General Packet Radio Service technology, is a steppingstone to third-generation

mobile networks that allows higher data transmission rates. Motorola has already rolled out
GPRS to BPL Mobile, one of the two cellular operators in India‟s financial capital, Bombay.

They are optimistic of more orders from other cellular operators in the near future.Motorola
India is a 100 percent subsidiary of Motorola Inc. of the United States, the world‟s No. 2
mobile phone maker.

GPRS features “always-on” capability, which is expected to make wireless Internet access
faster and easier. Mobile phone carriers in Asia and Europe are in the early stages of rolling
out GPRS.
SWOT ANALYSIS

STRENGTHS

• Motorola is one of the world's leading providers of wireless communications,

semiconductors and advanced electronic systems, components and services.

• Motorola is an inventor of technology and has first-mover advantage.

• In the early 1980s, Motorola controlled the emerging U.S. market for wireless
communication devices such as cellular telephones, pagers and high-frequency radios.

• Motorola maintains sales, service and manufacturing facilities throughout the world,
conducts business on six continents and employs more than 139,000 people worldwide.

• Motorola is strongly committed to delivering customer satisfaction, continuous

improvement, and setting new standards of quality.

WEAKNESSES

• Motorola maintained old strategies in doing business, was conservative and

unambitious.

• Motorola was complacent in its leadership position in the U.S. market, and failed to
aggressively compete with the emerging Japanese firms.

OPPORTUNITIES

• Motorola can compete and expand globally.

Information and communications technology is fast-paced, with new discoveries happening

every minute. Motorola can match this speed of discovery with new and innovative product
and technology development.

THREATS

• Japanese electronics firms are heavy competitors in terms of cost and quality
leadership.

• Barriers to Entry, Supplier Power, Threats of Substitutes, Degree of Rivalry, and

Buyer Power
CONCLUSION:

Though Motorola is a leading player in the telecom sector in India it still had threats from
other leading players like Nokia, Samsung etc. To withstand the competition Motorola has to
adapt some differential strategies and should go for market expansion.

Also the Motorola phones are hard to use and are not user friendly. If this problem can be
rectified Motorola can gain a substantial position.

Finally, Motorola has a fairly large market in India and if it concentrates more on its
operations, it can make huge profits and have a good consumer base.

REFERENCES:

http://www.financialexpress.com/news/motorola-kicks-off-price-war-in-handsets/185200/0

http://www.thehindubusinessline.com/2009/01/22/stories/2009012251810400.htm

http://www.indiahousing.com/motorola-india.html

http://www.motorola.com/web/Business/Corporate/US-EN/history/timeline.html

http://www.motorolacareers.com/moto.cfm?cntry=India

http://in.finance.yahoo.com/q?s=MOT

http://www.mobilepundit.com/2006/11/29/motorola-has-14-market-share-in-india/

http://in.finance.yahoo.com/q/bc?s=MOT

http://www.thestreet.com/_yahoo/story/10932117/1/motorolas-new-nvidia-phones-aim-
high.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

http://en.wikipedia.org/wiki/Motorola

http://in.finance.yahoo.com/q/h?s=MOT

http://www.reuters.com/article/idUSTRE60R41Q20100128

http://topnews.ae/content/23245-motorola-reports-better-expected-second-quarter-results

http://www.physorg.com/news73070997.html

http://www.cellular-news.com/story/18517.php

http://www.hindu.com/2006/08/03/stories/2006080302861800.htm
http://www.itrportal.com/absolutenm/templates/article-
channelnews.aspx?articleid=3536&zoneid=28

http://pcworld.about.com/od/mergersacquisitions/Motorola-buys-Terayon-for-140.htm

http://www.thefreelibrary.com/DESPITE+STUNNING+FAILURE,+MOTOROLA+WINS.-
a064035989