Marketing Motorola

SWOT Analysis

MOTOROLA RAZR V3 SWOT ANALYSIS

STRENGTHS

• Brand recognition- Motorola is known around the world. Their business is operated globally.

• Effective Promotional Strategy- The company effectively used all sorts of media like TV, FM, Internet, Outlets, Promotions, etc of advertisement to market its product.

• Strong financial resources- Motorola is a market leader in wireless communications. They had sales of $36.8 billion in 2005.

• Product Innovation- Motorola is willing to take risks. They designed the RAZR, thinnest phone ever successfully launched.

• Proprietary Products- The company developed Mobile Extreme Convergence (MXC) Architecture to produce high multimedia mobile devices by eliminating many of the design limitations of affordable, advanced, full-featured mobile devices.

• High Quality Standards in Use- The use of Six Sigma Quality Standards over the entire lifecycle of the product from research and development to the product reaching the customer has enabled the company to carve a niche for itself.

• Socially responsible- Motorola donated 2-way portable radios, phones and networking equipment to assist with critical communications in Jakarta after a devastating earthquake in May. Motorola employees also volunteer in Chicago to paint and clean up schools, parks and social service agencies as well as building houses for Habitat for Humanity.

• Strong customer service department

WEAKNESSES

• Limited number of suppliers for certain key components. Hold-ups in the supply chain could be hurting sales (Forbes.com).

MACROECONOMIC

• Competitors- Merger of Sprint and Nextel in 2005. “Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks offering industry leading mobile data services; instant national and international push-to-talk capabilities; and an award-winning and global Tier 1 Internet backbone” (sprintnextel.mergerannouncement.com).

• Possible acquisition of TTP Communications. “TTPCom is a leader in wireless software platforms, protocol stacks and semiconductor solutions and is a highly complementary addition to Motorola’s technology portfolio” (Motorola Mediacenter- Press Releases).

• Technology- Everyday advancements are being made and new technology is being introduced to society.

• Changing Society- The American population as a whole is becoming more tech-savvy.

• Culture- Cell phones are becoming a part of the American culture. They are even beginning to replace traditional phones in a lot of homes.

• Customers- Most cell phone users want to keep up to date with the latest technology but they expect reasonable prices.

OPPORTUNITIES

• Because Motorola is already a market leader and well-known for being an innovator, it has the opportunity to gain an even larger market share by acquiring TTP Communications. By joining together, the potential for sales growth increases for both companies. So, Motorola’s strengths, brand recognition and product innovation in addition to the acquisition of TTPCOM could equal increased sales and a larger market share.

• By coupling Motorola’s product innovation with the customer’s expectation