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Motorola's Market Share

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Autor:   •  November 6, 2010  •  993 Words (4 Pages)  •  357 Views

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Companies are always looking for ways to produce more revenue. Whether it is reaching out to different demographics or entering new product markets, entities are always planning that next step to succeed. Even if they hold a great amount of market share, their focus is always to predict the next hot item. An article in Business 2.0 discusses Motorola's Chief Technology Officer, Padmasree Warrior, and her next plan of attack for Motorola. The popular Razr cell phone has been and still is a huge revenue booster for Motorola, but Warrior does not want to dwell on the success; she is thinking about the next big act. The article was a great example of how Porter's 'Five Forces' can be applied in new product development and gaining market share overseas (where Motorola is not always the leader).

The article is a good example of some of the forces Porter developed. Motorola is fighting for market share in certain countries with Nokia. Gaining market share requires strategy, and these forces can help Warrior shape Motorola's strategy. The article talked about the rivalry of Nokia in countries such as India and how Motorola is actually behind in market share. The intense rivalry between cell phone companies gives more power to buyers. The goal for Warrior is to invent its way into the overseas market by creating cell phones that tailor to the specific culture of countries overseas. The consolidated cell phone industry leads to competitive interdependence between cell phone companies, where Motorola's new Wi-Max plans will quickly cause other large cell phone companies to give their consumers broadband everywhere. Warrior has her experts' blog different ideas for phones as a means for new ideas that could potentially be the next innovative cell phone for Motorola. This approach has led them to create innovative ideas to tailor customer needs like the Wi-Max (broadband everywhere) future plan.

The low risk of entry established in the cell phone industry allows Motorola and the other big names to focus more on product development. Warrior has her experts' debate different ideas to see if they can hold their ground and possibly be funded. By creating these innovated ideas they will be able to worry less about substitutes because they are actually creating the substitutes. The cordless phone is not quite the substitute it used to be. The convenient brand identity image that Motorola has makes it harder for smaller unknown cell phone companies to enter the industry.

One of the main problems for Motorola is the overseas cell phone sales. The bargaining power of buyers is high because they expect a cell phone that can tailor to their needs. Whether it is price or performance, they have the power to choose the brand of cell phone that best fits their needs. A lot of cultures, such as China, expect innovation and top-notch products. The article points out the newly released phone in China called "The Ming" that has an electrophoretic screen that you can view easily in broad daylight. The more innovation achieved by Motorola will increase barriers such as brand loyalty for them and scare other companies from entering this market. Motorola predicts that the Internet on cell phones will be the next big move to make, but there are still a lot of problems that need to be addressed. Motorola has invested a lot of money into funding the new Wi-Max. This will give customers an internet connection wherever

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