Motorola: Innovating to become the handset market leader

Chapter 2 Strategic Overview

• 2.1 Motorola's Mission, Objectives, Strategies and Tactics (MOST)
  • 2.1.1 Mission Statement
  • 2.1.2 Objectives
  • 2.1.3 Strategies and Tactics
• 2.2 Organisational Structure
  • Table 2 New Divisions of Motorola
    • Figure 1 Motorola's Structure
    • Figure 2 Structural Overview of Top Management (December 2005)
  • 2.2.1 Restructuring of Motorola has Resulted in a More Streamlined Approach
  • 2.2.2 New Business Units
  • 2.2.3 Divestment of Semiconductor Operations has Helped Focus on Core Competencies
  • 2.2.4 The implications of Structural changes at Motorola
  • 2.2.5 Reduction in Workforce
    • Chart 1 Reducing the Workforce (2003-2004)
  • 2.2.6 Company Values
  • 2.2.7 Culture: Evolution, not Revolution
    • Figure 3 Motorola's Culture Web
  • 2.2.8 Human Capital: More is Needed
  • 2.2.9 Brief History
  • 2.2.10 Changes Since 2000 are Stabilising
  • 2.2.11 Ed Zander's Leadership Style

Chapter 3 Motorola's Business Units

• 3.1 Networks Division
  • 3.1.1 Product Portfolio
    • Table 3 Network Division's Portfolio
    • 3.1.1.1 Solutions for Network Operators
    • 3.1.1.1.1 CDMA Solutions
    • 3.1.1.1.2 GSM Solutions
    • 3.1.1.1.3 IP Multi-Media Subsystem Solution
    • 3.1.1.1.4 Motorola Push-to-Talk over Cellular (PoC)
    • 3.1.1.1.5 Motorola GAMA
    • 3.1.1.1.6 Motorola MMSC
  • 3.1.2 Network Division's Size and Structure
    • Table 4 Network Division's Design Centres
    • Table 5 Network Division's Manufacturing Centres
  • 3.1.3 Strategies in Network's Business
  • 3.1.4 Towards an End-to-End Product Portfolio in Networks
  • 3.1.5 Objectives in Networks Business
  • 3.1.6 Motorola's Drive to Promote New Technologies
    • 3.1.6.1 IMS
    • 3.1.6.2 Banking on HSDPA
    • 3.1.6.3 Increased Focus on WiMAX
    • 3.1.6.3.1 Moto Wi4 Product Portfolio
    • 3.1.6.4 Widespread Push-to-Talk (PTT) Presence
    • 3.1.6.4.1 PoC Customers
    • Table 6 Motorola's PoC Customers
    • 3.1.6.5 iDEN
    • 3.1.6.6 UMA trials and goals
  • 3.1.7 Network Division's Customers
    • Table 7 Main Customers of Network Division
  • 3.1.8 Recent Contracts
    • 3.1.8.1 Summary of Key Contracts
    • Table 8 Motorola's Key Contracts in Networks
  • 3.1.9 Financial Performance
    • Table 9 Network Division's Performance
    • Chart 2 Sales Figures for Network Division (2000-2004)
  • 3.1.10 Market Share in Infrastructure Industry
    • Chart 3 Motorola's Share of the GSM Market (2000-2004)
    • Chart 4 Motorola's CDMA Share (2004)
    • Chart 5 Motorola's Overall Market Share (2001-2004)
  • 3.1.11 Future Plans in Networks
  • 3.1.12 Future Growth in Networks
  • 3.1.13 Challenges facing Motorola in the Infrastructure Industry
  • 3.1.14 Manufacturing in India on the Horizon
  • 3.1.15 Highlights of Network Division
  • 3.1.16 Recent Performance
• 3.2 Government and Enterprise Solutions
  • 3.2.1 Division's Strategy
  • 3.2.2 Reliance on a Few Large Customers
  • 3.2.3 Division's Product Portfolio
    • Table 10 Key Products from the Government and Enterprise Division
    • Table 11 Summary of Key Contracts of Government and Enterprises Division
  • 3.3.1 Connected Home Division's Strategy
  • 3.3.1 Product Portfolio
    • Table 12 Key Products from the Connected Home Division

Chapter 4 Mobile Devices Division

• 4.1 Performance is Improving
  • 4.1.1 Increasing Market Share
    • Chart 6 Motorola Vs. Nokia (Global Market share in Handsets Q2 2004/2005)
    • Chart 7 Motorola's Percentage Growth of Market Share in Handsets compared to Nokia's
• 4.2 Mobile Divisions Structure and Size
  • 4.2.1 Reliance on Outsourcing
• 4.3 Motorola boasts a Diverse Product Portfolio
  • Table 13 Product Portfolio of Mobile Devices Division
  • Table 14 Motorola's Handset Portfolio and Availability 2005/2006
  • 4.3.1 Integrated Digital Enhanced Network (iDEN)
  • 4.3.2 Mobile Phones/Cellular Phones
    • 4.3.2.1 ROKR
    • 4.3.2.1.1 Features
    • Table 15 Key Features of ROKR
    • 4.3.2.1.2 Pricing & Availability
    • 4.3.2.1.3 Drawbacks of the Offering
    • 4.3.2.2 Motorola Q
    • Figure 4 Motorola Q
    • Table 16 Motorola Q Features
    • 4.3.2.3 Razrwire
    • Table 17 Features of Razrwire
    • 4.3.2.4 Razr V3
    • 4.3.2.5 V3X: MOTOROLA'S 3G Razr
    • 4.3.2.5.1 Features of V3X
    • Table 18 Features of V3X
    • 4.3.2.6 The Motorola i560
    • 4.3.2.6.1 Features of i560
    • Table 19 Features of i560
• 4.4 Markets
  • Chart 8 Market Segmentation 2004
  • Chart 9 Revenue Growth (2003-2004)
    • 4.4.1 US
    • 4.4.2 India
    • 4.4.3 China
    • 4.4.4 EMEA
• 4.5 Customers
  • Table 20 Mobile Devices Top Customers
  • 4.5.1 Nextel
    • 4.5.1.1 Motorola faces risks associated with Sprint/Nextel merger
  • 4.5.2 The Importance of Retailers and Distributors for Motorola
    • Chart 10 Sales through Distributors as % of total sales
  • 4.5.3 Enterprise Customers
• 4.6 A Strategic Review is Required
• 4.7 New Opportunities from Upcoming Technologies
  • 4.7.1 IMS Handsets
  • 4.7.2 HSDPA Handsets
  • 4.7.3 Wi-Fi Handsets
  • 4.7.4 PoC handsets
• 4.8 Handset Market Recommendations
  • 4.8.1 Signature Handsets
  • 4.8.2 Handset Categories and their Shipments
    • Chart: 11 Motorola's Device Shipments by Type
  • 4.8.3 Focus on Youth-driven Marketing
• 4.9 Motorola's Key Competitors
  • Table 21 Key Handset Market Vendors
  • 4.9.1 Nokia
    • 4.9.1.1 Motorola can Exploit Nokia's Weaknesses
    • 4.9.2.2 Nokia's Strengths in Multiple Countries and Regions Creates Difficulties
  • 4.9.2 Samsung
  • 4.9.3 LG
  • 4.9.4 Sony Ericsson
  • 4.9.5 Siemens/BenQ
  • 4.9.6 Emerging Asian and Chinese Competition
  • 4.9.7 Strategic Review required
• 4.10 Analysis of Motorola's Market Share
  • Chart 12 Major Vendor Market Share Q3 2004
  • Chart 13 Major Vendor Market Share Q3 2005
  • Chart 14 Handset Shipment Statistics by Vendor (Q3 2004-Q3 2005)
• 4.11 Motorola's Product Portfolio Compared to its Competitors
  • Table 22 Comparison of product portfolio of top players in the Handset market

Chapter 5 Motorola's Position in the Handset Market

• Table 23 Motorola's Objectives in the Handset Market
• 5.1 Motorola's Handset Market Strategy Follows a Two-Pronged Approach
  • 5.1.1 Innovation
  • 5.1.2 Customer Focus
• 5.2 Motorola's Tactics in the Handset Market
  • 5.2.1 Partnerships
    • 5.2.1.1 Motorola and Apple
    • 5.2.1.2 Motorola and Yahoo
    • 5.2.1.3 Motorola and Oakley
    • 5.2.1.4 Motorola and Microsoft
• 5.3 Macro Environment
  • Table 24 PEST Analysis
  • Figure 5 Critical Environmental Factors Affecting Motorola
• 5.4 Analysing the Handset Industry Attractiveness for Motorola
  • Figure 6 Porters Five Forces Affecting Motorola's Handset Business
  • Table 25 Factors to Increase the industry attractiveness
• 5.5 Options and Choices Available to Motorola
  • Figure 7 Options and Choices for Motorola in Handset Market
• 5.6 Strategies for Success

Chapter 6 Financial Performance and Market Analysis

• 6.1 Motorola's Overall Performance
  • Table 26 Financial Performance (2002-2004)
  • Table 27 Motorola's Revenue by Region (2004)
  • Chart 15 Motorola's Revenues and Sales Growth
  • Chart 16 Revenue Contribution from different Geographical regions (2004)
  • 6.1.1 Net Profits
    • Chart 17 Net Profits (2002-2004)
  • 6.1.2 Performance of Each Sector
    • Chart 18 Revenue Generation by Sector (2004)
  • 6.1.3 Quarterly Performance
    • Chart 19 Sales Growth Rate (Q2 2004-Q3 2005)
    • Chart 20 Year on Year sales comparison (Q1 -Q3 2004/2005)
    • Chart 21 Motorola's Operating Earnings Trend (Q1 -Q3 2004/2005)
• 6.2 Growth of Mobile Devices Division
  • Chart 22 Sales of Mobile Devices Division
  • Chart 23 Motorola's Handset Shipments (Q2 2004- Q3 2005)
  • Chart 24 Quarterly Increase/Decrease in Motorola's Share in Handset Market
  • Chart 25 Annualised Market Handset Industry Share (2001-2004)
  • Chart 26 Motorola's Market Share by Region
  • 6.2.1 Profit Margins
    • 6.2.1.1 New Thinking is Required to Improve Margins
  • Chart 27 Motorola's Operating Margins in Handset Division (Q3 2004-Q3 2005)
  • Chart 28 Comparison between Motorola and Nokia's Market Share
• 6.3 Growth of Networks Division
  • Chart 29 Revenues and Operating Margins Networks Division (Q1-Q3 2005)
• 6.4 Growth in Governments and Enterprises
  • Chart 30 Revenues and Operating Margins Government and Enterprises Division (Q1-Q3 2005)
• 6.5 Connected Home
  • Chart 31 Revenues and Operating Margins Connected Home Division (Q1-Q3 2005)
• 6.6 Outlook: Motorola Needs to Achieve Greater Leverage

Chapter 7 Seamless Mobility Strategy

• 7.1 Early Recognition of FMC has Driven Seamless Mobility
  • Figure 8 Convergence of Fixed and Mobile Networks
  • 7.1.1 Efforts and Devices in the direction of Seamless Mobility
    • 7.1.1.1 RAZR for UMA
    • 7.1.1.2 Alliance with Skype
    • 7.1.1.3 Avaya, Motorola and Proxim Partnership is Close to Fruition
  • 7.1.2 Seamless Mobility and the Interest in WiMAX
  • 7.1.3 How Motorola's Various Divisions fit into the Seamless Mobility Vision
    • Table 28 Contribution of Motorola's Divisions towards its Vision of Seamless Mobility
    • 7.1.3.1 Networks Group
    • 7.1.3.2 Mobile Devices
    • 7.1.3.2.1 Enterprise Products
    • 7.1.3.2.1.1 Motorola CN620
    • 7.1.3.2.1.2 Motorola MPx220
    • 7.1.3.3 Government and Enterprise
    • 7.1.3.3.1 Motorola's Recent Solutions for Government and Enterprise
    • 7.1.3.3.1.1 Mobile Automated Fingerprint identification System (AFIS)
    • 7.1.3.3.1.2 Soft Switched Radio Network
    • 7.1.3.4 Connected Home
    • 7.1.3.4.1 Ojo Personal Video Phone
    • Figure 9 Ojo Video Phone
    • 7.1.3.4.2 High-Definition Dual-Tuner Digital Video Recorder
    • 7.1.3.4.3 Home Media Architecture
    • 7.1.3.4.4 Motorola Home Monitoring and Control System
• 7.2 Synergies between Motorola's Units
  • Figure 10 Motorola's Value Chain
  • 7.2.1 Six Sigma Contributes to Manufacturing Efficiency
  • 7.2.2 Developing Towards a Global Supply Chain
  • 7.2.3 How to Leverage the Integrated Structure
  • 7.2.4 Competition and Roadblocks facing Motorola
    • 7.2.4.1 Other Players in the Industry Working on Products Supporting Seamless Mobility
    • 7.2.4.1.1 HP
    • 7.2.4.1.2 Nortel

Chapter 8 Becoming the Handset Industry Leader

• 8.1 Changing Paradigm of the Mobile Handset Market
  • Chart 32 Mobile Subscriber Growth (2003-2010)
    • 8.1.1 Mobile Networks: Coverage Statistics
  • Chart 33 Wireless Network usage Worldwide (Percentage)
    • 8.1.1.1 Subscriber Growth in Emerging Markets
  • Chart 34 Subscriber CAGR in Emerging and Mature Markets (2005-2010)
    • 8.1.2 Deployment of New Technologies
  • Chart 35 W-CDMA Subscriber growth estimates (2002-2010)
  • Chart 36 Annual Camera Phone Shipments (2003-2010)
  • Chart 37 Global Handset Shipments (2003-2010)
    • 8.1.3 Blurring of Industry Boundaries
    • 8.1.4 Competition and Other Factors Affecting Industry
  • Chart 38 Top Vendor Market Share (2001-2005)
• 8.2 Seizing Market Opportunities
  • Table 29 Comparison between Motorola and Nokia's Products
  • Table 30 Comparison between Nokia and Motorola's Strategy (Year by Year)
  • Table 31 R&D Expenditure and Facilities for Nokia and Motorola
  • Table 32 Comparison between Nokia and Motorola's Market Share by Geography (Q3 2005)
    • Figure 11 Bridging Gaps in the Strategy
  • 8.2.1 Mastering Operational Excellence is Critical
  • 8.2.2 Marketing will Continue Playing a Crucial Role
  • 8.2.3 Ensuring Competitive Advantage through Product Innovation
  • 8.2.4 Impact on Bottom Line
  • 8.2.5 Handset Design Strategy
  • 8.2.6 Creativity and Flexibility
  • 8.2.7 Market and Product Development
    • 8.2.7.1 Motorola in Emerging Markets
    • Table 33 List of Member Operators in EMH Programme
    • 8.2.7.2 Motorola in Saturated Markets - The Right Mix of Handsets?
  • 8.2.8 In the Final Analysis

Chapter 9 Conclusions

• Table 34 Motorola SWOT Analysis
• 9.1 Challenges and Difficulties Lie Ahead
  • 9.1.1 Mobile Devices Division
  • 9.1.2 Network Division
  • 9.1.3 Government and Enterprise Division
  • 9.1.4 Connected Home Division
• 9.2 Strategies for Success
• 9.3 Recommendations
  • 9.3.1 Market Awareness
  • 9.3.2 ASP and the Market
  • 9.3.3 Relationships with Partners
  • 9.3.4 Relationships with Operators
  • 9.3.5 Market Segmentation

Appendix A Lead Author's Profile

Appendix B About visiongain

Appendix C Report Evaluation Form

Organisations Listed

• AIS
• Alltel
• America Movil
• Apple
• AT&T Wireless
• Avaya
• BenQ
• Bharti
• Bouygues Telecom
• BSNL
• BT
• China Mobile
• China Unicom
• Chungwa Telecom
• Cingular /SBC/BellSouth
• Cisco
• Claro
• DBTel
• Deutsche Telekom
• DoCoMo
• Dynatec
• Ericsson
• France Telecoms/Orange
• Fujitsu
• Global Telecom
• Huawei
• KDDI
• Kyocera
• LG Electronics
• Matsushita
• Maxis
• Mckinsey
• Mitsubishi
• mmO2
• Motorola
• MTNL
• NEC
• Nextel
• Ningbo Bird
• Nokia
• Nortel
• Oakley
• Optimus
• Orascom
• Pansonic
• PBTL
• Philips
• Proxim
• Qualcomm
• Sagem
• Samsung
• Sanyo
• Sharp
• Siemens
• SingTel
• SK Telecom
• Skype
• Smart
• Sony
• Sony-Ericsson
• Sprint PCS
• Symbian
• TCL
• Telcel
• Telecom Italia Mobile
• Telefonica
• Telenor
• TeliaSonera
• TMN
• Turkcell
• Verizon
• Vodacom
• Vodafone
• Wataniya Telecom