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STM Group Assignment

The document discusses the strategic issues that led to the downfall of Motorola in the mobile phone industry. Key issues included a slow response to the smartphone boom, lack of innovation, restrictive operating system choices, a fragmented product portfolio, missed partnerships, ineffective marketing, quality control issues, management changes, challenges expanding globally, failure to anticipate consumer trends, and insufficient focus on user experience.

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0% found this document useful (0 votes)
30 views3 pages

STM Group Assignment

The document discusses the strategic issues that led to the downfall of Motorola in the mobile phone industry. Key issues included a slow response to the smartphone boom, lack of innovation, restrictive operating system choices, a fragmented product portfolio, missed partnerships, ineffective marketing, quality control issues, management changes, challenges expanding globally, failure to anticipate consumer trends, and insufficient focus on user experience.

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q87319167
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We take content rights seriously. If you suspect this is your content, claim it here.
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STM

Assignment
Submitted by:

Yumna Tariq 01-321232-052


Mehwish 01-321232-060
Raja Shahroze Sikandar 01-321232-038
Qamar Maqsood 01-321232-036

Date: December 22, 2023


Motorola, was a dominant player in the in the mobile phone industry but due to their strategic issues they faced the
downfall. Timely adopting a strategy is the great measure of a company otherwise they face the decline. Once major
issue that they didn’t address timely is the address of shift in customer preferences toward smartphones. Due to the
company's slow response to the smartphone boom, rivals like Apple and Samsung significantly increased their
market share

Lack of Innovation:
Motorola's unwillingness to adopt technologies like app stores, touchscreen interfaces, and strong internet
capabilities things that have since become commonplace in smartphones was indicative of its lack of innovation.
The RAZR series, which was once a representation of Motorola's success, saw a drop-in market share as a result of
its lack of the technological innovations that rivals were implementing.

Operating System Choices:


By sticking with its proprietary operating system (such as the Motorola ROKR E1's use of iTunes) rather than
adopting Android or other well-liked platforms, Motorola restricted user customization choices and impeded the
growth of a thriving app ecosystem.
Motorola saw an opportunity when Google acquired Android Inc. in 2005, but at first it was unable to take use of it.

Fragmented Product Portfolio:


Motorola's product range became unduly fragmented, offering a variety of devices that frequently shared features
and cost points in order to appeal to diverse market niches. The company's inability to concentrate its efforts due to a
disjointed product strategy caused its brand to become diluted and customers to become perplexed about the benefits
of each item.

Missed Partnerships:
In contrast to Samsung, which worked with Android, and Apple, which maintained strict control over its ecosystem,
Motorola was unable to establish solid alliances with major participants in the software and app development space.
Motorola's inability to differentiate its devices from those of its competitors through exclusive apps or features
hindered the company's ability to draw in and keep customers.

Ineffective Marketing:
In contrast to Samsung, which worked with Android, and Apple, which maintained strict control over its ecosystem,
Motorola was unable to establish solid alliances with major participants in the software and app development space.
Motorola's inability to differentiate its devices from those of its competitors through exclusive apps or features
hindered the company's ability to draw in and keep customers.

Quality Control Issues:


Motorola occasionally has problems with the durability and quality. and caliber of its products. This had an impact
on consumer satisfaction and harmed the brand's reputation. Due to its deficiencies in terms of build quality and
endurance, Motorola's competitive position was further damaged as consumers placed an increased emphasis on
these aspects of their devices.

Management Changes and Internal Turmoil:


There may not have been a consistent strategic orientation at Motorola due to periods of executive churn and
internal reorganization. The implementation of long-term strategies can be disrupted and the company's capacity to
effectively respond to market fluctuations can be hampered by organizational instability and changes in leadership.

Global Market Expansion Challenges:


Motorola has trouble growing its footprint in important international areas. Although the corporation was well-
established in the US, it found it difficult to capture a sizable portion of the market in nations like China and India
that were expanding quickly. Rivals, especially those with headquarters in Asia, gained an advantage in these vital
regions by being able to adjust to local tastes and pricing points faster.
Failure to Anticipate Consumer Trends:
Motorola was unable to correctly and adjust to changing customer trends. Although users began to favor more
customizable choices, like removable covers and personalized accessories, Motorola was sluggish to adopt these
trends into its product lineup.
Competitors were able to provide more interesting and enticing items by embracing and profiting from consumer
trends.

Insufficient Focus on User Experience:


Motorola failed to deliver a consistent and user-friendly user interface across its product line, while rivals like
Apple placed a strong emphasis on a seamless and user-friendly experience.
The general allure of Motorola devices was weakened by inadequate focus on software optimization and user
experience design, particularly in contrast to competitors' seamless and integrated experiences.

These are the main points which is the main reason of declining of Motorola's strategic planning failures.

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