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Motorola's Global Strategy



Short description of the case

For years Motorola and was among the world’s most successful consumer electronics firms. The firm then controlled the emerging U.S. market for cellular telephones and pagers but, like many other firms at the time, was a bit complacent and not aggressively focused on competing with the Japanese. Motorola has remained the exception: Today it is one of the world leaders in mobile communication technology, including the manufacture of cellular telephones, paging devices, automotive semiconductors, and microchips used to operate devices other than computers. Japanese firms began to flood the U.S. market with low-priced, high-quality telephones and pagers. Motorola was shoved into the background.
Motorola then decided to fight back and regain the firm’s lost market position. This fight involved a two-part strategy: First learn from the Japanese and then compete with them. To carry out these strategies, executives set a number of broad-based goals that essentially committed the firm to lowering costs, improving quality, and regaining lost market share. Managers were sent on missions worldwide, but especially to Japan, to learn how to compete better. Motorola also try to achieve Six Sigma quality – which is become main strategy of Motorola. By using this strategy, Motorola try to achieve a perfection rate of 99.9997%.
When Motorola actually achieved this level of quality, it received the prestigious Malcolm Baldrige National Quality Award. Motorola become success on its operations abroad, especially in Japan. It also generates over 56% of its revenues abroad.

Problem identification of the case

From the case, one of Motorola’s strategy in doing the business is expanse its business abroad. The firm then needs to concentrate on how to do its business abroad and what kind of strategies should be taken to achieve its goal. Motorola controlled the emerging U.S. market for cellular telephones and pagers. Motorola has also won many...