2 STRATEGIC ANALYSIS
2.1 SWOT ANALYIS
A scan of the internal and external environment is an important part of the strategic
planning process. Environmental factors internal to the firm usually can be classified as
strength (S) or weaknesses (W), and that external to the firm can be classified as
opportunity (O) or threats (T). Such an analysis of the strategic environment is referred to
as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firms resources
and a capability to the competitive environment in which it operates. As such, it is
instrumental in strategy formulation and selection.
2.1.1 Strengths
Right now, the Motorola Company sees everyone as a potential customer. Going wireless
has not only become the latest and greatest fad, but very critical for business. Within the
cellular market exists two broad segments, the consumer segments and business segments.
Both of these groups have different expectations of the kind of service and value they
expect from their cellular providers.
Consumer Segment
The first segment, the consumer segment, consists of what I will call the “recreational”
users. The consumer segment counts for less than 30 percent of the total cellular market.
These customers do not depend on their cell phones for business purposes. They are
typically teenagers, college students, car phones, and members of families who are often
on the go and need to be able to get in touch with family and friends on occasion. Their air
time usage is usually lower than the members of the business segment.
The typical user is focused on certain aspects of their cellular providers: “How much does
it cost? Do I really need these great new wonderful things that technology is offering?
How often must I replace or recharge the batteries? Can I use this only in my town?” Most
technology-related studies indicate that consumers have relatively little interest in anything
other than if the product works when they want it to work. As the industry matures
effective customer segmentation and development of customized products will be critical
success factors.
Motorola has caught the eye of the younger consumer segment with a product called
“TalkAbout”, which comes in an icy blue to attract younger consumers who might be new
to cellular services but yield to a sporty image. This product combines both paging and
cellular phone services at one low price.
Business Segment
The second major segment is the business segment. Today, small businesses and corporate
segments account for about 70 percent of world cellular market. These users of cellular
