1. What are the components of Motorola’s international strategy?
2. Describe how Motorola might have arrived at its current strategy as a result of a
SWOT analysis.
3. Discuss Motorola’s primary business strategy.
Key Points
n Motorola has been a leader in microchip and semiconductor production for years. It also
established itself as a leader in
mobile communication technology. However, Motorola has not achieved this leadership
position without a fight.
n Motorola’s initial reaction to the invasion of Japanese producers in the cellular telephone
and pager market in 1980s was slow and uncertain. Eventually, Motorola decided to fight
the Japanese using a two-pronged strategy, first by learning from them and then by
competing with them.
n Motorola was committed to lowering costs, improving quality, and regaining market
share. To that end, managers studied Japanese operations and learned how to compete
more effectively. Motorola simultaneously increased its R&D and employee training
budgets. In fact, a total reengineering of the company took place.
n The turnaround at Motorola was hugely successful. The company won the prestigious
Malcolm Baldrige National Quality Award and is currently the number three producer of
pagers and cellular telephones for the Japanese market. On a worldwide scale, Motorola
controls some 15 percent of the market for these products and is the number two producer
of semiconductor chips. In addition, the company is rapidly introducing new products.
n Motorola is working to avoid the complacent position it found itself in during the early
1980s and has set enormously chal-lenging goals of continuous improvement for itself. In
addition, it has decided that more than three quarters of its revenues should accrue from
