motorola in china

Motorola in China From ‘Intended’ to ‘Emergent’

StrategiesSubmitted: Asams VK

Ashish Mehta Reeshma Naligala

Background• Founded in 1928• Initially produced car radios and TV receivers.• Invented cellular technologies and became a market leader by

1980.• Dominated the Telecom industry.

Motorola in China• Entered the Chinese market with Western Strategies• Was successful initially, until competition grew in 1995• “Nihao Moto” – January 2003• Invested $3.4 billion• New product-line• Mobile phone maintenance service express• Agreement with China Mobile to research on 3G

Emerging with China Unicom• Phase – 2: $10 million• Phase – 3: $80 million• Topmost supplier to China Unicom’s CDMA• 6 more contracts worth $240 million• Java technology based platforms• MOU with Chinese government

Downfall• SARS• Growing inventories• Rise of domestic and international competition• 2+3+3 Strategy• Lost the top position to Nokia in 2004

Primary operation in china:Manufacturing R&D


Target set for yearend 2006: 10$ Billion worth:

Production in ChinaComponent purchase

Direct or indirect investment




Expansion in ChinaSemi conductor

productionBroadband EquipmentDigital trunking networks



Re-rise• Divided the market into 4 regional segments• Replaced distributors by retail outlets• ACOE• Moved design unit to India and China• Broadband services to 3 cable networks• 4 million customers in 3 cities• Launch of V3

• Revamped the organisational setup

• Focus on profits rather than market share

• More low-end handsets

• Adding technologies of Camera, Mp3, Videos, E-mail etc.

• Expanded into smaller cities

• 3G RnD centre in Beijing

MING Launched in 2006

Attracted more than 3 Million debut

Step up to retailing, stores in 3 location with more than 9 stores

Stores offered 1. Free download of ringtone2. Wallpapers3. In-store training to customers4. Personalization facility through ‘Phone tattoos’

V.P Marketing retail stated “If they touch the device, they are five times more likely to buy it’

Targeted at affluent early adopters

Showcased their latest ‘WOW’ factor

2005 20060%

5%

10%

15%

20%

25%

Market Share They attacked the young consumers with high power functionality

Donated more than $ 5Million towards children's education

In 2007 company received contracts from china Mobile worth of $394 Million for expand and update GSM standards

They generated 60% revenue in the first half of the year

In second quarter they recorded a loss of $21 Million

To regain the market they came with Motorola RAZR

Again it become a big failure

All models of Moto RAZR failed in China

Reason for the failure

Fashion related product

Life span of mobile was 6 to 10 month

Improper forecasting

Lack of first mover advantage

Lack of strategic capabilities

Thank You.

motorola in china

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