Motorola Business Strategy

MOTOROLA BUSINESS STRATEGY
There are several strategy that Motorola use to gain competitive advantage to enter the market and widening their market opportunity to attract more customer to use their product.

1. Forward Integration strategies
Motorola also now has their own website to give various information related to product and services that their offer. Through the creation of the website are causing an e-commerce activity between user and the retailer. The Motorola website also can be choose in different language and consumer can contact each of Motorola retailer that avaiable each selected country. This help the company track their consumer more easily, save time and cut cost effectively.
2. Intensive strategies
Motorola also use this strategy to seek to increase market share, present product or services into new geographical area and improving their present product or services. For example, china has been selected has their next place to strategize their business. This help to better positioned to drive development of country that their selected in terms of wireless industry and to achieve win-win results with local customers, consumers and partners. For example in December 2007, Motorola announced the inauguration of its R&D complex in Wangjing, Beijing, a 92,000-sq.-meter complex that consists of one 16-floor office tower, three low-rise R&D buildings and one lab building, and will accommodate more than 3,000 Motorola employees, including 2,000 R&D engineers. More new product and services avaible that Motorola offer, for instance network service, wireless solution and new mobile phone for customer, business and government use.

3. Horizontal Integration strategies
Motorola has its strengths and weaknesses it also has its share of problems that include the threats that I mentioned above. They are faced with competition in the Vietnam Market from L G information Communications along with Information & Technology agreed to jointly develop equipment for wireless phone services using code division multiple access technology and fiber optic cables. This puts Motorola in tough competition with LG Information for the valuable Vietnamese market.

4. Defensive strategies.
Motorola's handset division recorded a loss of $1.2 billion in the fourth quarter of 2007, while the company as a whole earned $100 million during that quarter. It lost several key executives to rivals and the web site TrustedReviews has called the company's products repetitive and uninnovative. Motorola laid off 3,500 workers in January 2008, followed by a further 4,000 job cuts in June and another 20% cut of its research division a few days later. In July 2008, a large number of executives left Motorola to work on Apple Inc.'s iPhone. Facing bankruptcy, the company has been put on offer for sale to several other major rivals such as Samsung Electronics, LG Electronics and Sony Ericsson, yet all have rejected the offer. In July 2008, analyst Mark McKechnie from American Technology Research said that Motorola "would be lucky to fetch $500 million" for selling its handset business and analyst Richard Windsor said that Motorola might have to pay someone to take the division off the company and that the company may even exit the handset market altogether. Its global market share has been on the decline; from 18.4% of the market in 2007, it had a share of just 9.7% by 2008.