Motorola, Inc. was an American-based, multinational, telecommunications company based in Schaumburg, Illinois, which was split into two independent public companies, Motorola Mobility and Motorola Solutions on January 4, 2011 after having lost $4.3 billion from 2007 to 2009.
Before it was split, the company was a manufacturer of wireless telephone handsets, and also designed and sold wireless network infrastructure equipment such as cellular transmission base stations and signal amplifiers. Motorola's home and broadcast network products included set-top boxes, digital video recorders, and network equipment used to enable video broadcasting, computer telephony, and high-definition television. Its business and government customers consisted mainly of wireless voice and broadband systems used to build private networks and public safety communications systems like Astro and Dimetra. Motorola's handset division is focused on smartphones using Google's open-source Androidmobile operating system. The first phone to use the newest version of Google's open source OS, Android 2.0, was released on November 2, 2009 as the Motorola Droid (the GSM version launched a month later, in Europe, as the Motorola Milestone).
Motorola Semiconductor Product Sector (SPS) has restored its relationship with specialty distributor, Richardson Electronics Ltd., LaFox, Ill., three years after dropping it. This move comes on the heels of the company's reversal of a long-held policy prohibiting its distributors from carrying Asian semiconductor lines. That policy itself had been eased in 1997, when Motorola agreed to allow its distributors to carry a single Asian line, but no more than one. All of these changes happened in the shadow of a large scale corporate restructuring.
In announcing the Richardson deal, Motorola SPS senior management cited Richardson's global presence in radio frequency (RF) products, technical sales force, and microwave and wireless markets as reasons for adding Richardson as its global RF-focused distributor. Asked about the changes in its distribution strategy, Alberto Macchi, Motorola SPS director of distribution sales, noted the company has changed significantly and that it sold its high-volume commodity component business to Texas Pacific Group.
"Three years ago we were selling high-tech and commodity products," Macchi said. "Now we only have high-technology products." And the company's distribution needs have changed. "There's no need to be in the high-volume market. There's no fight anymore to get our share of shelf space. Our priority now is demand creation, and to find distributors to go drive the market. More and more we are asking our distributors to create demand for us," Macchi added.
"Motorola obviously has gone through a lot of soul searching in regards to its entire semiconductor operation over the last year or two," said Clarke Walser, distribution analyst and principal with Walser & Associates in Arlington Heights, Ill.
Motorola's change in product mix created the need for a specialty distributor, Macchi added. "We need dedicated resources and dedicated knowledge," he noted. Walser said, "They recognize that the big broad-line distributors couldn't do the job in this specific area that Richardson could do for them. Being a product specialist, it's easier to tell (customers) who you are.
Motorola continues to revamp its product portfolio in a bid to address larger market segments. Increasing its range of products from mere 10 in mid 2005 to 30 products, Motorola now has a product for every price point. It launched its entry level Motofone. Its Motofone brand of GSM phone is available at Rs 1,650, while the cost of CDMA phone is Rs 1,299. Motorola launched four entry-level phones in April 2007. Apart from the low-end, it has introduced a comprehensive range of mid-range and high-range devices. Apart from handsets, Motorola has introduced products to cater to Bluetooth segment.
We are focusing products based on the needs of the market'
This can be some questions regarding the distribution strategy of Motorola:
1)How has Motorola India performed in FY '06-07?
Motorola India revenues grew considerably. There was a huge growth in revenue with the revival of the handset business. In the connected home space of cable and DTH we have made some beginning and real growth is planned for 2008, as people have started to move from analog to digital.
2)Things don't look too rosy for you in wireless infrastructure.
What are your plans?
In the area of cellular infrastructure we have some setbacks but we still retain footprint in with major operators. Operators believe that the future is with the wireless broadband (3G and WiMax). And we are well positioned, both with respect to technology and product. We have a relationship with every operator, and we plan to grow significantly in 2008.
3)Motorola has done exceptionally well on mobile handsets. What were the reasons for your success?
In mobile handsets there were three key points. First, reorganizing the Indian market as it has unique requirements and one has to leverage in terms of software customization with respect to user interface and application. Second, we significantly strengthened our distribution channel to increase our reach. Third, we stepped visibility in the consumer space through brand ambassadors and innovations. We are focusing products based on the needs of the market.
4)There has been a lot of talk about WiMax, CDMA, EV-DO, and WCDMA. How do you see these technologies in FY '07-08?
Our next big thrust is broadband/entertainment TV to the home. We are also looking at connected homes and we have the visibility in devices. We have a huge role in terms of new technology to the consumer such as WiMax CPE and phones. In the initial stages any box will do but later world class products and brands make an entry. We are banking on handset to leverage on these two fields, and it is operator driven as well as channel driven. It will be a new game for everyone and has to be played sensibly.
On the branding front, Motorola is focusing on the India appeal. It wants to build a strong India connection. It has revamped its marketing strategy and instead of product focus it is personality focused. Motorola is promoting itself as a youth brand and the emphasis is therefore on the color and design.
On the network front, Motorola has bagged MTNL contract for the supply 2G/3G cellular network for Delhi. Motorola has got orders for 2 million lines and will take care of network deployment and maintenance services. The company also got expansion orders from BSNL.
A number of important investments in manufacturing and R&D, and its focus on distribution, product, brand and partnership strategy has made Motorola an aggressive player in the Indian market, though a long way to go.
Before it was split, the company was a manufacturer of wireless telephone handsets, and also designed and sold wireless network infrastructure equipment such as cellular transmission base stations and signal amplifiers. Motorola's home and broadcast network products included set-top boxes, digital video recorders, and network equipment used to enable video broadcasting, computer telephony, and high-definition television. Its business and government customers consisted mainly of wireless voice and broadband systems used to build private networks and public safety communications systems like Astro and Dimetra. Motorola's handset division is focused on smartphones using Google's open-source Androidmobile operating system. The first phone to use the newest version of Google's open source OS, Android 2.0, was released on November 2, 2009 as the Motorola Droid (the GSM version launched a month later, in Europe, as the Motorola Milestone).
Motorola Semiconductor Product Sector (SPS) has restored its relationship with specialty distributor, Richardson Electronics Ltd., LaFox, Ill., three years after dropping it. This move comes on the heels of the company's reversal of a long-held policy prohibiting its distributors from carrying Asian semiconductor lines. That policy itself had been eased in 1997, when Motorola agreed to allow its distributors to carry a single Asian line, but no more than one. All of these changes happened in the shadow of a large scale corporate restructuring.
In announcing the Richardson deal, Motorola SPS senior management cited Richardson's global presence in radio frequency (RF) products, technical sales force, and microwave and wireless markets as reasons for adding Richardson as its global RF-focused distributor. Asked about the changes in its distribution strategy, Alberto Macchi, Motorola SPS director of distribution sales, noted the company has changed significantly and that it sold its high-volume commodity component business to Texas Pacific Group.
"Three years ago we were selling high-tech and commodity products," Macchi said. "Now we only have high-technology products." And the company's distribution needs have changed. "There's no need to be in the high-volume market. There's no fight anymore to get our share of shelf space. Our priority now is demand creation, and to find distributors to go drive the market. More and more we are asking our distributors to create demand for us," Macchi added.
"Motorola obviously has gone through a lot of soul searching in regards to its entire semiconductor operation over the last year or two," said Clarke Walser, distribution analyst and principal with Walser & Associates in Arlington Heights, Ill.
Motorola's change in product mix created the need for a specialty distributor, Macchi added. "We need dedicated resources and dedicated knowledge," he noted. Walser said, "They recognize that the big broad-line distributors couldn't do the job in this specific area that Richardson could do for them. Being a product specialist, it's easier to tell (customers) who you are.
Motorola continues to revamp its product portfolio in a bid to address larger market segments. Increasing its range of products from mere 10 in mid 2005 to 30 products, Motorola now has a product for every price point. It launched its entry level Motofone. Its Motofone brand of GSM phone is available at Rs 1,650, while the cost of CDMA phone is Rs 1,299. Motorola launched four entry-level phones in April 2007. Apart from the low-end, it has introduced a comprehensive range of mid-range and high-range devices. Apart from handsets, Motorola has introduced products to cater to Bluetooth segment.
We are focusing products based on the needs of the market'
This can be some questions regarding the distribution strategy of Motorola:
1)How has Motorola India performed in FY '06-07?
Motorola India revenues grew considerably. There was a huge growth in revenue with the revival of the handset business. In the connected home space of cable and DTH we have made some beginning and real growth is planned for 2008, as people have started to move from analog to digital.
2)Things don't look too rosy for you in wireless infrastructure.
What are your plans?
In the area of cellular infrastructure we have some setbacks but we still retain footprint in with major operators. Operators believe that the future is with the wireless broadband (3G and WiMax). And we are well positioned, both with respect to technology and product. We have a relationship with every operator, and we plan to grow significantly in 2008.
3)Motorola has done exceptionally well on mobile handsets. What were the reasons for your success?
In mobile handsets there were three key points. First, reorganizing the Indian market as it has unique requirements and one has to leverage in terms of software customization with respect to user interface and application. Second, we significantly strengthened our distribution channel to increase our reach. Third, we stepped visibility in the consumer space through brand ambassadors and innovations. We are focusing products based on the needs of the market.
4)There has been a lot of talk about WiMax, CDMA, EV-DO, and WCDMA. How do you see these technologies in FY '07-08?
Our next big thrust is broadband/entertainment TV to the home. We are also looking at connected homes and we have the visibility in devices. We have a huge role in terms of new technology to the consumer such as WiMax CPE and phones. In the initial stages any box will do but later world class products and brands make an entry. We are banking on handset to leverage on these two fields, and it is operator driven as well as channel driven. It will be a new game for everyone and has to be played sensibly.
On the branding front, Motorola is focusing on the India appeal. It wants to build a strong India connection. It has revamped its marketing strategy and instead of product focus it is personality focused. Motorola is promoting itself as a youth brand and the emphasis is therefore on the color and design.
On the network front, Motorola has bagged MTNL contract for the supply 2G/3G cellular network for Delhi. Motorola has got orders for 2 million lines and will take care of network deployment and maintenance services. The company also got expansion orders from BSNL.
A number of important investments in manufacturing and R&D, and its focus on distribution, product, brand and partnership strategy has made Motorola an aggressive player in the Indian market, though a long way to go.