Motorola, Inc.

Paper Summary:

In 1995, Motorola stood at number 29 in the Fortune 500, where today it stands as number 59. Motorola is a company that has changed the nature of its core business several times over its history, but it remains a business devoted to different forms of consumer electronics, with annual sales currently at $26,690,000,000. The paper shows that Motorola was once the clear leader in the cellular phone field, but the company is now battling Nokia and Ericsson for the top spot among mobile phone makers. The paper looks at the reasons for Motorola's failure in the market, including being 'technologically behind' its competitors.

From the Paper:

"For years, Motorola Inc. had supplied virtually all the wireless phones to Ameritech Corporation. When the time approached to switch to the new digital technology, however, Motorola was not ready. Therefore, in the summer of 1997, Ameritech started its digital service using phones from rival Qualcomm Inc., a San Diego company. Ameritech Cellular's director of product marketing said he simply could not wait for Motorola to get ready. This is only one such case showing how Motorola has been falling down on the job: Instead, one of the world's most admired companies, known for cutting edge technology and gold plated quality, is coming up stunningly short these days. The former trailblazer in two way radios, cell phones, pagers, and computer chips has missed a digital beat and now finds itself scrambling to catch up. Even then, its products don't always pass muster. In 1994, Motorola claimed 60 percent of the U.S. market in wireless phones, according to Herschel Shosteck Associates. Today, it has 34 percent (Crockett & Elstrom, 1998 p. 140)."

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