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Motorola Marketing Strategy Analysis Of Motorola With Introduction, Situation Analysis, Swot Analysis, Problem Analysis With Entering Bottom Of Pyramid Market.

2174 words - 9 pages

Bottom Of Pyramid Case StudyIntroduction & Situational Analysis:Motorola, Inc. provides technologies, products, and services for mobile communications. It operates in three segments: Mobile Devices, Home and Networks Mobility, and Enterprise Mobility Solutions (Motorola.com 2008). The case study focus is of Motorola's mobile device technology, where it holds 2nd place after Nokia for world market share at 17.9% in mobile sales (ElectricNews.net, 2007).The market place at the bottom of the pyramid represents around 4 billion people which holds a purchasing power of up to $14 trillion. Motorola recognized this market segment and in response looked at manufacturing a low cost cell phone that meets the needs and requirements of this market segment. Motorola has developed the C117 handset in partnership with the GSM Association, which represents operators worldwide in an attempt to overcome the principal barrier to mass phone ownership - price.The C117, low cost handset is expected to be the first of a family of low-cost phones to be produced and is sold for less than $40 at wholesale prices, with an extended battery life to suit those without convenient access to electricity (Hunt, B. 2005). GSMA estimates the C117 will open mobile phone ownership to more than 700 million new consumers across Asia, Latin America, the Middle East and Africa if it can further reduce its price below $30 (Hunt, B 2005).The chief executive of Motorola Ed Zander said "connecting the unconnected with new ultra low-cost, high-quality, beautifully designed handsets is a critical component of Motorola's growth strategy and is the right thing for us to do as a good global citizen" clearly positioning this as both a growth opportunity and a social benefit. Mr Zander has clearly seen the opportunity which exists in the developing world where subscriber growth is booming and the fastest growing growth rates are found in Africa. Already, 80% of the world's population lives within range of a mobile network however, only 25% have a mobile phone handset (Unknown, 2005).SWAT AnalysisStrengths-Well established brand with close to 20% world market share and $42.9 Billion US in sales in 2006 (Jaroudi, L. 2007)-The world's second largest Mobile phone manufacturer (Hunt, B. 2005)-Large factory bases to take advantage of economies of scale to produce quality mobile phones at extremely low cost-Main offices located in Asia, India, Latin America and Israel, allowing for close operation to target markets at bottom of pyramid (Motorola.com 2008).- Established deal with GSM Association that won the rights (out of 17 competitors) to supply low-cost mobile phone under the Emerging Markets Handset Program in 2005 to 700 million consumers in Asia, Latin America, Middle East and Africa (Hunt, B. 2005)Weaknesses-Lack of operation in regional areas where high percentage of target market is located-Main focus of company is to be benchmark of innovative technology, therefore company not structured to...

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