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Motorola Strategic Management Assignment Focusing On Competitive Advantage, Relevant Value And Cost Drivers


Task: which research methods can be used to prepare a Motorola Strategic Management assignment that identifies changes adopted by the brand in 2003 and from what old type to what new type of strategy did they change


This Motorola Strategic Management assignment on how management strategies are specifically designed on the basis of capturing the large market and in terms of gaining an effective competitive advantage. The essay predominantly focuses on the different strategic perspectives of Motorola along with these it illustrates the value chain model that Motorola uses in its business activities. Within the dramatic and dynamic marketplace, Motorola was considered as the market leader in the year 2003 when it came to their innovation capacities and through their innovation strategy, the organization was considered as the major market leader within the mobile phones business and wireless infrastructure.In order to illustrate the strategic change in the year 2003, it is vital to explain that Motorola faced a massive operational breakdown due to the huge presence of various Korean and Chinese mobile sets that also offered similar product characteristics at a lower price (, (2003), 2022). This Motorola Strategic Management assignment analyses strategic change of Motorola between 2003 and 2007 including the value chain analysis.


2. To what extent did Motorola change its strategy in 2003 -- and from what old type of strategy to what new type
The management of Motorola Company faced the problem of decline in profit performance and market share during the year 2003 (, (2003), 2022). The issue has been created as a result of the ineffective pricing of the Motorola model. Furthermore, models were not good according to the price and it hence, it can be stated that the company has faced problem in terms of pricing and innovation strategies. The wrong strategies dropped the market share of Motorola and this has developed a major issue in the operating margin of the organization. The company has faced the problem at the low end where Koreans and Chinese were dominating the standard Motorola Model.

In order to overcome the above-mentioned issue, the company has adopted the strategy of differentiation of products. The ultimate objective of the company was to improve the quality of products. Furthermore, the entity has trimmed the cost per handset by 20% and it has decreased the price of the product by 13% (, (2003), 2022). Hence, in order to sell new featured phones, Motorola has considered pricing and differentiation strategies and it enhanced the quality of service of the company in the next few years. The development of these strategies helped the company to improve the value chain performance of the entity.

3. Value Chain identified on this Motorola Strategic Management assignment

The value chain structure of Motorola is considered as the analytical structure that assists in terms of understanding the business activities that can form the business value and competitive advantage. The supportive and primary activities of the value chain are discussed below.

Support Activities
Firm Infrastructure: The Company had a good infrastructure including the effective supply chain management system. The change in pricing strategy has helped the company to overcome major issues
Human Resource Management: Efficient labour of the company had changed the strategic performance of Motorola after 2003. The well-trained and experienced human resources helped the company to overcome the issue in the year 2003 (, 2022). Technology: Analog and digital two-way radio were two technologies of the company Motorola and furthermore, the organization used RFID solutions to the customers worldwide.

Procurement: In the case of procurement, the organization focuses on trusted and reliable suppliers. However, on this Motorola Strategic Management assignment it has been identified that in 2003, the company could not enhance a good procurement system.

Primary Activities
Inbound Logistics: The key inbound logistics process of the company includes transportation, receiving of goods, and storage. The company focuses on an effective transportation system.
Operations: The operations of the entity include entire operating activities and sourcing of suppliers. The entire supply chain management system has been controlled based on an effective operations management system. Outbound Logistics: It includes the shipping of finished products from the warehouse to the distribution Centre. The organization Motorola considers the proper shipping of finished products so that the same can be reached to distribution Centre. Marketing and Sales: During the year 2003, the company considered television channels and offline media in order to ensure the marketing of products. On the other hand this Motorola Strategic Management assignment also identifies that the entity had used T.V and radio as sales promotional tools during 2003.

Service: The service part of the company involved during the year 2003 was express logistics, reverse logistics and return logistics.

Annotated List


Value Drivers

Cost Drivers

Existing Advantage

Seeking Future Advantage


Pre  and the year 2003







Product quality

Effective sourcing of suppliers

Stable competition

Develop market share

Profit of Motorola was decreased

High End Products

High quality and value to the customers

minimization of cost of different parts of model

stable customers

Enhance customer base

High end product could not reach market in Europe

Drop in Market Share

Decrease in Profit

Increase in cost of materials

Stable market growth

Increase in the share in perfect competition

Market Development and Market Expansion

Post 2003







Customer base development

Labour Cost


Stability of quality in reasonable price

Market enhancement

Motorola Strategic Management assignment Evaluation and comments on the execution of company’s strategy from 2003-07

The main problem that has been faced by Motorola during the year 2003 was pricing and this had completely damaged the performance of the company. The issue was faced in the case low end products in Latin America and high end products in Europe. The differentiation strategy had been successfully implemented by the company from 2003 to 2007. However, in the high competition with Samsung and Nokia, the organizational profit had been tumbled and the company reputation is damaged. Furthermore, TQM and Six sigma techniques had been followed by the entity and it had helped the entity to enhance the performance of supply chain management. The strategic alignment had been tried to be implemented by the management of the company during the year 2007. After collapse of market share in the 2003, the entity had focused on the development of innovation and the main consideration of the company was disruptive innovation. Hence, after the year 2003 the main target of the company was to develop the product performance. On the other hand, new platform had been considered by the management of Motorola and this was considered to enhance the performance in the high end market. The strategic perspective of Motorola between the periods of 2003 to 2007 was based on increasing their innovation capacities and the organization (Goldman, 2021). On this Motorola Strategic Management assignment it has been observed that in 2005 Motorola also became one of the major suppliers of wireless infrastructure products. The organization also focused on the innovative technologies that needed a high level of investment within the research and development activities. Hence, Motorola has reformulated two major strategies including product differentiation and Innovation after 2003 and within 2007.

The management of Motorola has focused on the development of strategic performance based on differentiation strategy for both high end and low end products. From the above discussion, it can be concluded that the business strategic objectives of Motorola during the period of 2003-2007 were based on expanding their innovation capacities, and in terms of value chain analysis, the organization also focused on its innovation capacities, which helped the company to stay ahead from their competitors. In addition to that, the study also illustrated the strategic shift of Motorola between the periods 2003-2007 and focused on the strategic components that the organization prioritizes within their business activities. The development of innovation strategy discussed on this Motorola Strategic Management assignmenthas helped the company to maintain stability of market from the year 2003 to 2007.

References 2022. Bloomberg - Are you a robot. [online] Available at: [Accessed 27 January 2022]. (2003) 2022. [online] Available at: [Accessed 27 January 2022].
Goldman, M., 2021. Last Chance: The Motorola Microprocessor Story. IEEE Micro, Motorola Strategic Management assignment, 41(06), pp.148-149.


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