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Motorola in China |
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"Motorola wants to be a purely Chinese company. We want to be more Chinese than local companies." - Lai Bingrong, Senior Vice President - Motorola Inc., President - Motorola (China) Electronic Co., Ltd. in 2000.1 "China is one of our most important crucial markets and we are still the first and largest US business in operation there." - Fred Harburg, President, Motorola University, in June 2002.2 "There is a lot of trust on the Chinese side because Motorola has put a lot of investment into the country." - Crag Watts, Analyst - Norson Telecom Consulting, in January 2003.3 <The Chinese FactorMike Zafirovski (Zafirovski), President and Chief Operating Officer (COO) of Motorola, said, "China is a very, very significant partner and the market here is very important for Motorola worldwide as well as a manufacturing base and research centre for the company."4 Motorola's Chinese venture seemed to have been successful. In 1999, Motorola was ranked second, behind Volkswagen5 in the Fortune's6 list of most favored foreign enterprises in China. Analysts felt that Motorola's performance in China was incredible, considering the country's difficult social and political environment. It was successful in penetrating the Chinese market and was the leader in the Chinese mobile handset market, with a share of over 20% by early 2000s. According to company sources, Motorola was successful in China due to its understanding of the market and the people and because of the strategies it adopted. However, analysts were skeptical about Motorola's success in China in the future on account of increasing competition from both local and foreign players in the mobile handset market, which was an important product segment for the company. With the growing demand for cell phones and saturating markets for other consumer appliances, many Chinese consumer appliance companies also entered the mobile handset business thus increasing the competition for multinational companies such as Motorola.
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1] Donghui, Yu, Why Motorola Invested Additional RMB16 Billion in China?, www.ultrachina.com, September 29, 2000. |
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