Reviving Motorola - The Zander Way

            
 
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Case Details:

Case Code : BSTR197
Case Length : 19 Pages
Pages Period : 1995-2005
Organization : Motorola
Pub Date : 2006
Teaching Note :Not Available
Countries : US
Themes: Corporate Turnaround
Industry : Consumer Electronics

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Background Note

Motorola began as Galvin Manufacturing Corporation in 1928, after Paul Galvin and Joseph Galvin acquired the assets of a bankrupt company, Stewart Storage Battery Company. The company introduced Automobile radio in 1930, which was named Motorola. The product went on to become so famous that the company subsequently adopted the name Motorola.

In 1941, Motorola introduced an AM7 radio, followed by an FM8 radio in 1943. During the Second World War, Motorola diverted its resources to war efforts and produced handie-talkies and walkie-talkies for the US armed forces. By the end of the 1940s, Motorola introduced taxi and fleet management radio systems. In 1947, Motorola entered the television market and its first television was Golden View Model VT71, of which over 100,000 sets were sold in one year. The semiconductor development group of the company was started in 1952, and it introduced power transistors. The first transistorized auto radio was introduced in 1956. In 1958, Motorola introduced 'Motrac' radio, which was the first vehicular two-way radio; the X11 pocket radio was launched in 1959.

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After Paul Galvin's death in 1959, Robert Galvin assumed the CEO's responsibility. By 1965, with a decline in costs, semiconductors found many takers especially in the area of consumer electronics. Gauging the demand, Motorola came up with low cost plastic-encapsulated semiconductors.

In the same year, it came up with eight track tape players and pagers called Pageboy. In the mid-1960s, Motorola expanded into international markets, establishing sales and manufacturing operations in countries including Australia, Canada, France, Hong Kong, Israel, Italy, Japan, Mexico, Malaysia, Puerto Rico, South Korea, Taiwan, the United Kingdom, and Germany.

In the 1970s, Motorola faced increasing competition from Japanese companies in consumer electronics business. The company sold off the television division to Matsushita in 1974. In the same year, it launched the 6800 microprocessor, which was capable of completing two million calculations per second...

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7] AM radio is radio broadcasting using Amplitude Modulation. The AM receiver detects amplitude variations in the radio wave. It then amplifies changes in the signal voltage to drive a loudspeaker or earphones. Because of its susceptibility to atmospheric interference and generally lower-fidelity sound, AM broadcasting is better suited to talk radio and news programming.

8] FM radio is a broadcast technology that uses frequency modulation to provide high-fidelity sound over broadcast radio.

 

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