MOTOROLA HAS HIGH ASPIRATIONS FOR ITS CHINA BUSINESS
• Targeting sales of US$ 10 billion in China by 2019/2019 • Focusing production operations in China, as production
since 2019. Its products are more function-driven compared with Nokia’s products, which are more fashion-driven
• Motorola takes more than 50% of the share in the high-end and
Fixed line network equipment
Source: Motorola website
• Set up representative office in 1987 • Operations include:
– 1 holding company – 1 WOFE – 8 joint ventures – 26 subsidiaries
5. Organization and ownership
• Organization structure • Ownership structure
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3. Product /market
• Key product offerings • Key customers • Value proposition • Geographic focus • Pricing
MOTOROLA’S HANDSET STRATEGY COMBINES AN ATTRACTIVE PRODUCT RANGE WITH SUPERB VALUE CHAIN MANAGEMENT
• Developed a wide product range which covers all key
• 12,000 employees • US$ 3.4 billion total investment to date
5
STRATEGY
1. Background information
• Location
• Starting year
• Registered • Number of
capital
• Motorola’s market share is relatively consistent across tier-cities
and geographies, taking approximately 30% everywhere
9
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MOTOROLA HAS RECENTLY FOCUSED ON BUILDING OUT ITS LOW-END PRODUCT PORTFOLIO
• Management • Era analysis
team
• Equity
structure
4. Value chain strategy
• Focus on
– Marketing, advertising and promotion
– Distribution (channel and sales force)
and improve time-to-market
• Closely managed first-tier group of nine resellers in
order to minimize price competition and facilitate order tracking
Core competencies
team
• Equity
structure
4. Value chain strategy
Focus on
• Marketing,
advertising and promotion
• Distribution (channel
and sales force)
2. Strategy
• Mission • Vision • Corporate strategy • Market position
3. Product /market
• Key product offerings • Key customers • Value proposition • Geographic focus • Pricing
6. Financial performance
• Sales • Profit
6
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CONFIDENTIAL
Mobile Handset Competitor Profile: Motorola
SAMSUNG ELECTRONICS CHINA (SEC China)
August 20, 2019
This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.
Product positioning Jun 2000
Business/professional
Personal
High
V8088 (1.6%) V998 (5.6%)
Motorola China
Wireless communications
Mobile handsets
Network equipment
Pagers
Two-way radios
Semiconductors
Auto electronics and
accessories
Mobile network equipment
Product range price points and offers a wide range of functionality
Value chain
• Invested heavily in product localization through China-
based R&D team
• Expanded local manufacturing in order to reduce costs
1. Background in来自ormation• Location
• Starting year
• Registered • Number of
capital
employees
• Management • Era analysis
team
• Equity
structure
4. Value chain strategy
2. Strategy
• Mission • Vision • Corporate strategy • Market position
5. Organization and ownership
• Organization structure • Ownership structure
010417SHELM038JL_RAJv5i
5. Organization and ownership
• Organization structure • Ownership structure
010417SHELM038JL_RAJv5i
3. Product/market
• Key product offerings • Key customers • Value proposition • Geographic focus • Pricing
OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK
1. Background information
• Location
• Starting year
• Registered • Number of
capital
employees
• Management • Era analysis
3. Product/market
• Key product offerings • Key customers • Value proposition • Geographic focus • Pricing
6. Financial performance
• Sales • Profit
3
010417SHELM038JL_RAJv5i
employees
• Management • Era analysis
team
• Equity
structure
4. Value chain strategy
• Focus on
– Marketing, advertising and promotion
– Distribution (channel and sales force)