Restructuring / Turnaround Strategies Case Study

Motorola – Losing its 'Razr's' Edge

Abstract:
Motorola, world’s second largest player in Cellular Industry, gained a significant market share in 2004 backed by its successful products and managed to sustain growth for a while with new versions and derivatives of Razr, one of its most successful cell phone models. However, the company failed to develop innovative products that could replicate Razr’s success and lost out to its competitors who developed innovative products. The case outlines the dynamics of the global mobile phone/cellular Industry, Motorola’s earlier turnaround, its earlier success with Razr phone, causes for its decline in phone/cellular industry, its initiatives to stem the decline and its new growth strategy.

Pedagogical Objectives:

• The dynamics of global cellular industry
• Importance of product innovation in cell phone industry
• How innovation helped Motorola gain an edge over its competitors
• The reasons behind marketing failures of Motorola’s ‘Razr’ phone.

Keywords : Motorola’s Decline; Telecom Industry; Motorola Razr; Managing in Troubled Times Case Study; Handset Market; CEO Edward Zander; Razr’s Rise; Razr’s Decline; New strategy of Motorola