Restructuring / Turnaround Strategies Case Study

Motorola’s Revival Strategy

Abstract:

The case study is about the revival strategy launched by the C.E.O. Ed Zander (Zander) of Motorola in 2006. The company designed manufactured and marketed cellular /mobile phones and was a leading US mobile player. In 2006, the company was experiencing growth in number of units sold and revenues as compared to the previous year but there was a decline in the profits of the company.

To address drop in the profitability of the company, Zander was launching various initiatives. Zander unveiled a three-step revival plan which included rationalization of workforce - eliminating about 3500 jobs mostly in the middle management, thereby reducing costs by $400 million by the end of 2007. The second step required Motorola to become more selective about the markets in which the company planned enhancement in its market share. The third and final step involved new product development focused on consumer preferences and current market trends.

Pedagogical Objectives:

• An overview on changing trends in Cellular / Mobile phone industry
• To analyse Motorola’s decline
• To analyse effectiveness of Motorola’s revival strategy
• To understand the importance of new product development in Cellular / Mobile phone industry.

Keywords : Motorola; US mobile phone industry; Ed Zander-new CEO; Razr; Krzr; Siv; Pebl; Rok; Motoslim; Restructuring / Turnaround Strategies Case Study; MOPtoMing; Motorola Q; Zander's new revival strategy for company; Step Revival Plan