Motorola and Globalization

Motorola is an electronic communications pioneer and is one of the foremost designer and manufacturer of cellular phones, cordless phones, two-way radios, pagers, cable modems, broadband set-top boxes, and other communications products and systems. About 60% of its sales are from outside USA. Motorola has followed the global strategy for several decades and has used this strategy to increase business revenues.

The company started to enlarge its operations outside the United States by building a plant in Mexico and marketing Motorola products in eight countries, including Japan. In 1961, an office was opened in Japan and in 1968 Motorola Semiconductors Japan was formed to design, market, and sell integrated circuits.

There was an ongoing attention to   globalization by Motorola on Asian, Eastern European, and Latin American markets in the early 1990s. In 1993, the company announced 'Corporate America's biggest manufacturing project in China': two plants for the manufacture of simple integrated circuits, pagers, and cellular phones. The changes at Motorola are part of a wider movement in American business  Most companies, including Motorola, are also increasing their importance on creativity and innovation, as globalization has led to increasing competition from low-cost rivals from abroad ..

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According to its CEO Ed Zander, “In order to compete successfully in today's global world, companies must invest in the countries they do business in, learn the ins and outs of doing business in those countries, and not view them as simply a source of cheap labor”. With such global strategy, Motorola has acquired a presence in the global market that goes further than a few marketing maneuvers.

Together with Global strategy, it has inherent sincerity about supporting its customers and training its employees which have pervaded its policies as well as its budget  Motorola has  focused on customers and relationships, a respect for the work force and a strict sense of responsibility.. All of these strategies have led to its success and today Motorola is the world’s number 2 in sales of cell phone.

http://www.businessweek.com/magazine/content/05_32/b3946103_mz063.htm

Ed Zander on Motorola’s tech Turnaround,11/28/2005 , Working Knowledge for business leaders Archives

Retrieved on 6/12 /2007

http://hbswk.hbs.edu/archive/5113.html

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