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Summary

There are some issues that the Motorola cannot see their cores of the problems. In the solutions they have suggested, they have only story about the company not about the product and customer.

Not 'company', but 'product'

According to article 'Motorola: It's the phone' in Fortune, "The problem is the phone not the business. Separating the company cannot solve the problem." It is a critic about Motorola's action which is centered in developing the company not in superior competitive or using human sources.

Not 'RAZR', but 'platform'

It is down on Motorola's philosophy of product. Motorola made a 'RAZR' which has been a star mobile phone in the world but they missed platform which could make efficient and systematic mobile products. When Motorola made 'RAZR', Nokia has mastered the know-how of software platform and have enlarged a market share. The key to success of business was proven that it is the pursuit of standard and efficient not the event in success of one product.

Not '20th Century', 'but '21st Century'

The company which plans their blue print by understanding 21st employees can remain, but the company which concentrates on 'asset value' not on 'a man of ability' will go down. Motorola is expected that they are going to spent lots of time finding a new leader of separated mobile phone branch and setting up the company.


Opinion

In modern market it is required that the understanding of a man of ability and having a innovation process together.

There are a lot of temptations like short-term company's evaluation, the success of product, decision according to the profit and power.

According to a text ‘Strategic Management (Charles W.L. Hill & Gareth R.Jones)’, to have a competitive advantage, there are four building blocks.

First, ‘Superior efficiency’ can make it. The more efficient the company is, the fewer the inputs required to produce a given output.
Second, ‘Superior quality’ can make it. A product is said to have superior quality when customers perceive that its attributes provide them with higher utility than the attributes of products sold rivals. Quality is just as relevant to services as it is to goods.
Third, ‘Superior innovation’ can make it. Innovation refers to the act of creating new products or processes. Process innovation is the development of a new process for producing products and delivering them to customers. They give company something unique – something its competitor’s lack.
Last, ‘Superior customer responsiveness’ can make it. A company must be able to do a better job than competitors of identifying and satisfying its customers’ needs. Customer response time takes for a good to be delivered or a service to be performed.


- 20500018 Entry # 4