Motorola SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and
the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely
used technique through which managers create a quick overview of a company’s
strategic situation. The technique is based on the assumption that an effective strategy
derives from a sound “fit” between a firm’s internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A good fit maximizes
a firm’s strengths and opportunities and minimizes its weaknesses and threats.
Accurately applied, this simple assumption has powerful implications for the design of a
successful strategy.”
Motorola
Motorola builds and markets products, services, and applications that
make simple and seamless connections, information, and entertainment possible
through broadband, embedded systems and wireless networks. The company
operates through three business divisions: mobile devices, network and
enterprise, and connected home solutions. Motorola has strong technological
capabilities. Motorola was one of the early advocates for WiMAX 802.16e as the
technology has the bandwidth to deliver the multimedia experiences at a fraction
of the cost of 3G technologies. Stiff competition across its operating segments
could adversely affect the company's market share and profitability.
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Motorola SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Weaknesses
¾ Strong focus on
WiMAX
¾ Declining cell phone
market share
¾ Strong brand
¾ Weak profitability
¾ Robust manufacturing
¾ Customer
capabilities
External
Unfavorable
Opportunities
¾ Separate mobile
devices segment
concentration
Threats
¾ Intense competition
¾ Environmental,
¾ Strategic acquisition
health and safety
¾ New contract wins
laws
¾ Research in
nanotechnology
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¾ Credit ratings