Even though Nokia has always been the global leader in cell phone manufacturing and sales, Motorola is still the number one choice of US consumers. So, while Nokia rules the global cell phone market, Motorola still dominates the biggest market in the world – the US market.
In every industry there is the world market and the US market. It is difficult to truly be considered a success unless you have conquered both. Even David Beckham – arguably the most famous athlete in the world –felt the need to come to America and attempt to conquer the US market. Motorola, the first mass producer of the cell phone, has lost its grip on first place in the global marketplace, but retains a firm hold on the most visible market – the United States. Motorola's secret to success involves a consistent understanding of what the market needs, coupled with innovative technological developments and timely strategic alliances.
The $40 billion cell phone giant's roots grew out of a small shop selling electrical cords that allowed battery powered radios to plug into wall outlets. Over the years, Motorola developed the philosophy that success is a process rather than a destination and pursued a policy of quality and continued improvement in every aspect. This corporate philosophy led Motorola through successful introductions of car, police, and home radios in the 1930s, and television diodes and transistors as market needs evolved in the 40s and 50s. Motorola's belief in reinvention and adaptability drove the company to introduce the first cell phone in April of 1973, when Motorola manager Martin Cooper placed the first public cell phone call as he walked down the street in New York City.
Motorola also instituted an employee training program called <a href=” http://www.motorola.com/motorolauniversity.jsp”>Motorola University</a> where all training takes place to ensure a consistent experience and message. Thanks to this level of continuity, Motorola has been able to maintain a consistent a consistency in quality and gain a better understanding of the US customer and marketplace.
The three guiding principles of Motorola University are the same principles that have kept Motorola the US market leader:
- Learning and change go hand in hand – the company must be able to easily adapt to changing trends in the marketplace.
- Innovation is much more likely to occur when people participate in the solution rather than having it handed to them; customer needs will always drive innovation and product development.
- Balance is necessary between single-mindedness of purpose within the organization and extending the frame of reference to the outside world.
Constant adherence to these guiding principles has kept Motorola the most popular cell phone provider in the United States. The <a href=”http://www.wirefly.com/catalog/t-mobile/motorola/black-razr-with-myfaves/”>Motorola RAZR</a> is still the most successful cell phone ever – selling more than 50 million phones in just over two years. The different generations and versions of the RAZR, including designer versions from Dolce & Gabbana, as well as iterations updated with current features (including the KRZR and the RAZR Maxx) have kept Motorola and the RAZR at the forefront of the cell phone world. The upcoming <a href=”http://www.wirefly.com/catalog/at&t/motorola/razr2-v9/”>RAZR 2</a> has created quite a buzz among cell phone industry insiders and consumers alike. Motorola's unparalleled success with the RAZR was unanticipated and is envied even today by other cell phone manufacturers.
The growing US cell phone market - combined with the level of discretionary income in America - makes it an attractive target for all cell phone manufacturers. The cell phone industry in the US is also driven by the service providers (or carriers), and their cell phone plans and contracts that tie the customer to a commitment to use a phone for a certain period. As a result, cell phone manufacturers create alliances with carriers to help market their products. Motorola has been extremely savvy in their strategic alliances and has shied away from tying themselves too heavily to one carrier – providing consumers with the widest array of choices.
Motorola's lead in the US cell phone market will be difficult for any manufacturer to overcome, especially if the RAZR 2 does as well as previous versions.
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