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Motorola (SWOT Analysis)

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“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.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong focus on WiMAX
  • Strong brand
  • Robust manufacturing capabilities

Weaknesses

  • Declining cell phone market share
  • Weak profitability
  • Customer concentration

External

Opportunities

  • Separate mobile devices segment
  • Strategic acquisition
  • New contract wins
  • Research in nanotechnology

Threats

  • Intense competition
  • Environmental, health and safety laws
  • Credit ratings
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