Motorola- The rise and fall of one of the biggest company
Motorola Inc. was founded on September 25,1928 as Galvin Manufacturing Corporation in Schaumburg, Illinois. Starting off with selling products like battery-eliminators, first hand held walkie talkie to the first commercial cellular device. It has held a vast empire for almost 88 years. The company was in its peak during the first half of 2000’s but soon lost its popularity towards the end of the decade. Many people think that the reason for its downfall was its reluctance to shift to android based devices. But the journey of Motorola and its rise and fall is still a fascinating story.
Brothers Paul V and Joseph E. Galvin purchased the bankrupt Stewart Battery Company in 1928. They changed the name of the company to Motorola when they released radios for cars. The new name was formed by linking “motor” with “ola”(from Victorola) which was a popular end name for companies at that time. With wide variety of products and research, Motorola launched its first cellular phone in 1973 and dominated the industry till 1998 when it was overtaken by Nokia.
Early 2000 saw the release of Motorola Razr. It almost sold around 120 million units in its series. The phone with its unique style was an instant hit. But after that it saw a sudden decline. After having lost $4.3 billion from 2007 to 2009, the company was divided into two parts. Motorola Solutions which is considered as a direct successor to Motorola and Motorola Mobility which was bought by Lenovo in 2014.
Lack of innovation by Motorola
This has to be the biggest reason why the company lost its business. When competitors like Nokia, Samsung came out with pretty innovative designs Motorola did not bring about some out of the box products. Blackberry and Apple had brought about game changing phones while Motorola sat back defending Razr.
Not turning to 3G
The consumers of the consumers dearly wanted the 3G services. However, its consumers rejected the change to 3G and the company stuck to its old services. The lack of 3G service impacted Motorola in a huge way.
Reluctance in making Android based phones
They opted to make Android based phones pretty late and their business suffered. Android had become a huge rage and Motorola took their sweet time in opting the same.
Running at their own pace
Motorola has always worked at their own pace. Compared to other phone manufacturers in the market who moved at warp speed, Motorola had its own slow business. They took a lot of time in executing their concepts.
USA focused market
Personally, I felt that Motorola had built an US empire but failed to do that all over the world. Its market was pretty much US dominated but did not leave such a huge impact elsewhere.
Motorola that started off as a small development company reached huge heights achieving some of the biggest titles. But due to its execution faults and selling off its major businesses the company suffered. The fall off such a big giant reminds that even the greatest can fall and even the strongest can fail. Motorola Mobility is now producing phones under Lenovo with phones like Moto E, Moto Z being a huge success.