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Essay / Research Paper Abstract
A 6 page paper discussing Motorola's history in China and its loss of wireless handset market share in the early 2000s. The paper recommends that the company focus on long-term profitability, in the form of working to increase market share now and then preserving the market share it is able to gain. In no event should the company allow competitive pressures to force it to market with an inferior product as it did in the US with the low-end Razr. Bibliography lists 3 sources.
Page Count:
6 pages (~225 words per page)
File: CC6_KSchinMotorola.rtf
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Unformatted sample text from the term paper:
Robert Galvin, CEO of Motorola at the time of his visit to China in 1986, "was convinced that Deng Xiaoping was serious about modernising" (Sethi and Farhoomand, 2005; p.
5) China and its economy. Entry into China was difficult at the time in that Chinas general technological position was more than 30 years behind the developed world, and
the government required that any foreign business partner with a local company in the form of a joint venture. Deng Xiaoping was indeed serious about modernizing China, but not
to the point of allowing foreign companies to cart away the profitability inherent in such growth or radically changing Chinese culture. Its problem at the time in which the
case is set (2005) is how to regain market share, increase profitability and decide how to (or whether) to deal with third generation (3G) technology in the Chinese market. Discussion
Questions 1. How did Motorola retain its position as market leader for the first 20 years of its operations in China? Motorola profited well
throughout the 1990s and particularly in the late 1990s during a period of exponential growth in the cellular telephone market. Motorola enjoyed first-mover advantage for a long while, but
European competition and finally local competition seriously reduced Motorolas market share. 2. What were the forces that contributed to the erosion of it competitive advantage? Training the Chinese
At the time that Motorola entered China, the fact of increased competition in the future was a certainty. Rather than be protective and secretive about
its business and its approach to its business, Motorola set out to be transparent and truly contribute to Chinas economy and gains in technology. In so doing, it "inadvertently
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