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Case Study History and Strategic Analysis of Motorola Inc

Strategic Analysis of Motorola Inc

The company that I chose to complete my Strategic Analysis on is Motorola Inc.. Many of us are familiar with Motorola products due to the advent of the cellular phones. Regardless of the carrier of the service, be it Verizon, AT&T, Sprint, many of these companies use a cellular device created by Motorola. However, the company does much more than just producing cell phones. One area that Motorola is trying to focus its current strategic actions in the area of Semiconductors.

History/Financial Portfolio Motorola Inc. started with the founding of the company by Paul V.Galvin (figure 1). Paul and his brother Joseph E .Galvin purchased a battery eliminator business from Stewart Storage Battery Company which made battery eliminators used in operating radios using household current in 1928 and created 'Galvin Manufacturing Company'. The company started with five employees and grew gradually. It expanded its business into automobile industry, by introducing auto radios sold to independent auto distributors and automotive dealers. With Galvin Manufacturing Company entering into the auto industry, Paul V. Galvin coined the word Figure 1 'MOTOROLA' linking motion and radio.

Daniel E. Noble joined Galvin Manufacturing Company in 1940 as Director of Research. As a pioneer in FM radio communications and semiconductor technology he originated the first hand-held two-way radio for the Connecticut State Police. He brought his designs to Galvin Manufacturing Company and developed a two-way radio system for the U.S. Army Signal Corps. Because of this, Galvin Manufacturing Company played a significant role in World War II with radio and communications equipment like the "walkie-talkie" (figure 2) and "handie-talkie".

The first public stock offering occurred in 1947. The company's name was officially changed to Motorola Inc. In 1948 Motorola entered into the television business and with more than 100,000 of these TV sets sold in one year, Motorola catapulted into fourth place in the television industry. During the late 1940's Motorola began to supply auto radios to Ford and Chrysler plants for installation in their automobiles.

Motorola introduced dispatcher radios by taking advantage of expanded allocation of radio frequencies and with aggressive marketing and a reputation for reliable equipment earned a leading role in the industry. Daniel E. Noble launched a Motorola Research and Development facility in Phoenix, Arizona. He anticipated the enormous potential of the newly invented transistor and helped Motorola became one of the world's largest manufacturers of semiconductors.

By 1950 the net sales...

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