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Mobile Giants’ Battles

Recognized as the fastest-growing handset manufacturer on the planet, Motorola has recently seen its sales figures skyrocket represented by a 53 percent increase in July 2006, over the previous quarter. However, Motorola’s main competitor, Nokia, remains the industry’s leader with 34 percent of the market selecting to purchase its unique mobile phone models. Those two giants are followed by other mobile manufacturers, like Samsung and LG, which hold 12.8 percent and 6.9 percent of the market respectively, while Sony Ericsson comes in fifth place enjoying 5.9 percent of the telecommunications pie.

But, as all business professors point out in their Business 101 classes, the difference between being first, second or last in the future lies in the hands of a company’s present strategic decisions. Forming the right alliances, finding, targeting and succeeding in satisfying the needs of the currently emerging markets, makes all the difference in the world for any type of company in almost any type of industry. Being such, the fierce competition telecommunication companies have to face today is based both on their product’s appeal and on their ability to interpret fast-changing trends; both in economy and personal taste.

Given the above, Motorola’s biggest challenge was to understand which features of today’s mobile phones are mostly desired to be sold to those emerging markets, like India and China, where mobile telephony has been gaining the most ground. Especially after Samsung’s threat, two years ago, to overtake Motorola, the company had to find a new idea to surpass its competition and also remain in the top bunch. By developing low-end phones and targeting India and China where the main money is, Motorola managed to increase its sales margins and momentum. Focusing on a highly trendy new design and incorporating basic technological features, Motorola produced and sold more than 50 million units of one brand of phone alone, marketed as Motorola RAZR.

But although Motorola managed to surpass Samsung’s buying-out threat, it still has to challenge its main current competitor, the all-powerful Nokia. Perhaps the goal of overtaking Nokia rests with the next generation of phones, as experts support. Although Motorola has introduced the next RAZR 2 model, the Canary, it certainly has not made a huge impact to consumers, who are mesmerized by the cool, trendy features Nokia mobile developers are continuously launching. But in business, as well as war, it is always wise not to begin counting chickens before the eggs have hatched. So, consumers and industry’s critics alike can only wait to see what will the telecommunication giants will think of next.

About the Author: John Gibb is the owner of mobile sources
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