Motorola

00 per share in May of 2000. Starting in 1997, as a result of the leadership from previous CEOs, Motorola fell behind in transitioning from analog mobile phones to digital phones, and their problems became exacerbated by the downturn in the technology market (Crockett, 2001, p. 3). .
             For the five year period 1997-2001, Motorola lost a total of $1.471 billion and net effect to stock value was a $0.67 per share loss, with the worst coming in 2001. The company's consolidated net sales have dropped by $7 billion over the last year. Their operating expenses have remained relatively stable, while their long term debt increased by $4 billion from 2000 to 2001. It looks like these resources were used to maintain research and development expenditures at a level around $4.3 billion. The company also realized a $3.3 billion after-tax charge on the disposition of its long time problematic satellite venture, Iridium LLC. The hard times seem to have also reached every sector of Motorola as all business segments have watched their sales decrease over the past two years, resulting in a net loss for every segment, except the Commercial, Government and Industrial Systems segment.
             With 2001 being the first year the cellular telephone industry produced negative numbers for all wireless companies, Motorola must refocus efforts to regain market share and attract new customers. Motorola will direct resources to the profitable growth of a single product, in a single market, and with a single dominant technology. They must also exploit their expertise of the cellular telephone industry and focus on market needs, buyer behavior, price sensitivity and effective promotion. Since the cellular telephone market has not reached maturity stage, the market has room for growth and alternatives without Motorola having to continue to lose its customer base. Another factor supporting Motorola is that their products are sufficiently distinctive in that competitors can not and will not compete directly.