...Acquisition of Motorola Mobility by Lenovo Md Asifur Rahman Khan Executive Summary This report is on the Acquisition of Motorola Mobility by Lenovo. The main purpose was to know about the acquisition of Motorola mobility by Lenovo, Background of the acquisition, and consequences of the acquisition and the Financial and Human Resource Impact of Holder and Subsidiary Company. This report intends to show these above mentioned factors in Lenovo and Motorola Mobility Acquisition. Introduction Mergers And Acquisitions - M&A' A general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed. The main reasons of Merger or Acquisition are to join forces to strengthen market position, cut back cost, diversification or to share technologies, ideas, expertise for future growth of the companies Company Profile Lenovo is one of the world's leading personal technology companies, producing innovative PCs and mobile internet devices. A global Fortune 500 company, Lenovo is the world's largest PC vendor and fourth largest smartphone company. Lenovo is a US $47 billion personal technology company with more than 57,000 employees (including joint ventures) in more than 60 countries serving customers in more than 160 countries. Lenovo is a global company that is incorporated and headquartered in Hong Kong...
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...Acquisition of Motorola Eric Brown Dr. Ross Contemporary Business February 13, 2014 Acquisition of Motorola Google’s acquisition of Motorola Google announced on August 15, 2011 that it will acquire Motorola Mobility Inc. (MMI), for a sum of $12.5 billion. This was a vertical form of merger as the supplier (software provider) acquired its hardware client (Motorola). Reasons for acquiring MMI * Google’s android operating system has been sued by companies like Microsoft and Apple for patent infringement. The company sought access to just MMI’s patents and hence ensured the independence of MMI as a separate company. * MMI is a big market player for mobile phones hardware. Its phones with Android platform proved to be huge success. Joining hands with Google will increase its ranking in the market. * MMI’s smartphone sales increased over the past year. Here, Google had a big opportunity to improve its share in the smartphone market. * MMI had developed and launched many breakthrough products over the years. MMI was the first company to introduce portable cellphones. Google hoped to benefit from technological innovations of MMI. * The two companies will be integrated to provide complete mobile phones and thus they will be better able to compete in the market with other top players. Impact of the deal The two companies together were expected to accelerate innovation and choice in mobile computing. Since Motorola is good at devices and Google is good at...
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...than its competitors. Technological Resources also support the innovation resources. Innovation is the most important thing for the current mobile markets and that is hard to imitate and valuable. There are so many competitors, and so many new products come out every year. If Sony Mobile wants to against their competitors, they should have enough innovation to create new product. The Smartphone market has lot of competitors, and potential competitors, but some competitors may lose their competitive advantages when they cannot follow the market or they lack of innovation or technological resources. For example, Google bought the Motorola mobile years ago. Motorola was the mean competitor in the mobile market, but after Apple, Samsung, HTC and other mobile company into the mobile market, but in the end Motorola mobile lost its competitive advantages and sold to Google. This industry is very attractive, so there are so many...
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...in play. It is a personality that identifies a product. Name, term, sign, symbol. The WALT DISNEY: Disney has been successful at branding with their particular script font (originally created for Walt Disney’s “signature” logo), which it used in the logo for go.com. Primary Difference between marketing and branding can be figured as that Branding is strategic and marketing is tactical. Marketing may contribute to a brand but the brand is biger than any particular marketing effort. It is what sticks to one’s mind. Associated with a product , service , or organisation. Marketing and Branding for an organisation goes hand in hand. Every organisation has to sell, The way they sell might differ but ultimately every organisation is working towards constructing an image. The image of whatever they are trying to sell, be it a product or a service. Every action of their might be a positive step if taken with proper research and planning or can be a bad step which might lead to deconstructing the brand. Whatever the outcome is , is totally dependent on the way marketing of a particular service or product is done .Inbound marketing uses tactic to convince customers to try a product while branding is a strategy...
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...Introduction Google Incorporation is an American search engine company, found by Sergey Brin and Larry Page in 1998. It dominates the market by handling over 70 percent of worldwide online search requests (Hall, 2014). It aims to organize the world’s information and make it universally accessible and useful. Besides, it has an unofficial mission “Don’t Be Evil”, which refers to do good things for the world even though forgoing short term gains (Farfan, n.d.). It successfully expands its business from an online search company to a diverse company. Nowadays, it provides over 50 Internet services and products, such as Gmail, Google drive, Android, operating systems, applications for mobiles and computers. Moreover, when it took over Motorola Mobility in 2012, it began selling hardware, including smart phones and tablets, like Motor X, Nexus 7,etc. (Monhan, 2014). Recently, Google has sold Motorola to Lenovo at a much lower price, $2.91 billion than its purchase cost, $12.5 billion (Pressmen, 2014). Outwardly, it suffers enormous loss on disposal and loss of revenue. Worse still, its third quarter revenue growth rate from July to September in 2014 is far lower than analysts’ anticipation (Guynn, 2014). It may imply that there is stagnation for Google’s earnings. As a result, we will analyze Google based on CVP analysis, cost structure analysis, ratio analysis, and ethical issues and provide recommendations to maintain its sustainability. Financial analysis The quarter report shows...
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...History Lenovo was founded on 1 November 1984 as “Legend” by Liu Chuanzhi and other 10 colleagues members of the government agency “Chinese Academy of Science” with a start up capital of $25,000. Their first substantial attempt failed within the year, as television importers, but the Lenovo group restored itself within a year by conducting quality reviews on computers for new consumers. This was Lenovo’s first and major success. Lenovo succeeds in developing a circuit board that allows IBM Pc's to process Chinese characters. Lenovo’s group moves its headquarters from Beijing, China to Hong Kong in 1988 and in 1990 launches its first Pc on the market changing its roles from that of imported computer retailer, to producer and seller of their computer products. In 1996,Lenovo becomes the Market share for the first time and presents its first laptop computer and in 1999 the group keeps growing becoming the largest wholesaler in the Asia-Pacific region. Lenovo announces the sale of its 10-millionth ThinkPad notebook PC in 2000 and will share in the Hang Seng index in Hong Kong. In 2002 Lenovo made partnership with Xiahua Electronics Stock Company, by launching Lenovo mobile phone business. In March 2004, Lenovo joined The Olympic Partner Programme of the International Olympic Committee as the first Chinese company to become the computer technology equipment partner of the IOC for the period from 2005 to 2008. In 2008 Lenovo sold its mobile division to buy it back in November...
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...SMARTPHONE INDUSTRY IN 2013: SAMSUNG’S DILEMMA1 Mehdi Hossein-Nejad wrote this case under the supervision of Professor W. Glenn Rowe solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-06-18 In April 2014, Samsung released its new high-tech flagship phone, the Galaxy S5. The new Android phone came after another successful year for the company. After becoming the leading global mobile phone manufacturer in 2012, 2 Samsung had maintained that lead in 2013 and sold more phones than rivals such as Nokia and Apple. Samsung was also a major player in the increasingly popular tablet computer market. The success of the Galaxy S3 and S4 had created a lot of expectations for the S5 device, but both Samsung and industry...
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...Brand Equity Study of Motorola | Table of Contents: 1. Research objective: 2 2. Research methodology: 2 3. About motorola mobility: 2 4. Global mobile phone market: 2 5. Consumer buying journey: 4 6. New moto series: 5 7. The trinity of brand strategy: 5 7.1 value propostion: 5 7.2 positioning: 6 7.3 brand identity: 7 8. Brand elements: 7 9. Verdict: 8 Brand Equity Study of Motorola “Motorola exists to invent, build and deliver the best mobile device on the planet, improving the lives of millions of people” ------------------------------------------------- -Vision Statement of Motorola 1. RESEARCH OBJECTIVE: This research project is carried out to evaluate the Brand Equity of Motorola mobility. 2. RESEARCH METHODOLOGY: The research was carried out in two stages. The first one is secondary research, followed by the in-depth interview with the Moto G users. 10 in-depth interviews were conducted where the questions are asked about the brand identity of the Moto G and about the customer perception. 3. ABOUT MOTOROLA MOBILITY: Motorola is an American telecommunication device manufacturer based at Chicago. They created the world’s first commercial portable cellular phones. On August 2011 Google acquired Motorola mobility division for US$12.5 billion. During 2003 to 2007, worldwide Motorola was one of the leading mobile phone manufacturer. But due to lack of product innovation, continuous improvement, Motorola lost its significant...
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...Research About the Lenovo Technology Company Kehao Wang (Leo) 1011906 Northwood University MGT- 4800- 02 Doctor Susan Dennett Oct .11.2014 Abstract Lenovo is a Chines multinational computer. It leads Chinese electronic industry market because it has successful competitive strategy and excellent management. As a one of global the Fortune Top 500 enterprises, and became the world’s largest personal computer manufacturer in 2013. (1) The Lenovo is worth research. Introduction Lenovo Group Ltd. (stylized as Lenovo) is a Chinese multinational computer technology company with headquarters in Beijing, China, and Morrisville, North Carolina, United States. It designs, develops, manufactures and sells personal computers, tablet computers, smartphones, workstations, servers, electronic storage devices, IT management software and smart televisions. In 2013 Lenovo was the world's largest personal computer vendor by unit sales. It markets the ThinkPad line of notebook computers and the Think Centre line of desktops. Lenovo has operations in more than 60 countries and sells its products in around 160 countries. Lenovo's principal facilities are in Beijing, Morrisville and Singapore, with research centers in those locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in China, and Yamato in Kanagawa Prefecture, Japan. It operates a joint venture with EMC, Lenovo EMC, which sells network-attached storage solutions. It also has a joint venture with NEC, Lenovo NEC Holdings...
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...Micro-environment: • Customer demand and behaviour According to surveys done both online and offline, the demand of Apple products has increased especially for the iPad 2, the iPhone 5 and the Apple Nano. The research showed that there is a 50:50 ratio split of males and females who are Apple buyers. It also showed that amongst potential buyers, only about half don’t own an iPod. Research has also shown that the increasing demand for Apple products has allowed Apple to sell close to 1 million iPad 2. They have recorded to have sold 47.8 million iPhones and 22 million iPads, compared to the previous year where only 37 million and 15.4 million were sold. • Competitor activity Apple faces competition from both the mobile as well as PC industries due to its diverse product line. It therefore has different competitors for different products. Products like Macintosh and iMac has competitors like IBM, Dell, Lenovo, Acer and HP. The iPhone series has competitors like RIM’s Blackberry, Nokia, Google and Motorola. iPod series has competitors like Samsung, SanDisk, Napster Amazon.com, Microsoft’s Zune, Napster, internet radio and Spotify. The iPad has competitors like Amazon’s kindle, Dell, HP and Samsung. Operating systems has competitors like Google’s Android OS. • Marketplace structure The marketplace structure for Apple is Oligopoly. An Oligopoly is a market structure in which only a few sellers offer similar or identical products and dominate the market. They have strong control...
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...Flipkart-The Online Megastore Company was co-founded in 2007 by Sachin Bansal and Binny Bansal who are alumni of IIT-Delhi after they left amazon.com which was then the largest online retail hub. Legally, Flipkart is not an Indian company since it is registered in Singapore and majority of its shareholders are foreigners. Because foreign companies are not allowed to do multi-brand e-retailing in India, Flipkart sells goods in India through a company called WS Retail. Other third-party sellers or companies can also sell goods through the Flipkart platform. Initially started with online price comparison only to become bigger and bigger and moved to online selling of books (e-book) but later expanded it to other electronic goods and daily household appliances and equipments. Its initial investment was ₹4 lakhs out which ₹2 lakhs was just to buy computers and furnitures for their offices and all funds were acquired through venture capitalists like Accel India,Tiger Global,etc. This online retail venture currently employs over 4500 employees and has 7 warehouses throughout the country where on an average,20 products are sold per minute. The logistics firm of the company are valued around ₹10,000 Crores And had a massive revenue of around 1200 Crores (FY 2012-13) and plans to reach 2500 Crores this year. Flipkart's reported sales were ₹40 million in Financial Year 2008–2009 and ever since then the company's sales turnover has increased infinitely to the extent that the sales projection...
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...Agony and HTC: How an underdog phone maker aims to reinvent itself Agony and HTC: How an underdog phone maker aims to reinvent itself The company will use Mobile World Congress next week as a coming-out party for its new identity as a consumer gadget and mobile-app maker. It may be the most important party it ever hosts. by Roger Cheng http://www.cnet.com/news/agony-and-htc-how-an-underdog-phone-maker-aims-to-rei nvent-itself/ February 23, 2015 5:00 AM PST HTC's Creative Labs studio in Seattle's Pioneer Square neighborhood is tasked with coming up with the software experience on all the company's products. James Martin/CNET SEATTLE--I arrived in the tech-revitalized, hipster neighborhood of Pioneer Square on a crisp December morning, eager to see HTC's Creative Labs studio and meet up with the team of designers responsible for the novel interface software that fronts the Taiwanese-maker's smartphones. There was just one problem: I couldn't find the place. The typical sign with a corporate logo, emblazoned in bold letters, was nowhere to be found. There wasn't even a tiny nameplate anywhere. After a careful search, I stood before a nondescript door that was sandwiched between an Italian restaurant and a hair salon. The shops, housed in a contemporary commercial brick building, both fit in with the colorful vibe of the area, but home to a branch of a global smartphone company? "We don't do much in the official way here," said Drew Bamford...
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...Phonebloks Asta Tamosaityte Raluca Emanuela Hirbu Oliver Fracke Möllnitz Table of Content 1. Introduction 2. Company background 3. Concept 4. Problem area 5. Problem formulation 6. Mission, Vision, Values and Goals 7. Selling prepositions 7.1. USP 7.2. ESP 8. Target group 8.1. Questionnaire 8.2. Target group 9. Marketing Mix 9.1. The four P’s 9.2. PEST analysis 10. Market research 10.1. Mobile subscribers worldwide 10.2. Top mobile markets: The 100 million Club 10.3. Mobile phone shipments 10.4. Mobile device market penetration 10.5. Smartphone shipments by manufacturer 11. Competitors - SWOT on competitors 11.1. Competitors 11.1.1. Direct competitors 11.1.2. Indirect competitors 11.1.3. SWOT analysis on competitors 12. Partners 13. Social media strategy 13.1. Filter bubble 14. Marketing constraints 14.1. Modular concept vs. unibody concept 14.2. Purchasing individual components 14.3. Marketing place 14.4. Easy process 14.5. From store to phone 14.6. Producers 15. Producers scenario 15.1. Manufacturing 15.2. Partnerships 15.3. Selling and Market place 15.4. Branding 15.5. Sizes 16. Technical constraints 16.1. Installation of components 16.2. Components 16.3. Upgrades 16.4. Unibody vs. Modular 16.5. Compatibility 17. Mandatory components 18. Phone and screen size 19. Quality assurance 20. Phonebloks - SWOT and TOWS analysis 21. Design description 22. Rendering techniques and details 23. Video 24. Conclusion 25. Appendix and Literature list 1 1. Introduction es...
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...Smartphone Industry Analysis By Abstract We define a smartphone to be a mobile device possessing cutting-edge capabilities and features likened to cellular phones. Their hardware and software features are supposed to functionalities like browsing the web, taking fine pictures, and watching HD videos and much more (Darlin, 2008). A notable principle trend in the current market is the increased demand for big-sized screen smartphones. With the development of better platforms like virtualization, cloud computing, and disposition of next-generation LTE networks like 3G and 4G, people have too great extent intensified activities such as internet browsing, playing games, and playing videos on these devices, taking the worldwide demand for smartphones to another level (Dediu, 2013). This paper examines the changing aspects that are enabling sustained disruption in the international smartphone setting and such aspects that will propel more change over in the next few years. Introduction The smartphone industry has seen astonishing growth in modern years; sales volumes rose by more than 40 percent in 2014 to go not far from the 1.8 billion unit threshold focus of 2018, and it is more than $300 billion in value (Dawson, 2010). Nonetheless, this volatile growth has been complemented by the substantial disruption. Players in Web market are targeting to take the advantage that smartphones offer in the instances of assignation, context, connectivity...
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