“Motorola has an attitude problem. It thinks it
is an amazing company with amazing products. The only problem is that its customers don’t agree,” asserts a confident Jeff Kagan, Telecom Anaylst & Expert. Well, we don’t want to agree outrightly, but beg to add – even investors don’t! Look at its share price on NYSE. ‘Accelerating downhill’ is perhaps the only words you’d use to explain its movement; currently at $16.30 (as on December 10, 2007) – and simply sad days with its share price hitting the lowest levels in 7 years! And this was also confirmed by Gartner Inc on November 27, 2007 when it disclosed how Motorola’s mobile handset global market share had slipped to 13.1% during Q3 2007 from 20.7% during the previous year. The Gartner revelation was followed by Edward Zander’s announcement of an exit on November 30. 2007, alongwith Padmasree Warrior, the CTO – two chiefs who had led Motorola’s revival in the past.So has the Moto boat hit the rough seas? As per a telecom analyst, “Motorola has once again lost its way. This happened in the 1990’s when the networks switched to digital. That’s when Nokia took the lead.” And what does its financials reveal? Sadly, nothing different! With revenues earned during Q3 2007 touching just $88.11 billion, representing a y-o-y decline of 16.9% and with a lack of a “must have” product felt, Motorola surely has a tough job up its sleeve as Jeff agrees, “Motorola has to break some new ground. We have not seen anything along those lines yet.” Evidently, there’s some ray of hope at the end of the tunnel with Motorola’s announcement on December 6, 2007 that its forecast for Q4 2007 earnings still remain positive as Tom Meredith, CFO, Motorola Inc. declared: “a continuing operational earnings forecast of $0.12-0.14 cents per share”. Surely, Motorola has to move beyond just delivering a killer handset. It has to necessarily focus on its other more successful arms like home and networks mobility and enterprise mobility (its 2nd and 3rd largest units), which allow the company to fall back on other sources of revenue. Clearly, for now, Motorola needs to get ‘stuck’ things ‘rolling’...
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
Top Articles on IIPM:-
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
ex-presidents. There’s no real electoral payback anticipated in supporting them. Jews and Israel-loving evangelicals dwarf any Arab lobby to the extent that it’s not even funny. President Bush is now on the exit track. And it’s time to rectify the fundamental error he had made in allowing the war-on-terror rhetoric to wrongly discredit the Palestinian national movement.
World of Warcraft, Tabula Rasa et al creating the buzz. In fact, Wikipedia lists at least fifty of them on its MMORPGs page. At the last count, there were over 10 million people across the world registered with some MMORPG. And this number is doubling every year. The addiction is allegedly far worse than drugs or junk food. So what is this attraction based on? Well, first, an online 3D virtual world allows you to hide behind the screen and be just about anybody. You can make your deepest desires come true in a virtual world. This is the single most important driving factor behind this revolution.
consumers reported a decline in spending power due to rising petrol prices. While 19% wanted to buy more fuel efficient cars, an astonishing 13% had already reduced their driving on the back of $3/ gallon gasoline prices! As a result of earlier oil shocks, consumers have increasingly adapted an ‘aftermath attitude’ and eventual demands for automobiles have sagged significantly through out the world. A total of 38,214 hybrids were sold in the American market alone in March 2008, proof that these cars are now being perceived as a value proposition that’s beyond ‘fashion’.
operations are running smoothly, one must go through the Indian example before believing the same. The scene in India is not at all enticing. Though most banks have raised their minimum annual income criteria for a credit card to Rs.1,20,000 from Rs.80,000 and the know-your-customer (KYC) norms have become more stringent, the total amount under credit cards default stands close to Rs.200 billion, data from Credit Information Bureau of India reveals. Probably such kind of data might have scared the officials at Citigroup. As during March 2008, speculations were rife that Citigroup may sell-off CitiFinancial, a NBFC, which belongs to the group. Once considered to be the most aggressive sub-prime lender in India the NBFC was forced to change its norms and issue only collateral backed loans. On the other hand Citibank has also tightened its norms for issuing credit cards and now-a-days is focussing more on financing consumer durables and two-wheelers through credit cards. In rest of the markets Citigroup is now taking a cautious approach.
as well as aggressive PE groups, there is always that theoretical chance that something more desirable for Yahoo! would emerge. It may be more an issue of Yahoo!’s management really believing that there is great upside potential if the company remains independent and not wanting to transfer that potential to Microsoft regardless of price. “If it were ever put to a shareholder vote, however, I imagine shareholders would look at the situation much differently and line up in overwhelming numbers in support of a sale to Microsoft”, feels Richard.