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SWOT Analysis
Strengths
There is a significant renewal for Motorola in 1997 -- one that included management changes, a return to growth in profits, the departure from certain nonstrategic businesses and the beginning of industries such as low-earth-orbit satellite manufacturing. Sales in 1997 rose 7% to $29.8 billion from $28.0 billion in 1996. Earnings were $1.18 billion, or $1.94 per share, up from $1.15 billion or $1.90 per share, in 1996. (Consolidated Statements of Earnings) Despite the risks involved in expanding into new markets and technologies, Motorola's balance sheet remains strong. The ratio of net debt to net debt plus equity declined to 12.4% at the end of 1997 from 13.4% a year ago.
Motorola puts a huge amount of budget on research and development expenses, it rose to $2.748 billion in 1997. It is opening more and more research and development centers close to the customers it serves throughout the world. It introduced a broad line of advanced cellular handsets in major digital formats. It has more than 80 Global System for Mobile Communications (GSM) infrastructure contracts worldwide and have launched 38 Code Division Multiple Access (CDMA) systems.
Motorola has earned a reputation among its customers as a company whose
quality products enable them to solve problems and do the things they want to do.
Today its products move more and more into the consumer arena, it is working very hard to build equity in the Motorola name and identity to excellence in marketing throughout the world. This involves getting into a dialog with the people who use its products better understand how Motorola improves people's lives. It is developing the marketing strategies that can make it the mo ...