Subject category:
Marketing
Published by:
Thunderbird School of Global Management
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Abstract
In a few short months, Motorola went from the darling of the cell phone market - 'the cool innovative company with quality to match', according to Chief Executive Officer Ed Zander - to the famously high-share, but unprofitable, handset manufacturer it became by early 2007. Both identities derive from the management of and profitability of the RAZR handset. At introduction, the RAZR was priced at USD500-USD800; by 2007, it was often free with a service contract. But new Chief Marketing Officer, Casey Keller, sees a future for the RAZR: 'The company plans to maintain the RAZR as a premium brand with frequent upgrades, instead of allowing it to become commoditized and eventually fade away'.
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Abstract
In a few short months, Motorola went from the darling of the cell phone market - 'the cool innovative company with quality to match', according to Chief Executive Officer Ed Zander - to the famously high-share, but unprofitable, handset manufacturer it became by early 2007. Both identities derive from the management of and profitability of the RAZR handset. At introduction, the RAZR was priced at USD500-USD800; by 2007, it was often free with a service contract. But new Chief Marketing Officer, Casey Keller, sees a future for the RAZR: 'The company plans to maintain the RAZR as a premium brand with frequent upgrades, instead of allowing it to become commoditized and eventually fade away'.
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