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Abstract

This is the first of a two-case series. An industry's life cycle runs through four stages: introduction, growth, maturity and decline. In the first stage, companies prompt customers to buy the new product. Then the growth phase sees rapid market expansion and increasing competition, with the entry of new players. In these two phases, a lot of evolution (both in terms of products and markets) happens. Products undergo many changes with the application of new technologies, rising demands and varying choices of consumers. This case study sees how Motorola dealt with such evolution in an emerging market. Motorola was the first to enter the Chinese mobile phone market in 1987. So it was blessed with the first mover advantage for nearly 15 years. However, with the evolution of the Chinese telecom industry, improvements in mobile networks there and the entry of new competitors (local and foreign), Motorola began to lose its market share. But China became a crucial market for Motorola, as its western markets dried up.
Location:
Industry:
Other setting(s):
2007

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Abstract

This is the first of a two-case series. An industry's life cycle runs through four stages: introduction, growth, maturity and decline. In the first stage, companies prompt customers to buy the new product. Then the growth phase sees rapid market expansion and increasing competition, with the entry of new players. In these two phases, a lot of evolution (both in terms of products and markets) happens. Products undergo many changes with the application of new technologies, rising demands and varying choices of consumers. This case study sees how Motorola dealt with such evolution in an emerging market. Motorola was the first to enter the Chinese mobile phone market in 1987. So it was blessed with the first mover advantage for nearly 15 years. However, with the evolution of the Chinese telecom industry, improvements in mobile networks there and the entry of new competitors (local and foreign), Motorola began to lose its market share. But China became a crucial market for Motorola, as its western markets dried up.

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Location:
Industry:
Other setting(s):
2007

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