Motorola Analysis
Motorola AnalysisThere are numerous cellular service providers in the United States. With the recent boom in sales in the consumer market it is important that Motorola clearly define it’s current market segments and identify any we have over looked. Because of the fierce competition, it is also very critical that we explore the needs and wants of the potential cellular customer.
Right now, the Motorola Company sees everyone as a potential customer. Going wireless has not only become the latest and greatest fad, but very critical for business. Within the cellular market exist two broad segments, the consumer segment, and the business segment. Both of these groups have different expectations of the kind of service and value they expect from their cellular providers.
The first segment, the consumer segment, consists of what I will call the “recreational” users. The consumer segment counts for less than 30 percent of the total cellular market (Gupta). These customers do not depend on their cell phones for business purposes. They are typically teenagers, college students, car phones, and members of families who are often on the go and need to be able to get in touch with family and friends on occasion. Their air time usage is usually must lower than the members of the business segment. The typical user is focused on certain aspects of their cellular providers: “How much does it cost? Do I really need these great new wonderful things that technology is offering? How often must I replace or recharge the batteries? Can I use this only in my town?” Most technology-related studies indicate that consumers have relatively little interest in anything other than if the product works when they want it to work.(Quinn) “They are not predisposed to debate the relative merits of competing standards. They aren’t concerned with whether their cellular service is terrestrial or satellite-based (Globaltelec).” As the industry matures effective customer segmentation and development of customized products will be critical success factors.
Motorola has caught the eye of the younger consumer segment with a product called TalkAbout, which comes in an icy blue to attract younger consumers who might be new to cellular services but yield to a sporty image. This product combines both paging and cellular phone services at one low price.
The second major segment is the business segment. Today, small businesses and corporate segments account for about 70 percent of world cellular market (Gupta). These users of cellular services are more concerned...
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