Page 11 - Business Blunders 1 Teaching Note

It could be argued that Motorola failed to appreciate how
its market was changing and how its competitors were

reacting. Essentially, the customer was expecting
upgrades at an increasing pace and unlike Apple

Motorola was not prepared for this.

Even though Mororola was the market leader there

would appear to be a lack of environmental scanning and

adaptation to the results found. Perhaps, a more fleet of

foot organisation would have adopted a me-too attitude

to its loss of market status and revenue as competitors

introduced more appropriate models?

An additional flaw lay in Motorola not appreciating the

relationship between the Pareto Rule and the PLC.

The 80/20 rule was firmly fixed with the 80% being

embedded in the developed markets where new

innovations and models were eagerly sought. The

developing market and budget handsets were in the 20%
and would not generate expected returns returns.