Connecting the classroom to the "real world"
Motorola looking to break itself up?
With the introduction of the Droid that I posted about previously, Motorola was already in the news before news came that management was considering breaking apart the company. Like the post I made about dropping unprofitable customers, sometimes it is best to eliminate entire divisions of a company to focus the strategy on what remains. As we discussed in Ch 11, the benefits of keeping a division have to outweigh the costs (this goes for nearly any decision in business) and Motorola must feel that they will be better off if they are able to sell their largest division. I’m sure this decision isn’t an easy one, but these kinds of things seldom are.
Motorola. is exploring the sale of its biggest business unit as it seeks to split itself apart, the latest sign of the once-mighty technology giant’s declining ambition in the convulsive world of telecommunications.
While others are looking to bulk up, Motorola is trying to break up as it seeks a strategy to combat plunging sales. It has tried for nearly two years to spin off its mobile-phone business, which has been without a hit device since its blockbuster Razr. In one bright spot, its newest smart phone, the Droid, has generated good reviews and initial buzz.
Motorola Considers Selling Big Unit. Dana Cimilluca, Jeffrey McCracken, Roger Cheng. Wall Street Journal. (Eastern edition). New York, N.Y.: Nov 12, 2009. pg. A.1
