A Problematic Situation of Motorola by Jana Passova

Motorola one of the largest cell&phone manufacturers in the United States has found itself in very problematic situation. Even the famous Razr doesn't help to improve earnings. Last year company finished behind number one Nokia and number two Samsung Electronics. Cell & phone business doesn't work and this situation needs to be solved. Earnings are getting worse and also shares lose. Motorola see separating of the cell & phone division like the best choice. Although there are not any guarantees this step will help. On the other hand management of Motorola is sure that recovery is unable under existing structure. Today it is still not certain, if the company will solve the problematic situation with spin it off to stock-holder or sell of unit. Questionable is who would like to buy company with such a bed state in a market of the third generation phones. One of the companies that could have interest is LG Electronics, number five on the market and big rival. Its strongest side is a partnership with Verizon but it is only a weak player in the technology used by AT&T and Deutsche Telekom's T-Mobile. Another potential interested person is Nokia or small Asian firms, which are ready to play in a world of wireless services. Possible acquirers are Huawei Technogies or Lenovo Group. Question is how much are these companies able to invest in this project. Another strategy will be tried inside the company. It will refer high costs, which need to be reduced. There is also problem with the people that don't know how to run technology.

by Jana Passova for PocketNews (http://pocketnews.tv)

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