Form or Function?

Implications: The V3 was something that was a victim to fortune. Motorola built a very sexy looking handset they just forgot to do something with the software.  So you got a large number of users who discover that this is not a Nokia or a Sony Ericsson and you need to read the instruction book. Life is too short for instruction books, and so people became unhappy that this was a phone that just made calls and sent texts.  As an internet device it is a nightmare. Not a great device for networks looking to raise ARPU with data services so limited lifespan. Motorola have been playing with just what OS to run on the handset.  You can get the Q which is using Microsoft as the engine for the Smartphone.  However the latest Smartphone sees them return to UIQ (Symbian) for the software and it does not have a QWERTY keypad and so once again data services will be limited. David Beckham as a Brand is outdated, just as LA Galaxy about bang for buck.

Analysis: My Wife has a V3 and she loves it.  But then she does not use her mobile much and when she does it is just for voice.  I refuse to use any handset from Motorola until they install software that is user friendly.  I have no wish to read the instruction book, just who learns to swim from a book?

Motorola used to have an excellent R&D function it was the salesforce in Europe who helped to set the agenda.  Then they hit on the STARtac and ground to a hault.  Because this was a flip phone that everyone loved they thought that the phone was all about Industrial design.  The team that was leading development in Swindon was allowed to depart to form key parts of others Development Groups.  The founder of Sendo was once in charge of development at Swindon as was a number of Senior Managers that formed Symbian.

Just like a bible story after the feast came the famine.  Then out of the wilderness came the RazrV3 and once again all was well in the Moto camp.  In the bright sunshine the executives fell asleep and they forgot to find a replacement they also did not listen to the gripes. 

Whilst fat on the profits Motorola decided that they could gain lost market by making a handset for emerging markets and told the GSMA that they would once again show the world and make a handset for the world that would cost less than $50.  Alas they have failed, the low cost market is very difficult because the consumer can aways trade up to a second hand handset rather than show people that they are too poor for anything than the cheap phones.  It's a shame as with a little work on the messaging software the f3 would be a great voice only handset.  As a second phone it has a battery do die for and any easy screen to read.  It could have been the Kalashnikov of mobiles if they had only sold it as a second phone to the road warrior for use alongside the Crackberry!

Today what you have is a Global Administration with a focus on the US and China.  If you look at China what you will see is a Country that will get old before it gets rich, in less than 20 years over half the population will be over 50 and will have little will for an upgrade on their phone.  Nokia has moved into services look at what they have been bolting on to the handset business to make their handset a remote for your life.

At this time Zander has done what?  Who this week is the head of the Handset business and how long has he been in place.  If my former employer is not careful they will discover that they are not the biggest American handset business.  That could just be Apple if they learn from the early mistakes of the iPhone.

Everytime Motorola makes a mistake it loses traction not just to Nokia but also Sony Ericsson who are follow a more segmented strategy to great effect.  They cannot compete on price with the likes of Samsung and LG and so again they fall back.

If they do discover the next great handset I am affraid that they might just kill it with the Global Marketing strategy they currently employ.  Very few business can create a simple message that works around the Global.  Motorola needs to look at the Brand as well as the Device marketing that they undertake and find a way to promote the product by something more than product placement in the latest  hot TV drama.  Without a consistent plan that talks to the target groups they have little opportunity to pull out of the fall. 

The CEO needs to get a grip on both Engineer and Distribution and fix both.  Without it they might just be remembered as the Car Radio people that I was told wanted my as a business analysts when I joined them some 22 years ago.  Even worse they could just end up as the tetra radio guys.  Motorola had an opportunity with the V3 alas they drop the pass and now find themselves third and long.