According to Gartner, despite Razr’s good performance in emerging markets, its dull new launches like Krzr K1 & Motofone & heavy inventory buildup (increasing its holding costs) have played spoilsport. Adding to its woes was a fall in EPS by a heart-rendering 54.35% & a lamentable 48.17% drop in net profits over the previous year. Also, with share prices hovering around a two-year low of $17.73 in March 2007 and M-Cap eroded by 27% over just a year, Motorola is losing ground. The company’s woes are showing up in shareholder meetings too. Corporate tomb raider Carl Icahn (who holds 2.7% voting power) is stepping up his act, seeking a position on the board and pressurizing the company to buy back shares.
Source : NYSE
That’s quite upsetting for a company that was getting increasingly stronger in the mobile phone segment, which contributes around 74% to its revenues. As on December 31, 2006, Motorola held 21.5% of the global market over 17.8% the previous year. The situation calls for innovative launches & cost-cutting measures. First and foremost, urgent steps are needed to create another cash cow to duplicate MotoRazr’s performance.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Source : NYSE
That’s quite upsetting for a company that was getting increasingly stronger in the mobile phone segment, which contributes around 74% to its revenues. As on December 31, 2006, Motorola held 21.5% of the global market over 17.8% the previous year. The situation calls for innovative launches & cost-cutting measures. First and foremost, urgent steps are needed to create another cash cow to duplicate MotoRazr’s performance.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
