NORTH SOUTH UNIVERSITY

SCHOOL OF BUSINESS

Business Canvas Model

of
Motorola Mobility

Prepared for: Mohammad Hannan Miah (MHM)

Prepared by:

Md. Shariar Alam 102 0176 030

Tahsin Hossain 101 0735 030
Sathwath Ali Bhuiyan 111 0330 030
Ananda Jabbar Ratul 111 0225 030
Prashant Tiwari 102 0559 030
Nowshin Ahmed 111 0178 030
  Personal
 Strategic
 High
Platform
Physical
Lenovo
Newness Group
Alliance06market
407 MHM
Assistance
end 2014
in
 Cost Driven: low endmarket
Newness
 market
Development
Intellectual
stores.
Google of soft
and lowInternational
Customization end
 Value Driven: high end Flextronics
 Acquisition
-wares
Live Chat and
of apps
Particular
Online
 My Skilled human
market.
 Licensing Fee Customization
Design
 resource
Production
Ltd andand
repair activities
return
resource
 
R&D expenditure  center OS
Arris updates
R&DGroup
 Design
Verizon, AT&T. T-
 Outsourcing cost  
Alliance
Email
Brand forstatus
optimization
Support
 Asset sales and OS updates
economic
Mobiles
 Telephones
Price of scales‘Give
& Sprint
support
 Datamax-O'Neil
 aBrand
Ring’.
status
Risk reduction

 Communities:
IBM and OracleFacebook
 Price
 Motorola Software and UI
Accessibility
SAP
Reduction of risk and
uncertainty
Risk reduction

  Accessibility
Verizon Wireless,
Corning Inc.
&Qualcomm
Incorporated
 Avnet Technology
Future Alliance
 Lenovo
 Business Model Canvas

Customer segment: Higher end market and low end market:

Motorola has come up with products such as Droid and Moto X, which are more

technologically advanced with Google android high operating system, high resolution camera

and AMOLED screens. These products are directed at premium market to create a

differentiated image of the product and to be able to compete with phones like Samsung and

Apple unlike Moto G and Moto E which is aimed at lower end market priced at around $100

to $200.

Although profitable, this segmentation strategy does not set the Droid apart from other

Smartphone’s that are also marketed towards the same consumer. The Droid by Motorola

product line is positioned and advertised as functional for both work and home, as the

company has realized that a narrow segment can limit its future mass market appeal.

Customer relationships:

 Personal Assistance in stores: Motorola provides personal one to one interaction with

customers. The employees personally attend each customer and help them resolve

issues or decide on phone selections.

 Live Chat Online: Motorola Mobility provides 24/7 online live chat service to its

customers all over the globe.

 My repair and return center: Motorola has “My Repair and Return Center” where

phones with technical issues are repaired or can be return & replaced with a new

product.
  Email Support: email support with the fastest reply usually within one business day.

 Telephones support ‘Give a Ring’. : Motorola encourages customers to call them

whenever they face any problems with the cell phones.

 Communities: Facebook and Twitter page: Communities such as Facebook and

Twitter allows customers to give their feedback and post their problems with the

devices. This allows interaction which makes the customers feel more involved.

Value Proposition:

Motorola Mobility makes sure that it integrates its patents and copyrights (intellectual), with

great physical attributes (hardware specs, battery life, fluent OS incorporation, etc), backed

up by its incredible human resource (designing phones to compete against other

manufacturers on an equal footing and providing the best logistics and support) and R&D

(new technological innovations – first 1080p display phone, Project Ara, etc.) to provide the

consumers with the best possible value and the best experience.

 Newness: In addition to coming up with newer iterations of devices, Motorola Mobility is

coming to market with its very own smart-watch, Moto 360 featuring the one and only

device to sport a circular touch screen and one of the first few devices to use the newest

Android Wear OS.

 Customization: The Moto Maker gives the users the ability to customize their devices to

their hearts content. No longer are the users bound by what manufacturers provide, they

can customize their Motorola devices from choosing the color to selecting trim levels and

boot animations.

 Design: Motorola fixed its issues to design and build robust devices sporting cool, slick

minimalistic designs and also giving the users the ability to modify if needed.
 OS Updates: Being closely linked with Google, Motorola devices are the first ones after

Nexus devices to support the newest updates.

 Brand/Status: In a highly saturated market with many no-name companies, Motorola

provides the users with a household name

 Price: Off-contract prices for the devices are very low and offer great ‘bang for the buck’

[Moto G LTE $179, Moto E $129]

 Risk reduction: Moto X, Motorola’s flagship phone, is being offered to customers for a

trial of two weeks for a penny thus reducing the customers risk in selecting a phone.

 Accessibility: Motorola’s new devices [Moto G, Moto E] are free on contract and are

available on all carriers thanks to their good relationship with US carriers making the

devices highly accessible to everyone.

Key Partnership

Strategic Alliance:

 Google: Acquired Motorola and key provider of Motorola’s operating system.

Acquisition of Particular resource and activities:

 Arris Group: purchase Motorola Mobility's cable modem and set-top box business

Alliance for optimization and economic of scales:

 Datamax-O'Neil: develops and delivers cost-effective, industry-leading solutions for

mobile field service/workforce and direct store delivery (DSD).

 IBM and Orcle: streamlining the supply chain with real-time inventory management,

implementing EPC-compliant RFID technologies to reduce information gap in

 retailing, workforce automation and migrating wireless technologies to the new

802.11 environments.

 SAP: technology to reduce cost, improve performance and gain the agility through

customer relationship management (CRM), enterprise resource planning (ERP) and

supply chain software.

Reduction of risk and uncertainty:

 Verizon Wireless- (Motorola’s biggest customer), Corning Inc.- (for Gorilla Glass),

Qualcomm Incorporated- (for mobile systems chip).

 Avnet Technology Solutions: to Distribute Motorola Mobility’s Video and Broadband

Solutions.

Future Alliance:

 Lenovo: already acquired Motorola’s large alliance IBM and on the verge of

acquiring Motorola Mobility. This will provide Lenovo easy entry in USA mobile

market and its supply channel through IBM.

Cost structure

Cost Driven:

 Moto G, a product of Motorola Mobility, is a low-end market phone produced to

serve price sensitive customers. It falls under low-end market since this phone costs

less than $200 with contract.

Value Driven:

 Moto X being a flagship phone is a premium phone which cost more and is

specifically produce to serve the high-end markets

Licensing Fee:

 Motorola Mobility is licensing the Reference Design Kit from Comcast for its set up

development cycle. The Comcast RDK is a pre-integrated software bundle that creates

a common framework for powering two-way, IP or hybrid set-top boxes and video

gateway devices

R&D expenditure:

 Motorola’s R&D spending has been decreased in the past few years but still they have

been investing a decent amount to reach out its goals. It was said that Motorola’s main

mistake was that it uses other companies operating system for its phone so they are

trying to significantly raise their spend in making their own operating system like it

worked with Apple.

Outsourcing cost:

 Motorola's longstanding outsourcing partner is Singapore-based Flextronics, the

world's second-largest electronics contract manufacturer. Under a reported US$75

million deal, Flextronics took over management and operation of Motorola's factories

in Tianjin and in Jaguariuna, Brazil, last year.

Key Resources:

Physical:

 High-quality Motorola phones which are recently providing high security like the use
of Biostamp Electronic Tattoo, durability against several hazards on daily usage, long
battery life, and much more but above all it gives the users an amazing “smart-phone”
experience and are extremely user friendly.
Intellectual: its patent and copyrights, however most of them have been sold out to Google
Co.

Human: Motorola Mobility’s most prime resource is its employees who are dedicated and
motivated towards achieving company goals, through experts who are innovative in
technology, knowledge management. In addition, administrators who have abilities that suits
company future govern Motorola Mobility. These administrators are very talented and
acquire the required skills in technology and general electric, as it requires human resource to
come up with a device which could compete with other smart phones not only in terms of
tangible product but also in terms of intangible items like software, apps etc.

R&D: Motorola Mobility’s R&D sector, which specializes and presents with high-tech
innovations, and now as it is under Google’s authority there can be much more to expected
than before and already some sparks can be seen in its new product Moto X.

Key Activities

 Platform: Motorola needs to continuously upgrade its smart phones, and come up
with new android software, and application. It needs to keep up with the different eco
system.
 Apps developer/ app development: The smart phone industry in not dominated by
just the product, but the functionality that it provides, that is the apps and software’s.
 Production: Motorola Mobility hardware production dominates the market, although
it has a very limited product line.

Channels:

Channel Types Channel Phase

Own Direct

Web sales Live chat, Twitter, Facebook

Own stores Motorola Support - Service

Partner stores Verizon, AT&T. T-Mobiles & Sprint

Indirect
Partner

Web sales Amazon, Ebay etc.

Google is selling Motorola Mobility's smartphone business to Lenovo Group for $2.9 billion.
Motorola has produced the Moto smartphone in Fort Worth. Lenovo says it will continue the
Fort Worth operation. Fort Worth might not seem like an obvious choice, but Mark Randall
who is Motorola’s senior vice president of supply chain and operations thinks the city is
logistics heaven. There’s an industrial airport with a low tax rate, access to a large freight rail
network and the factory Motorola is moving into used to be a Nokia facility. The area is also
home to the so-called “telecom corridor” – where companies such as Verizon, Ericsson and
AT&T have offices.

Besides it is also close to the company's service and repair operations in Mexico. The factory
will be owned and run by Flextronics International Ltd., a Singapore-based contract
electronics manufacturer that has had a long relationship with Motorola. Assembly accounts
for relatively little of the cost of a smart phone. The cost largely lies in the chips, battery and
display, most of which come from Asian factories.

Revenue Streams: Basically Motorola Mobility's smartphones generates its revenue from main two
ways:-

1. Asset sale: User buys cell phones from a wide offered range of products like MotoX, Moto E,
Moto G and Droid. There are also other accessories contributing to their revenue streams
just like their newly offered Smart watch which is Moto 360.
2. Motorola Software and UI : Inthis portion the revenue is mainly generated from the
software and user interfaces that are produced by Motorola.

There could be another way of revenue stream for Motorola which is licensing as Motorola Mobility
Holdings Inc. (MMI) demanded $4 billion a year in patent royalties for use of technology critical to
functioning of the Xbox video-gaming system from Microsoft Corp. But that didn’t work out as
Microsoft and Apple Inc., which has its own patent battles with Motorola Mobility, have both filed
complaints with the European Union accusing the handset maker of misusing its patents on
standard-essential technology.