Motorola: China Experience (Case #18, Notes) Overview The case analyzes Motorola s operations in…

Motorola: China Experience (Case #18, Notes) Overview The case analyzes Motorola s operations in China, the overall Chinese cellular phone industry, and Motorola s current marketing strategies. An overview analysis of market structure, including the wireless service providers controlled by the central government is provided in the case. This control by the socialist government s company planning and reward structure presents a unique situation for corporate competitive planning with unusual market barriers to entry. The large consumer base makes developing operations in China potentially extremely profitable and worthwhile despite the unique government regulatory structure. Due to telecommunication s recent modernization in China, competition in the cell phone industry is intense among foreign and domestic firms. Motorola no longer maintains a dominant market share, so it must leverage its in-house marketing and production capabilities to regain market position. China s market size, growth rate, and competitive forces present unique challenges for Motorola and the other companies entering the cell phone market there. An underlying problem identified in the case is the report on market competition that Brian Lu, a Motorola China executive, has just received. The competitive pressure from the locally owned producers and the government s support of these producers has Brian worried. Dealing with competition from other foreign producers has been challenging enough, and now