Galvin's Fix-It Plan for Motorola
NEW PRODUCTS AND MARKETS
A new lineup of digital phones and pagers due out this fall and winter will give Motorola (MOT) a chance to gain lost ground in key wireless markets, especially in the U.S. The company also is betting on controversial investments in emerging industries, such as satellite communications and cable modems.
REORGANIZATION
By consolidating autonomous communications divisions, such as cellular phones and two-way radios, under one umbrella, Motorola hopes to better share resources and respond more quickly to customers. The semiconductor business is undergoing a similar streamlining.
COST CUTTING
Plans to slash annual manufacturing costs by 4%, or $750 million, and lay off 15,000 workers--including plant closings in the semiconductor and paging operations overseas--are expected to boost profits by mid-1999.
ACQUISITIONS AND PARTNERSHIPS
Long committed to developing technology internally, Motorola is now willing to partner with rivals and acquire companies with superior technological expertise. Its recent purchase of Starfish Software, which develops wireless software, was the 11th key alliance consummated since January.
DATA: BUSINESS WEEK
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