Poor marketing strategy costs Motorola CEO Ed Zander his job
Forbes reports today that Motorola CEO Ed Zander is stepping down from the CEO position. Why? Well, the article posits that the primary reason is just bad marketing:
Anyone can buy market share by giving up profits. Good marketing increases profits; great marketing increases profits and market share. And while Zander stepping down will provide the illusion that the company is changing, its fortunes won't change until its marketing improves.
Full disclosure: the author has no position in Motorola, but does own shares in Apple, Inc, which competes in mobile phones with Motorola.
A two-year run of success Motorola enjoyed following the launch of its Razr phone began crumbling last year after sales slowed and the company admitted it had been trading profit margins for global market share by aggressively undercutting pricing.
Anyone can buy market share by giving up profits. Good marketing increases profits; great marketing increases profits and market share. And while Zander stepping down will provide the illusion that the company is changing, its fortunes won't change until its marketing improves.
Full disclosure: the author has no position in Motorola, but does own shares in Apple, Inc, which competes in mobile phones with Motorola.
posted by Carl Howe at
10:20 AM
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