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Motorola China Announces 5-Year Strategy
Beijing, June 6, 2002--
Motorola China will further strengthen its leadership in the China market with the help of its newly introduced 2+3+3 strategy put forward by Tim Chen, new president of Motorola China.
Key messages from the strong management team of Motorola China at a press conference held in Beijing also include Motorola's long-term commitment to foster an unshakeable partnership with China and to create a bright future for China and Motorola's customers and partners in the country by enabling the Wireless Internet Ecosystem that is taking shape in China.
Teamwork Ensures Success
Besides Tim Chen, attending the press conference are Ng Tat K Wong GM of Solutions Marketing and Engineering of GTSS Greater China, SPS China Sales Director Yin Gang, CGISS China GM Richard Tan, China R&D Institute Chairwoman Karen Guo and Nathan Wang, GM of End-to- End Solutions of PCS A/P. These executives are from major business units and their appearance shows the great spirit of Motorola's teamwork that has helped the company lead the fast growing market of the world.
"In the past decades, Motorola China has been enjoying great successes in China under the Four-Point Strategy, which helped Motorola China become the largest foreign investor in China's electronics industry,'' said Tim Chen.
"Motorola's sales reached US $ 4.9 billion in 2001 to replace German's Volkswagon for the first time in nine years as the No. 1 among the Top 500 foreign-invested companies in China. Our handset business has been enjoying the No. 1 position for three consecutive years; Our GSM and CDMA infrastructure has kept strong momentum in China; Our two-way radios and networks set up the first Social Emergency Response Center and established the first iDEN trunking system in Shanghai; In the software field, Motorola is the first and up to now the only company to win the highest CMM 5 certificate; We also enjoyed very remarkable achievements in the fields of semiconductor and broadband."
The 2+3+3 strategy
Great changes in business and social environment have taken place after China's entry into the WTO, Beijing's successful bid for the 2008 Olympics and the successful reforms of China Telecom and China Netcom. Under such circumstances, Motorola's management team and its Board decided to adopt the new 5-year strategy in China.
According to Tim, the 2+3+3 strategy is an evolution of the previous Four-Point strategy the company has stuck to for the past 8 years. The new strategy can be explained as follows: the " '2' refers to building China into a world-wide manufacturing and R&D base. The first '3' refers to three new growth areas including semiconductors, broadband and digital trunking systems. The second '3' refers to three $10-billion goals: annual production value to reach $10 billion by 2006, accumulated invesment in China to reach $10 billion by 2006; and local purchasing to reach $10 billion in China within the next five years".
"The core of the new strategy is the same as that of the Four-Point Strategy: Win-Win for Motorola and China. Based on the new strategy, Motorola will continue to be a good Corporate Citizen in China, to deeply root itself in China and to be integrated into the China society. Our final goal is to become a genuine Chinese company by establishing an unshakable partnership with China. The 2+3+3 strategy will ensure our continuous success in China," Tim said.
Measures have been taking by all sectors to implement the 2+3+3 strategy. Motorola has adjusted its worldwide manufacturing capacity and has shifted some production to China. The company also decided to hire 4,000 more engineers and researchers and add 1 billion USD in R&D to the existing 18 R&D centers; A software center was built in China's Chengdu city last month; the GTSS and IESS held global procurement meetings in China this spring, and the Energy Systems Group plans to establish its Asian design and procurement headquarters in Shanghai.
Wireless Internet Ecosystem
During the conference, a forum was organized by Motorola to introduce the concept of Wireless Internet Ecosystem for the first time. The concept won strong support from heroes of China's Internet sector including Wang Zhidong, Wang Juntao and Fang Xingdong, whose appearances also aroused great interest from the media.
The participants agreed that now it's the right time for the convergence of Wireless and Internet. The reason: the operation of the GPRS system by China Mobile and the upcoming launch of CDMA 1X by China Unicom; the popularity of the SMS service and the great demand for data rather than voice services.
A reform is under way as operators are providing more value-added data services. A bright future can be forecasted with more advanced application enabled handsets like the Caller ID and mobile Internet surfing, larger network capacity and improved products and operator services.
"Cooperation and partnering should be emphasized as well as the Customer-as-the-core ideology," said Dr. Nathan Wang. "The new ecosystem will provide end users with better services. Success doesn't belong to any one business group but collectively, through teamwork we will succeed."
Mr. Wang Zhidong and Mr. Wang Juntao are very supportive of the concept of the Wireless Internet Ecosystem. According to them, "the convergence of Internet and Wireless will provide a new platform to transform Internet users to Mobile Internet users. A mobile office and an E-business style will be realistic for many Chinese small and medium-sized companies with the help of Motorola's new technology and products."
Motorola is a strong player in providing E2E services. So far the company has launched several GPRS handsets and has started providing hundreds of solutions including location based service, real-time stock trading, mobile office, picture and text downloading etc.
About Motorola
Motorola, Inc. (NYSE:MOT) is a global leader in providing integrated communications and embedded electronic solutions. Sales in 2001 were $30 billion.
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