Motorola: The Celebrated Outsider

The first person-to-person SMS message originated in Finland in 1993, and interestingly, the growth of the cellphone has coincided with us Millennials in more ways than just a common timeline. Just as our most formative years come between ages 0-4 and 18-22, the commercialized cell phone era has experienced early growth and adult formation, sparked by Nokia and Apple/Google respectively. Furthermore, just as we Millennials went through the awkward middle school phase plagued by acne, uncomfortable dances, and an astronomically high metal-to-teeth ratio per capita, cell phones experienced growing pains in the mid 2000s.

Many companies had visions for what the post-Nokia brick cell phone should be, and many of those ideas fizzled out from too many gimmicks and a novel market (I think we all remember the Samsung Juke...yeah...). However, while some phones floundered through electronic adolescence, one phone actually thrived:Motorola's Razr. From 2004-2006, Motorola sold over 150 million of its aircraft grade aluminum devices, and the Razr set the standard for what it means (even today) to be a “thin” phone.

Fast forward a few years. The cell phone matures into the smartphone via Apple in 2007, and the entire landscape changes. Razr is no longer the hot item, and Motorola tries again with the droid line of phones. While Android as an operating platform flourishes, Motorola’s identity got lost in the mix with the likes of LG, Samsung, and HTC, and Motorola fades into the crowd.

In fact, I would bet that the most popular fact about Motorola people know today is that Google sold them to Lenovo; ask people to pull a Moto G out of a smartphone line up, and I suspect many would fail to identify it even though it is the best selling phone in Motorola history. However, ask the same group to identify Motorola’s correct logo, and an overwhelming number would do so successfully.

Ok, at this point, it may seem that I’m advocating for Motorola, but that is not my position. Rather, Motorola intrigues me based on one fundamental question: how can a surviving company have such great name recognition without having its products lead in any category?

After some thought, I think the answer lies in an unorthodox competitive advantage: being the celebrated outsider. Take a look at the new Moto X Style (or Pure depending on your orientation with the Atlantic); this phone breaks all the rules:

• Premium specs, non-premium price
• Direct B2C distribution channels (sorry AT&T and Verizon)
• Moto maker customization (no debate between just Space Gray and Rose Gold)

Imagine if Apple or Samsung broke all of these rules, especially regarding distribution channels. Leaving AT&T, Sprint, Verizon, and T-Mobile out of the mix would cause a global uproar; however,  Motorola's release event for these phones highlighted this deviation, and nobody panicked. Some may attribute this to the fact that Motorola is no longer relevant in the phone space, but I disagree.

Over the past 5 years, Motorola has outperformed the market, and its portfolio is diversified across numerous commercial electronic industries. The new line of Moto X smartphones have scored high marks across all categories, and the Moto G is inching into leadership internationally. Motorola is here to stay.

 

So, this goes back to them being the celebrated outsider. Motorola has optimized the tradeoff between visibility and speed, and this has allowed them to move swiftly with new strategies. The Moto Maker capabilities for their smartphones adds considerable complexity to Motorola’s supply chain, but Motorola can do that because they are the outsider. Trying new ideas in the smartwatch scene with the Moto 360 is risky, but Motorola can do that because they are the outsider. Motorola’s new Moto X line might be the next Razr, but even if it isn’t, Motorola is swift enough to correct the course.