Motorola 2012 Annual Report Download - page 11

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Enterprise segment
The Enterprise segment designs, manufactures, sells and provides services around rugged and enterprise-grade mobile
computers, including tablets, data capture devices, security products and applications, and WLAN and iDEN infrastructure.
These are sold to a wide range of enterprise customers, including those in retail, hospitality, transportation and logistics,
manufacturing, warehouse and distribution centers, energy and utilities, education and healthcare. In 2012, this segment's net
sales represented approximately 31% of our consolidated net sales.
Our Industry, Products and Services
Our enterprise customers are continuously looking to improve their operational efficiency as well as to increase their top
line through superior customer service. We believe that long-term growth opportunities exist within the Enterprise segment, as
the global workforce continues to become more mobile and enterprise customers continue to focus on improving their
workforce efficiency and productivity. Our sales growth is driven by helping our customers mobilize their workforce and
improve their customer service.
We offer a comprehensive portfolio of enterprise grade solutions, including devices, infrastructure, applications and
services. These include rugged mobile computers and tablets, laser/imager/RFID based data capture devices and kiosks,
WLAN switches, controllers and access points, network and device management software, network and device security
software, voice-based integrated solutions, and systems based on iDEN technology. Our service offerings in this segment have
been primarily related to product support. However, we are expanding our services offerings to also include network
integration and network and device management, as well as mobility consulting.
Our Strategy
Our strategy in the Enterprise segment is to deliver the next generation of enterprise mobility to empower the mobile
worker, enable real-time asset visibility and engage the smart consumer. We have identified key areas of innovation that will
enable successful implementation of this strategy. These include advanced devices, enhanced information capture and analysis,
adaptive networking solutions, integrated voice and data communications, applications and services. We are expanding our
devices portfolio to address the needs of an increasingly mobile workforce. Our products and services are designed to improve
our customers' operations through real-time asset visibility and integrated/adaptive communications networking solutions. Our
portfolio of wireless infrastructure and device products is complemented by applications and services, which are designed to
help our customers achieve their business objectives. We are seeking to further expand our services offerings over the lifecycle
of these products.
Our Customers
We address the communication and data capture needs of enterprise customers including those in retail, hospitality,
transportation and logistics, manufacturing, warehouse and distribution centers, energy and utilities, education and healthcare.
These customers operate a large and diverse mobile workforce and are continuously focused on improving their operations
through greater employee efficiency, greater asset visibility and superior customer service. Our product and services portfolio
delivers attractive return on technology investment for our customers. In addition to serving our existing customers, we believe
that we have opportunities to pursue profitable growth by extending our reach across new vertical markets.
Our sales model includes both direct sales by our in-house sales force and sales through our channel partner program.
Our channel partners include distributors, value added resellers and independent software vendors. Resellers and distributors
each have their own sales organizations that complement and extend the reach of our sales force. With deep expertise about
specific customers' operations, resellers are very effective in promoting sales of our product portfolio. The independent
software vendors in our channel partner program offer customized applications that meet specific needs in each vertical market
we serve. Our Enterprise segment utilizes our channel partners more extensively than our Government segment, as the
products of this segment generally support a broad range of applications.
Our Competition
The markets in which we operate are highly competitive. Economic pressure, growth of mobile workers worldwide,
industry consolidation, business model evolution and technology shifts are creating opportunities for established and new
competitors. Key competitive factors include product and services portfolio breadth, product performance, product and service
availability and warranty, product and service quality, strength of company relationships with customers and partners, and
company reputation. Our strong relationships with customers and partners, strong brand and history of innovation, product
portfolio breadth, strong position in data capture technologies, superior product design and performance, evolving services
offerings and business model flexibility position us well for success.
We experience widespread competition from a growing number of existing and new competitors, including present
manufacturers of laser/imager/RFID based data capture devices, optical instruments, notebook computers and tablets, smart
phones, cordless phones, and cellular/WLAN/wired infrastructure equipment. Competitors include: Apple, Aruba, Bluebird,
Cisco, Datalogic, HP, Honeywell, Intermec, Panasonic, and Samsung.