Motorola 2013 Annual Report Download - page 5

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Our largest customer is the U.S. government (through multiple contracts with its various branches and agencies, including
the armed services), which represented approximately 8% of the segment's net sales and 6% of the Company's net sales in
2013. The loss of this customer could have a material adverse effect on our revenue and earnings over several quarters,
because some of our contracts with the U.S. government are long-term. All contracts with the U.S. government are subject to
cancellation at the convenience of the U.S. government.
Net sales in North America continued to comprise a significant portion of the segment’s business, accounting for
approximately 64% of the segment’s net sales in 2013 and approximately 63% in 2012.
Our sales model includes both direct sales by our in-house sales force, which tends to focus on our largest accounts, 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 in individual customers' operations, resellers and distributor 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 the vertical markets we serve.
Our Competition
The markets in which we operate are highly competitive. Key competitive factors include: product performance, product
features, product quality, availability, warranty, price, availability of vendor financing, quality and availability of service,
company reputation and financial strength, partner community, and relationships with key customers. Our strong relationships
with customers and partners, strong brand, technology leadership, breadth of portfolio, product performance and support
position us well for success.
We experience widespread competition from a growing number of existing and new competitors, including large system
integrators and manufacturers of private and public wireless network equipment and devices. Competitors include: Alcatel-
Lucent, Cassidian, Harris, Hytera, Kenwood, Sepura and Tait.
Large system integrators, such as Northrop Grumman and Raytheon, are seeking to move further into the government
customer space. We and our competitors may serve as subcontractors to large system integrators and are selected based on a
number of competitive factors and customer requirements. Where favorable, we may partner with large system integrators to
make available our portfolio of network infrastructure, devices, system software and applications and services.
Several other competitive factors may have an impact on our Government segment, including: evolving developments in
the 700 MHz band, increasing investment by broadband and IP solution providers, and new low-tier vendors. As demand for
fully integrated voice, data, and broadband systems continue, we may face additional competition from public
telecommunications carriers and telecommunications equipment providers.
Enterprise Segment
The Enterprise segment's products and services 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 2013, the Enterprise segment's net sales represented approximately 31% of Motorola Solutions' consolidated net
sales.
Our Industry, Products and Services
The Enterprise segment has the following principal product lines:
Enterprise Mobile Computing: We design, manufacture, and sell rugged and enterprise-grade mobile computing products
in a variety of specialized form factors for specific enterprise applications. These form factors include handheld mobile
computers, gun handle mobile computers, tablets, vehicle mounted computers and wearable computers. These specialized
computers are used in industrial applications (e.g. inventory management in warehouses and distribution centers), field
mobility applications (e.g. field service, post and parcel, and direct store delivery) and customer facing applications (e.g.
mobile point of sale and staff communication). Our product lines feature products based on both Microsoft and Android
operating systems and support local-area and wide-area voice and/or data communications. Our mobile computing products
often include barcode scanning, Global Positioning System (“GPS”) and RFID features. We also provide accessories and
software applications to complement our mobile computers.
Data Capture: We produce a wide array of bar code scanners and RFID products for a variety of verticals. Our bar code
scanning portfolio includes fixed, handheld and vehicle-mounted laser scanners and linear and area imagers. These devices can
collect and wirelessly decode bar codes and transmit the resulting data to enterprise systems. Our RFID products include fixed,
handheld and vehicle-mounted RFID readers. Our RFID product line is focused on passive ultra high frequency ("UHF")
technology and complies with the electronic product code global Generation 2 UHF standard and similar standards around the
world. We also provide accessories and software to complement our barcode scanners and RFID products.