Motorola 2013 Annual Report Download - page 6

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WLAN: We bring wireless broadband capabilities and WLAN primarily to retail, transportation and logistics, and to
hospitality enterprises through WLAN switches, controllers, and access points. Our WLAN solution is optimized for these
enterprise needs, including an architecture which minimizes the information technology resources required in retail branches,
indoor and outdoor access for distribution centers, and access points designed specifically for hospitality guest rooms.
iDEN: We design and deliver network infrastructure, software, and services supporting the iDen mobile communication
technology. iDEN infrastructure provides integrated trunked radio, cellular telephone, and data services.
Services: Our Enterprise service offerings have historically been primarily related to product support. However, we have
expanded 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 technologies to empower the mobile worker, enable real-time asset
visibility and engage the smart consumer. We invest in R&D to maintain technology leadership in key product technologies
such as scanning and imaging engines. We also continuously invest in refreshing the technology and capabilities of our main
product lines and in creating the next generation of category leading products. Our goal is to be able to offer the broadest
product portfolios in this segment's verticals to help capture new customers and offer the best product alternatives to current
customers in need of new products. We are also a global business and continuously work to increase our presence and position
in the largest and fastest growing markets in the world. 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.
In our Enterprise Mobile Computing product group, we are expanding our devices portfolio to address the needs of an
increasingly mobile workforce. We are also helping our customers navigate an industry transition in mobile operating systems
by offering products with both Microsoft and Android operating systems. In addition, we offer our RhoMobile Suite, a set of
development tools that help businesses write, integrate, deploy and manage applications on enterprise devices that work across
platforms, from iOS and Android to Windows Mobile. In our Data Capture product group, we are investing in 2D imaging
technology and products in order to be well positioned as the industry transitions from 1D laser based barcodes to 2D barcodes.
We are also expanding our devices portfolio to address new markets, including bioptic and linear scanning and imaging. In our
WLAN product group, we are investing in application and services to complement our portfolio of wireless infrastructure and
device products in order to help our customers achieve their business objectives.
Our Customers
Our products and services are sold to a wide range of enterprise customers, principally those in retail, transportation and
logistics, including warehouse and distribution centers, manufacturing, hospitality, 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 deepening our reach across lesser served vertical markets.
For example, our Psion acquisition in 2012 improved our position in industrial manufacturing, shipping yards, and cold chain.
Net sales in North America continued to comprise a significant portion of the segment’s business, accounting for
approximately 44% of the segment’s net sales in 2013 and approximately 47% in 2012.
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, history of innovation, product
portfolio breadth, strong position in data capture technologies, superior product design and performance, and evolving services
offerings, which allow our customers to outsource significant portions of their network management needs, position us well for
success.