Motorola 2008 Annual Report Download - page 19

customers (which, collectively, are referred to as the “commercial enterprise market”). In 2008, the segment’s net
sales represented 27% of the Company’s consolidated net sales.
Principal Products and Services
We are the world’s leading provider of advanced mission-critical and commercial enterprise mobility networks,
services, applications and devices. In the government and public safety market, Motorola offers an extensive
portfolio of standard products and services that meet evolving public safety and security needs, including products
based on both TETRA (terrestrial trunked radio) and APCO 25 (Association for Public Safety Communications
Officials) standards, with nearly 80 years of experience in this space. In the commercial enterprise market, our
products and systems provide better information at the point of business activity, connect seamlessly, and present
tools to control the mobile experience. Our products include: two-way radios, mobile computing products,
advanced data capture products including barcode scanners and imagers, radio frequency identification (“RFID”)
infrastructure, software management, security tools and wireless infrastructure.
The segment’s products and services are sold stand-alone or as an integrated solution through Motorola’s
direct sales force and through independent and authorized distributors, dealers and value-added resellers,
independent software vendors, original equipment manufacturers and service operators. Distributors and value-
added resellers may provide a service or add components in order to resell our product to end users. The segment
provides systems engineering, installation and other technical and systems management services to meet its
customers particular needs. The customer may also choose to install and maintain the equipment with its own
employees, or may obtain installation, service and parts from a network of the segment’s authorized service centers
or from other non-Motorola service centers.
Our Industry
We compete in the mobile segment of the communications industry, providing wireless products and services
to public safety, government and enterprise customers.
Within our government and public safety market, interoperability and natural disaster preparedness continue
to be important issues for our customers worldwide. Our extensive portfolio of products includes integration
services, equipment and support packages for both of the major standards-based private network technologies,
APCO 25 and TETRA, as well as wireless broadband applications. As new and better spectrum utilization evolves,
we expect to see more demand and greater potential for broadband solutions and data applications, such as video
surveillance and other data-based products, in 2009 and beyond. While mission-critical communications and
homeland security remain high priorities for our customers, we have seen reduced spending in the construction and
manufacturing markets due to the global market conditions, and expect this to continue in 2009.
Within our commercial enterprise market, we believe there continues to be long-term opportunity for growth
as the global workforce continues to become more mobile and the industries and markets that purchase our
products continue to expand. The markets in which Motorola competes include mobile computing products and
services, enterprise wireless infrastructure, bar code scanning, RFID products and services, and mobile network
management platforms. Organizations looking to increase productivity and derive benefits from mobilizing their
applications and workforces are driving adoption in this market. In 2009, given the current global economic
conditions and customer capital expenditure constraints, we expect reduced spending in the commercial enterprise
market.
Our Strategy
The segment’s strategy is to maintain our global leadership positions in the government and public safety and
commercial enterprise markets through the continued delivery of mobile products and services and systems that
meet our customers’ demand for real-time information everywhere.
Our strategy in the government and public safety market is to enable our customers to focus on their missions,
not the technology. This is accomplished by providing mission-critical systems, seamless connectivity through
highly reliable voice and data networks and a suite of advanced applications that provide real-time information to
end users. Key objectives in maintaining our leadership position include: (i) continuing investment in our analog
radio portfolio while leading the ongoing migration to digital products, (ii) leveraging our wireless broadband
portfolio to drive growth and enter new markets, (iii) managing the potential public/private convergence of
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