Business Analysis of Motorola Solutions

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Motorola Solutions

MOTOROLA SOLUTIONS

Business Overview

Motorola Solutions, Inc. provides mission-critical communication infrastructure, devices, accessories, software, and services in North America, Latin America, the Asia Pacific, the Middle East, Europe, and Africa. The company operates in two segments, Products and Services. The Products segment offers a portfolio of infrastructure, devices, accessories, and software for government, public safety and first-responder agencies, municipalities, and commercial and industrial customers. This segment's products include two-way portable radios and vehicle-mounted radios; accessories, such as speaker microphones, batteries, earpieces, headsets, carry cases, and cables; software features and upgrades; and radio network core and central processing software, base stations, consoles, repeaters, and software applications and features. The Services segment provides integration services, such as implementation, optimization, and integration of networks, devices, software, and applications; and managed and support services, such as repair, technical support, and hardware maintenance services, as well as network monitoring, software maintenance, and cyber security services across radio network technologies, command center consoles, and smart public safety solutions. This segment also offers Integrated Digital Enhanced Network (iDEN), a push-to-talk technology, as well as provides iDEN services, including hardware and software maintenance services for its legacy iDEN customers. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. Motorola Solutions, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.

Motorola Solutions

Motorola Solutions


R&P Rank: 441
Sector: Telecommunications
Industry:Communication Equipment
H.Q Location:Illinois
Website: www.motorolasolutions.com
Company Address:
500 W. MONROE ST., CHICAGO IL 60661
Ph:847-576-5000

Business Analysis of Motorola Solutions

The Telecommunications Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Motorola Solutions compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Motorola Solutions to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Motorola Solutions with an interactive chart.

  1. Revenue Growth: Motorola Solutions reported a revenue growth of 6.0% year-on-year during 2016. Communication Equipment Industry grew at 18.7% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Motorola Solutions spent 52.5% of its total revenues on COGS. Communication Equipment industry average (COGS share of revenue) in the same period was 57.5%
  3. R&D share of Revenues: As a percentage of revenue, Motorola Solutions spent 9.2% of its total revenues on R&D. Communication Equipment industry average R&D spending in the same period was 5.6%
  4. SG&A share of Revenues: As a percentage of revenue, Motorola Solutions spent 16.6% of its total revenues on Sales, Marketing, and General Administration (SG&A). Communication Equipment industry average SG&A spending in the same period was 15.2%
  5. Inventory share of Revenues: As a percentage of revenue, Motorola Solutions spent 4.5% of its total revenues on Inventories. Communication Equipment industry average Inventory spending in the same period was 7.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Motorola Solutions invested 9.2% of its total revenues on Accounts Payable (A/P) Communication Equipment industry average Accounts Payable investment in the same period was 9.0%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Motorola Solutions invested 23.4% of its total revenues on Accounts Receivable (A/R). Communication Equipment industry average Accounts Receivable investment in the same period was 18.1%
  8. PP&E share of Revenues: As a percentage of revenue, Motorola Solutions invested 13.1% of its total revenues on Property, Plants, and Equipments (PP&E). Communication Equipment industry average PPE investment in the same period was 48.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Motorola Solutions invested 12.1% of its total revenues on Intangibles. Communication Equipment industry average Intangibles investment in the same period was 90.9%
  10. Net Margins: Motorola Solutions Net Margins in the year 2016 were 9.3%. Communication Equipment industry average Net Margins in the same period were 5.0%

Sector and Industry Association of Motorola Solutions

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Motorola Solutions is associated with Telecommunications Sector and Communication Equipment Industry.

Telecommunications sector is comprised of the following industries: Telecom Services; Communication Equipment. The definitions for each of the industries is as follows:

  • Telecom Services industry includes providers of fixed-line and mobile telephone services.
  • Communication Equipment industry includes providers of communication equipment to the telecom service providers. It also includes companies that own, operate, and lease mobile site towers to multiple wireless services providers.

Industry Ranking of Motorola Solutions

With $6 billion revenues, Motorola Solutions ranked number 3 of all the companies in the US Communication Equipment industry. There were a total of 27 public companies in the US Communication Equipment industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Communication Equipment industry by revenues during 2016 were:

  1. Harris ($7.5 billion)
  2. Arris International ($6.8 billion)
  3. Motorola Solutions ($6 billion)
  4. American Tower ($5.8 billion)
  5. CommScope ($4.9 billion)
  6. EchoStar ($3.1 billion)
  7. Belden ($2.4 billion)
  8. SBA Communications ($1.6 billion)
  9. ViaSat ($1.4 billion)
  10. Lumentum Holdings ($903 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Motorola Solutionsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of motorola-solutions

Harris (HRS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Harris Corp with $7 billion revenues in the year 2016 was the number 1 Communication Equipment company. Read this report to know the top competitors of Harris and identify growth and cost optimization opportunities of Harris

Arris International (ARRS) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Arris International Plc with $7 billion revenues in the year 2016 was the number 2 Communication Equipment company. Read this report to know the top competitors of Arris International and identify growth and cost optimization opportunities of Arris International

American Tower (AMT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

American Tower Corp with $6 billion revenues in the year 2016 was the number 4 Communication Equipment company. Read this report to know the top competitors of American Tower and identify growth and cost optimization opportunities of American Tower

CommScope (COMM) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

CommScope Holding Company, Inc. with $5 billion revenues in the year 2016 was the number 5 Communication Equipment company. Read this report to know the top competitors of CommScope and identify growth and cost optimization opportunities of CommScope

EchoStar (SATS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

EchoStar Corp with $3 billion revenues in the year 2016 was the number 6 Communication Equipment company. Read this report to know the top competitors of EchoStar and identify growth and cost optimization opportunities of EchoStar

Belden (BDC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Belden Inc. with $2 billion revenues in the year 2016 was the number 7 Communication Equipment company. Read this report to know the top competitors of Belden and identify growth and cost optimization opportunities of Belden

Revenues Analysis

Motorola Solutions (MSI) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Motorola Solutions, Inc. (MSI) from 2012 to 2016. Motorola Solutions generated a total of $6 billion revenues during 2016. Motorola Solutions reported a revenue growth of 6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Motorola Solutions (MSI) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Motorola Solutions, Inc. (MSI) from 2002 to 2016. Motorola Solutions generated a total of $6 billion revenues during 2016. Motorola Solutions reported a revenue growth of 6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Motorola Solutions (MSI) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Motorola Solutions, Inc. (MSI) revenue growth with Communication Equipment industry growth during the last five years from 2012 to 2016. Motorola Solutions reported a revenue growth of 6% year-over-year during 2016. The Communication Equipment industry growth was 18.7% year-over-year during 2016. Motorola Solutions growth was slower than the industry during 2016.

Profit Analysis