By Sergio Buniac, President of Motorola Mobility and SVP of Lenovo’s Mobile Business Group
The mobile industry has experienced major changes over the past two years. With supply constraints, shifts in the competitive landscape, and quickly evolving consumer needs and behavior, it’s a constant battle to deliver consistent strong performance. Despite the exit of long-term players, the industry proved resilient, and worldwide smartphone sales grew 6% in 2021 according to Gartner.
However, the industry has proved volatile and the global smartphone market declined 7% YoY in Q1 2022 according to Counterpoint. The unpredictable nature of the market requires industry players to think differently, refine strategies, and deploy new initiatives to remain competitive and win in the market. At Motorola we have three areas of focus that I attribute to our continued growth and success in a turbulent market.
Adopting an Offensive Strategy
As consumers’ lives have shifted in recent years, so have their relationships with and expectations of their mobile devices. These rapidly evolving consumer needs have required smartphone manufacturers to identify opportunities for more meaningful innovation and to bring these solutions to market on a tighter timeline. This push for faster, more impactful innovation has heightened industry competition, with weaker players exiting the market altogether while remaining brands have been forced to adopt new strategies to stay in the game.
We know OEMs can no longer succeed by playing defense, rather they must adopt an offensive strategy, fighting not just to survive but to win. This means going beyond incremental upgrades and expected product development and investing in innovation pipelines that can deliver first-to-market technologies that extend further than the handheld smartphone to reshape the mobile experience.
What is perhaps most important when you examine this innovation pipeline is thinking long term and building in time and budget for trial and error, testing use cases, identifying potential partners, and building a to-market strategy. This is made possible by heavily investing in R&D and prioritizing innovation initiatives, like our Motorola 312 Labs, that allow us to dedicate resources and personnel to developing cutting-edge technology without the constraints of deadlines or production.
Strengthening Partner Relationships
Supply constraints have impacted nearly every industry, but these shortages don’t make strong performance impossible. At a time when the industry is facing component shortages, strengthening and prioritizing partner and customer relationships is a crucial part of continued success.
Strong relationships are an invaluable asset, allowing companies to leverage the strengths of partners, suppliers, and even customers to identify and pursue new opportunities for all involved to achieve success. Adopting a collaborative spirit, approaching all relationships with a consumer-first mentality, and working closely across diverse teams paves the way for companies to deliver more holistic and competitive solutions to consumers.
Doubling Down on Core Values
We know that now more than ever, consumers are migrating towards brands they can trust and relate to. This means it’s critical to evaluate core brand values and recognize areas to improve, expand, or evolve to ensure consumers are able to relate to and advocate for your brand. This is also crucial for strong performance, given 66% of Americans tend to buy from brands that reflect their personal values according to Ipsos.
Principles like trustworthiness and inclusivity are important to many consumers, but these values can’t just be words on a page. It’s necessary to find new ways to bring these values to life in front of consumers with clear actions and attitude. Then, personalizing your approach and adapting to meet them in their different points of the consumer journey can go a long way towards building trust.
As is in the name, core brand values should be at the center of any and all brand activity. Companies are set up for success time and time again when their actions ladder up to and support their core values. By investing in innovation and collaborating with industry partners while remaining true to their core values, mobile companies can not only succeed in the market but also push the industry forward.
About the author:
Sergio Buniac, President, Motorola, Senior Vice President, Lenovo
Sergio was appointed Lenovo MBG co-president and Motorola chairman and president in February 2018. In this role, Sergio leads all facets of Lenovo’s Mobile business, including R&D, product, sales, strategy, and supply chain, across global markets. In April 2021, Sergio’s scope expanded when he was appointed Lenovo IDG Latin America leader. As a 20-year veteran of Motorola, Sergio has held various leadership roles within the Company. Under Sergio’s leadership, the Company has returned to profitable growth, with 4 consecutive quarters of faster than market growth and 5 consecutive quarters of profitability. Sergio’s redefined business strategy has put the Company back on track, with many regions seeing significant market growth.
Besides global role, he is acting as senior vice president and general manager for MBG Latin America, responsible for the business strategy for all operations in the region. With his guidance, Brazil, Chile, Mexico, Argentina, Colombia and Peru, reached a solid #2 position in market share across Latin America. Previously, he spent three years in the U.S. leading the Strategic Planning and Companion Products businesses for the Americas region. Sergio also held leadership positions at IBM and Booz Allen Hamilton.
Sergio holds an MBA from the University of Chicago, a postgraduate degree from the Fundação Getúlio Vargas (FGV), and bachelor’s in Engineering from the University of São Paulo’s Escola Politécnica.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.