1 What Salient Opportunities and Threats Exist in Motorola's External Environment?

1. Fast Growing in Wireless Communication
The projected number of wireless phone users worldwide by year 2002 will exceed 1 billion. [6] Wireless communication provides a convenient solution for communication, cheaper solution for underdeveloped area as it saves cost of cabling and pole. The third generation of wireless communication will not only comprise of voice transmission, but also data transmission.

2. International Growth Opportunities
The world's last and largest marketplace -- China, is opening up her market to foreigner.   Under WTO agreement, China will remove the restriction on foreign investors in the area of wireless communication. Also, tariff will be reduced or remove for imported goods.

2. Lower Manufacturing Cost in Asia Pacific
The labor cost in Asia is relatively cheaper than in US and Europe. Taiwan, Singapore, and Malaysia can provide high technology labor force with lower labor cost. On the other hand, the number of manufacturing subcontractor and foundries for electronics industry is increasing in Asia region. The foundries can take the low-end assembly process to high-end wafer fabrication in a cost effective manner.

3. Increasing Demand on Intelligent Smart Chip
When the armed house is being broken in by thief, the security system will not only trigger the alarm, but also make phone call to owner's cellular phone and community police station. The advance electronics features require more sophisticated electronics control system. The estimated number of smart chips to be sold globally in next 5 years is 50 billion.

5. New Electronics Control System Embedded with Car
The annual worldwide demand projected for automotive electronics by 2002 will be US$ 26.5 billion. The embedded electronics system includes fuel injection controller, car alarm, Global Positioning System (GPS), etc.

  6. Advance TV Services and Home Networking
Estimated US cable industry revenue by 2005 through deployment of...