Motorola is owned by Lenovo and runs at a separate business. While many analysts expected Lenovo to merge Motorola, Lenovo continued with two brand strategy. It will also keep this strategy in the future but decided to retire ‘Motorola’ brand. Motorola will now be “Moto by Lenovo”.
Lenovo acquired Motorola back in January 2015 and the transition started from the day of acquisition. Lenovo has no plans to phase out Motorola but retiring brand is itself a big news. Motorola is one of the most loved brand. It was its brand name which helped it to have a good comeback in smartphone market with Moto G.
Motorola not only represent the mobile brand but it represent the era of initial development of mobile phones. we still remember the Moto Razr flip phones and “Hello Moto” ringtone. Motorola made the radios that helped Human in the travel to the moon on the Apollo missions.
This branding change is the strategy to let end consumers know that Moto is a part of Lenovo. So, it will help Lenovo to improve its brand value. I am not saying that Lenovo is not a big brand. But in smartphone market, Motorola is still a big brand.
Lenovo also used the similar kind of strategy when it acquired thinkpad division from IBM and slowly associated Thinkpad branding with Lenovo itself.
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