Innovation in a Reinvented World: 10 Essential Elements to Succeed in the New World of Business

Industry Snapshot: Technology and Telecommunications—Motorola, Inc.

Motorola Inc. invented the cell phone, popularizing it with its StarTac, before losing its lead to Nokia. The company regained its mojo with the launch of its ultrathin Razr (22 percent market share in 2006), only to see it slip away again with the company's slow entry into 3G, or the third-generation market, as Samsung and LG introduced several 3G phones early for use over next-generation wireless networks. Motorola sold its wireless network unit in 2010 to Nokia Siemens Networks for $1.2 billion in cash. Motorola Inc. split itself into two separate companies in January 2011: Motorola Mobility Inc. and Motorola Solutions Inc.

Motorola Mobility's challenge is to out-compete entrenched rivals Apple, Research in Motion, and Samsung, among others.

Shelled out too much money. Overpaid when it purchased bar code scanner maker Symbol Technologies in 2007 for $3.7 billion; wasted money on share buybacks in 2006 to 2007, repurchasing $6.8 billion of stock at an average cost of $20 per share.

Brought in new talent to right the ship. The ouster of CEO Ed Zander following the Razr's stalled 3G strategy ushered in a number of executives who rotated at the helm.

Lawsuit distractions. Activist Carl Icahn filed a lawsuit against Motorola. Apple's 2010 patent lawsuit against Google's Android and Motorola's Droid could distract the company from building out its product pipeline.

Samsung threw a curveball in early 2011. Korean device ...