Abstract

Motorola invented mobile telephones and by the end of the 1980s came to dominate the mobile handset market with more than an 80% market share. A few years later, Motorola faced a key strategic choice of whether to focus its considerable resources on consolidating its dominance of the analog handset market or to shift these resources to emerging digital handset technologies. This decision shaped the handset industry and the role Motorola will play in it for the next decade.To illustrate incumbents' puzzling inertia toward initiating and participating in disruptive technologies.

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