三星战略TO西门子(1).ppt

SAMSUNG010605BJ-kickoff2,CONFIDENTIAL,Mobile Handset Competitor Analysis:Siemens,SAMSUNG ELECTRONICS CHINA(SEC China),This report is solely for the use of client personnel.No part of it may be circulated,quoted,or reproduced for distribution outside the client organization without prior written approval from McKinsey it is not a complete record of the discussion.,SAMSUNG010605BJ-kickoff2,1,OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK,1.Background information,LocationRegistered capitalManagementteamEquitystructure,Starting yearNumber of employeesEra analysis,4.Value chain strategy,5.Organization and ownership,6.Financial performance,Focus onMarketing,advertising and promotionDistribution(channel and sales force),Organization structureOwnership structure,Sales Profit,2.Strategy,3.Product/market,MissionVisionCorporate strategyMarket position,Key product offeringsKey customersValue propositionGeographic focusPricing,SAMSUNG010605BJ-kickoff2,2,KEY ISSUES TO PROBE-SIEMENS,Strategy,Product/market,Value chainstrategy,Organization&ownership,Financialperformance,What does Siemens aim to be in 2005 in mobile communication?How are Siemenss product and value delivery system strategies different from its competitors?What will be Siemenss future products and which segments of the market will it target at?In which segment of the market is Siemens strong or weak?What is the key success factors for Siemens to pick up market share quickly since 1999?How does Siemenss distribution channel differ from its competitors?How capable is Siemens in R&D,manufacturing,sales and marketing?With a broad product portfolio,how does Siemens organize or reorganize itself?How does Siemens perform and is its performance expected to improve further?,SAMSUNG010605BJ-kickoff2,3,BACKGROUND INFORMATION,1.Background information,LocationRegistered capitalManagementteamEquitystructure,Starting yearNumber of employeesEra analysis,4.Value chain strategy,5.Organization and ownership,6.Financial performance,Focus onMarketing,advertising and promotionDistribution(channel and sales force),Organization structureOwnership structure,Sales Profit,2.Strategy,3.Product/market,MissionVisionCorporate strategyMarket position,Key product offeringsKey customersValue propositionGeographic focusPricing,SAMSUNG010605BJ-kickoff2,4,CHINA HAS DEVELOPED INTO A MAJOR PILLAR FOR SIEMENS BUSINESS IN ASIA PACIFIC,Based at Germany50+JVs,28 offices in China Shanghai is the largest Siemens location outside Germany,Invested USD 0.44 billion in China,All business sectors of Siemens including information and communication,automation and control,power,transportation and household appliance,etc.,Entered Chinas telecommunication in 1985Information and communication business started 1991,30,000 staff in information and communication mobile globally25,000 employees for all business sectors in china,1982 Siemens Beijing office opened1985 entered Chinas telecommunication market1990 established JV Beijing International Switching System1994 Siemens China founded in Beijing1998 formed business segment-Information and Communication2000 joined forces with CATT and Huavei for next generation mobile technology.Founded TD-SCDMA international forum with Datang,CATT,Huawei,Motorola,Nortel,China mobile,and Unicom,Implication,An early entrant to Chinas telecommunication marketBroad product portfolio representing all business sectors of Siemens worldwide,Source:Siemens press release,SAMSUNG010605BJ-kickoff2,5,STRATEGY,1.Background information,LocationRegistered capitalManagementteamEquitystructure,Starting yearNumber of employeesEra analysis,4.Value chain strategy,5.Organization and ownership,6.Financial performance,Focus onMarketing,advertising and promotionDistribution(channel and sales force),Organization structureOwnership structure,Sales Profit,2.Strategy,3.Product/market,MissionVisionCorporate strategyMarket position,Key product offeringsKey customersValue propositionGeographic focusPricing,SAMSUNG010605BJ-kickoff2,6,SIEMENS AIMS TO BE NUMBER 2 IN MOBILE COMMUNICATION MARKET IN CHINA,Focus on stylish new models with suitable pricing targeting mid to low end of the market Invest in future products,e.g.,TD-SCDMA handsets and wireless home network devices,etc.,Strategy,Establish R&D centers for mobile communication in Beijing and Shanghai Mobile handset production capacity being raised to 14 million in Shanghai,a growth of 40%since 2000Intensive marketing on new products with most competitive pricing Carefully select exclusive channel partner PTAC to maintain uniform price level nationwide to ensure healthy sales Helps resellers set up service centers to handle repair and maintenance,VisionTo be number 2 in the Asian mobile communication market(without Japan and Korea),SAMSUNG010605BJ-kickoff2,7,SIEMENS IS RISING STEADILY IN MOBILE HANDSETS SINCE 1999,Monthly market share development(Percent of market in units sold),98,99,Jan 00,Dec 00,Nokia,Motorola,Siemens,Ericsson,Source:Retail Audit,Source:IDC,McKinsey Analysis,SAMSUNG010605BJ-kickoff2,8,SIEMENS HAS OVERTAKEN ERICSSON TO BE NO.3 IN MOBILE HANDSET BY BOTH REVENUE AND SALES VOLUME,Others,Siemens,Ericsson,Motorola,1999,2001,2000,Samsung,Nokia,Breakdown of sales by brand each yearPercent,Source:GfK,IDC,McKinsey analysis,Others,Siemens,Ericsson,Motorola,1999,2001,2000,Samsung,Nokia,Breakdown of units sold by brand each yearPercent,SAMSUNG010605BJ-kickoff2,9,PRODUCT/MARKET,1.Background information,LocationRegistered capitalManagementteamEquitystructure,Starting yearNumber of employeesEra analysis,4.Value chain strategy,5.Organization and ownership,6.Financial performance,Focus onMarketing,advertising and promotionDistribution(channel and sales force),Organization structureOwnership structure,Sales Profit,2.Strategy,3.Product/market,MissionVisionCorporate strategyMarket position,Key product offeringsKey customersValue propositionGeographic focusPricing,SAMSUNG010605BJ-kickoff2,10,Siemens offers a compete range of mobile communication solutions including devices,infrastructure and applications.Siemenss mobile handsets come with good quality and competitive pricingSiemens targets the mid to low end of the mobile handset market.Most of its models are in the price range from below RMB 1000 to RMB 2200Siemens has devoted great attention to the important 4th-tier cities and west China,hence its market share in these developing areas are relatively higher than its share in the more developed areas.,KEY MESSAGES-PRODUCT/MARKET,SAMSUNG010605BJ-kickoff2,11,SIEMENS OFFERS A COMPLETE RANGE OF MOBILE SOLUTIONS INCLUDING DEVICES,INFRASTRUCTURE AND APPLICATIONS,Products,Now and future,Information and communication mobile,Siemens product offerings,Information and communication networks,Mobile networkWireless home network&office networkMobile handsetC2588(small,light smart)S2588(brain truster)3508(small,light,sexy)3518i(tough enough)3568i(smart thinking),Broadband networkIP networkFixed-line networkTransmission networkOffice networkCable network,Take TD-SCDMA mobile handsets to serial production level by 2003Offer the complete range of mobile solutions including mobile devices,infrastructure and applications,e.g.,wireless home network,Complete range of GSM,GPRS and UMTS mobile networks,unified messaging and mobile payment,Overall strategy of a universe of one,pursuingIP driven voice and data communication and customer-oriented end-to-end solution and services,Source:Siemens press release,SAMSUNG010605BJ-kickoff2,12,SIEMENS MODELS HAVE THE MOST COMPETITIVE PRICING,Source:McKinsey Analysis,Product positioning Dec 2000,A6188(1.4%),8850(1.8%),V8088*(3.9%),S800C(1.2%),A100(0.8%),T28(3.6%),8210(4.6%),7.8%,21.9%,18.2%,52.2%,Business/professional,Personal,*WAP phone,Product positioning June 2000,9110,S800C(1.8%),V8088(1.6%),8850(1.7%),V998(5.6%),3568*(0.5%),S600C(3.8%),7110*(0.9%),T28(3.3%),8210(3.7%),LF2000*(2.9%),6150(1.8%),L2000*(4%),S2588(1.8%),CD928(1.1%),T18(6.1%),T10(1.2%),C2588(3.2%),2188(3.8%),L2088(2.5%),3210(2.2%),5110(9.6%),368C(3.1%),3508(1.6%),338C(0.6%),T2688(4.8%),11.4%,17.4%,25.3%,45.9%,High,High-medium,Medium-low,Low,Business/professional,Personal,*WAP phone,V998+(6.9%),7689i(1.8%),LF2000i*(1.7%),3568*(1.7%),7110*(0.3%),6150(0.9%),600C(2.3%),3310(6.8%),3518i(1.8%),T18(3.3%),CD928(0.1%),S2588(0.2%),C2588(0.1%),T10(0.7%),T2688(6.2%),3508(3.9%),V2088(1.0%),3210(9.6%),5110(5.9%),Retail price,High,High-medium,Medium-low,Low,Retail price,RMB 3,500,RMB 2,200,RMB 1,600,368C(2.3%),V2188(1.3%),RMB 3,500,RMB 2,200,RMB 1,600,Red-NokiaWhite-MotorolaBlue-EricssonBrown-SiemensGreen-Samsung,8250(0.0%),6210(0.6%),SAMSUNG010605BJ-kickoff2,13,SIEMENS TARGETS MID TO LOW END OF THE MARKET,High(RMB 3,500),Source:Sino-MR(Jan 2001 Feb 2001),CCID,Breakdown of unit sold by brand for each price pointPercent,High-mid(RMB 2,500-3,500),Mid(RMB2,000-2,500),Mid-Low(RMB1,500-2,000),Low(RMB1,500),Others,Siemens,Ericsson,Motorola,Samsung,Nokia,9%,15%,7%,Units as%of total,26%,43%,7,SAMSUNG010605BJ-kickoff2,14,Tier 1,Tier 2,Tier 3,Tier 4,Nokia,Motorola,Others,SIEMENS ALSO ADDRESSES THE IMPORTANT 4TH TIER CITY MARKET,Percent market share,2000,Ericsson,Siemens,18%,19%,23%,40%,Tier size as%of total,100%=,Million units,6.7,7.0,8.5,14.8,Source:McKinsey Analysis,SAMSUNG010605BJ-kickoff2,15,SIEMENS IS RELATIVELY STRONG IN CENTRAL,EAST AND WEST,Market share by brands per geographic area,2001Percent,Market share by geographic areaPercent,East,Siemens,Ericsson,Samsung,Others,Nokia,Motorola,West,North,North-east,South,30,13,15,13,11,Central,18,Source:GfK,McKinsey Analysis,SAMSUNG010605BJ-kickoff2,16,VALUE CHAIN STRATEGY,1.Background information,LocationRegistered capitalManagementteamEquitystructure,Starting yearNumber of employeesEra analysis,4.Value chain strategy,5.Organization and ownership,6.Financial performance,Focus onMarketing,advertising and promotionDistribution(channel and sales force),Organization structureOwnership structure,Sales Profit,2.Strategy,3.Product/market,MissionVisionCorporate strategyMarket position,Key product offeringsKey customersValue propositionGeographic focusPricing,SAMSUNG010605BJ-kickoff2,17,Siemenss value delivery system strategy has evolved since 1999.It has invested$1.5 billion in the Asian Pacific area as its Asian offensive campaignSiemens has spent a great effort in localizing R&D and manufacturing.It has built R&D centers in Beijing and Shanghai and has raised the mobile handset production capacity in Shanghai to 14 million units in 2001.It is a leader in TD-SCDMA 3G technology in China Siemens has achieved a market share of 12%in sales volume,after intensive marketing of new models with competitive pricing,and aims to increase its market share to 15%Siemens distributes through exclusive 1st-tier national reseller PTAC and 2nd-tier provincial resellers.A uniform price level in the market is maintained nationwide to ensure healthy sales.,KEY MESSAGES-VALUE CHAIN STRATEGY,SAMSUNG010605BJ-kickoff2,18,SIEMENS VALUE DELIVERY SYSTEM HAS EVOLVED OVER THE YEARS,From.(1997),To.(2000),No R&D facility in ChinaNo product localizationProduction capacity in Shanghai Pudong(150,000)60%of products for Chinese market produced in Hong KongBrightpoint handling over 90%of distributionMarket share less than 5%,ProductProduction DistributionMarketing,High commitment to TD-SCDMA tests across China in 2001Asian offensive campaign with US 1.5 billion investment in R&D and marketing until 2003Production capacity in Shanghai has been raised to 14 million units from 10 million units in 2000 Uses different distributor(PTAC),but still only one nationwideMarket share 12%as a result of intensive marketing of new models with competitive pricing,Aims to increase market share to 15%,Source:Interviews,McKinsey analysis,SAMSUNG010605BJ-kickoff2,19,SIEMENS INVESTS TREMENDOUS EFFORT IN EVERY PART OF THE VALUE CHAIN,Strengths,R&D centers for mobile communication in Beijing and Shanghai with more than 500 engineers planned Lead international forum in TD-SCDMA Frequent introduction of new models,Continuously increase local production capacity and capability,Intensive marketing on new models with competitive pricing,Healthy sales through exclusive channel partner PTAC,Capable after-sales service with 100 service stations nationwide,Levers for improvement,Lacks capability in W-CDMA and CDMA 2000,Fully dependent on single national distributor,Source:World computer journal,McKinsey analysis,SAMSUNG010605BJ-kickoff2,20,SIEMENS VALUE DELIVERY SYSTEM IS ORGANIZED AROUND PRODUCT LINES WITH MULTIPLE CUSTOMER INTERFACES,Value delivery system,Customer interfaces,IC Mobile and IC Network communicate with the same telecom operators separately,with“multiple faces”,Source:McKinsey analysis,SAMSUNG010605BJ-kickoff2,21,SIEMENS DISTRIBUTES THROUGH EXCLUSIVE NATIONAL RESELLER PTAC,Source:IDC,RationalesSiemens partners with PTAC,taking advantage of their streamlined and efficient distribution channels.PTAC is selected as the exclusive national distributor due to resources and image.A uniform price level in the market is maintained nationwide to ensure healthy sales,Siemens Channel Structure,Rely on both 1st-tier national reseller PTAC and 2nd-tier provincial resellersDevote much attention to low-tier city market,Vendor,1st-tier resellers,Consumers,2nd-tier resellers,Retailers/retail chain stores,12%,9%,79%,67%,12%,67%,12%,21%,SAMSUNG010605BJ-kickoff2,22,ORGANIZATION AND OWNERSHIP,1.Background information,LocationRegistered capitalManagementteamEquitystructure,Starting yearNumber of employeesEra analysis,4.Value chain strategy,5.Organization and ownership,6.Financial performance,Focus onMarketing,advertising and promotionDistribution(channel and sales force),Organization structureOwnership structure,Sales Profit,2.Strategy,3.Product/market,MissionVisionCorporate strategyMarket position,Key product offeringsKey customersValue propositionGeographic focusPricing,SAMSUNG010605BJ-kickoff2,23,With a large product portfolio covering information and communication and home appliances etc.Siemenss organization is product focused with clear lines of P&L responsibilitiesSiemens has over 50 JVs and WOFEs in China with large commitments in telecommunication.Siemens Shanghai is devoted to mobile communication including mobile handsetsSiemenss joint ventures are managed under their own global BU,and Siemens China,the holding company,coordinates and provides shared services for the global BU activities in ChinaSiemens is starting to centralize sales and marketing to better handle solution sales,and the goal is to consolidate all marketing and sales functions under Siemens directly,KEY MESSAGES-ORGANIZATION AND OWNERSHIP,SAMSUNG010605BJ-kickoff2,24,WITH A LARGE PRODUCT PORTFOLIO,SIEMENS TENDS TO BE MORE PRODUCT FOCUSED WITH CLEAR LINES OF P&L RESPONSIBILITY,Organization structure,P&L responsibility,ICM manager for information and communication mobile ICN manager for information and communication network,Driving factorsIn order to meet the trend of techno