麦肯锡标杆企业研究.ppt

SEC China010821BJ-Toshiba,CONFIDENTIAL,Brown Goods and PC Competitor Analysis:Toshiba,SAMSUNG ELECTRONICS CHINA(SEC China),August 20,2001,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.,SEC China010821BJ-Toshiba,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 strategy,Key product offeringsMarket position,SEC China010821BJ-Toshiba,2,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 strategy,Key product offeringsMarket position,SEC China010821BJ-Toshiba,3,Source:Toshiba website,Lit search,BACKGROUND INFORMATION TOSHIBA,Established:,1875 by Hisashige Tanaka,President&CEO:,Tadashi Okamura,Total Assets:,US$51,578 million,Shareholders Equity:US$10,054 million,Number of employees:190,000 worldwide,(As of September 30,2000),Domestic Plants,Branches OfficesAnd Other Facilities:,Production facilities:25Branch offices:35Sales offices:23,Overseas Plants,Branches Officesand Other Facilities:,Offices:10Manufacturing companies:42Subsidiaries&affiliates:72,SEC China010821BJ-Toshiba,4,Source:Company website,Lit search,BACKGROUND INFORMATION DALIAN TOSHIBA TELEVISION,LTD,Location:,Dalian,Liaoning Province,Starting year:,1996,Registered Capital:,US$30 million,Unit Sold:color TV 1 million sets,50%export(Year 2000),Joint Venture Partners,Type,Foreign Juristic Persons Shares,Foreign Juristic Persons Shares,Toshiba,Toshiba(China)Co.,Dalian Daxian(Group)Co.,Ltd.,Number of employees:2,000,Products:21 34 color TV(CRT,Projection,Flat),Domestic Juristic Persons Shares,SEC China010821BJ-Toshiba,5,Source:Company Report,Lit search,TOSHIBAS CORPORATE MANAGEMENT TEAM,President&CEOTadashi Okamura,Corporate project,Corporate staff,Corporate support services,iValue Creation Company CEO:Tsutomu Kawada,e-Solutions Company CEO:Hiroo Okuhara,Social Infrastructure Systems Company CEO:Tsuyoshi Kimura,Digital Media Network Company CEO:Atsutoshi Nishida,Mobile Communications Company CEO:Tetsuya Mizoguchi,Power Systems&Services Company CEO:Toshiyuki Oshima,Semiconductor Company CEO:Takeshi Nakagawa,Display Devices&Components Company CEO:Eisaburo Hamano,Medical Systems Company CEO:Masamichi Katsurada,Home Appliances Company CEO:Makoto Nakagawa,SEC China010821BJ-Toshiba,6,Source:Company website,Literature Search,HISTORY OF TOSHIBA,SEC China010821BJ-Toshiba,7,Source:Literature Search;McKinsey Analysis,TOSHIBAS DEVELOPMENT WENT THROUGH THREE STAGES,Organization structureCorporate strategyProduct Development&Technology,1875-1939,Two Japanese electrical equipment manufacturers merged in 1939 to create Toshiba.Technological innovation accounted for the companies successes.One of the founders was the so-called Edison of Japan.Main products included transformers,electric motors,light bulbs,radio receivers,and cathode-ray tubes.,1978-PRESENT,1939-1978,The company grew rapidly and became a market leader in the electrical and electronic industry.However,the organization became more bureaucratic.The company continued to be innovative in the early years,producing many firsts in the industry.However,It lost its innovator image in the 70s.Numerous leading products in the electrical and electronics areas.Examples includes Japans first vacuum cleaner,first fluorescent lamp,first radar,etc.,Toshiba shifted direction by investing heavily in IT segment.The organization became increasingly global,employing 190,000 employees world-wide with annual sales over 5 trillion.IT focus,diversification,innovation and globalization are four key elements of Toshibas corporate strategy.Toshiba is intensively focusing on IT-related business(i.e.telecom and internet),meanwhile,leveraging its legacy businesses to generate stable income,Business Building,Becoming Industry Leader,Meeting worldwide competition,SEC China010821BJ-Toshiba,8,Source:Literature Search;McKinsey Analysis,DEVELOPMENT OF DALIAN TOSHIBAS TV BUSINESS IN CHINA,Key initiativeKey results,1996-1997,Founded as a joint venture in 1996,construction was completed in 1997.Conducted accurate market forecast and implemented just in order inventory management.Inventory turn-over less than two days.Made profit the next year.,2001,1998-2000,Focused on high profit margin PJTV segment,and competed on technology,service and management rather than price.Strengthened customer serviceRevenue and profit grew 50%annually.Became the No.1 market share leader in PJTV segment.,Toshiba decided to relocate its digital TV production to Dalian and invested 300 million to expand capacity from one million units to 1.5 million unitsexported 800,000 units to Japan.,Business Building,Establishing Leadership in PJTV Market,Becoming Toshibas Key Global TV Production Base,SEC China010821BJ-Toshiba,9,TOSHIBA WILL FURTHER INVEST IN IT INDUSTRY IN CHINA,Background information,Source:Literature research,interview,Source:literature research,interview,SEC China010821BJ-Toshiba,10,TOSHIBA IS THE LEADING PLAYER IN NOTEBOOK MARKET BOTH IN CHINA AND GLOBALLY,Time,Key milestones,198519901993199419992000,Introduced the first notebook in the worldIntroduced STN notebookIntroduced color TFT notebookIntroduced Pentium-empowered notebookRanked number one in China notebook market for 4 yearsRanked number one in world wide notebook market for 7 years,Era analysis of Toshiba in Notebook,Source:literature research,interview,SEC China010821BJ-Toshiba,11,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 offerings,SEC China010821BJ-Toshiba,12,TOSHIBAS MISSION AND VISION,Corporate mission“We,the Toshiba Group companies,based on our total commitment to people and to the future,are determined to help create a higher quality of life for all people,and to do our part to help ensure that progress continues within the world community,Corporate vision“To grow with excellence as the leading-edge,internet-ready enterprise globally by accelerating innovation with agility,and to create a 21st century of success hand in hand with our customers,Source:Company website,Lit search.,SEC China010821BJ-Toshiba,13,THREE STRATEGIES PROPEL TOSHIBA TO BECOME A GLOBAL HI-TECH LEADER IN THE NEW MELLIMUM,Toshiba as a leading-edge,internet-ready global leader in hi-tech,Accelerate the speed of innovationManagement Innovation(MI2001)is a major initiative being promoted throughout Toshiba Group.It is aimed at advancing creative destruction and competitive superiority,Champion market-centric managementCustomer Relationship Management and Supply Chain Management systems will be deployed to cover company-wide operations.,Be internet-readyDigital Manufacturing,a new system,will be introduced throughout the Toshiba GroupAn IT infrastructure for collaborative engineering will be established,Source:Lit search,external interviews:Toshiba Annual Report,SEC China010821BJ-Toshiba,14,ASSESSMENT OF TOSHIBAS CURRENT STRATEGIC POSITION SWOT,Strengths,Broad and diversified product portfolioStrong presence in AsiaStrong R&D and manufacturing capabilities,Weaknesses,Less customer focusedWeak brand name in cutting-edge information technologiesUnbalanced global presence,Opportunities,Global digital convergenceEmerging technologies,i.e.,Internet,3GChina joining WTO opens doors to foreign companies,Threats,Bureaucratic management styleIts core semiconductor business is a cyclical commodity businessBehind the curve in key IT developments,SEC China010821BJ-Toshiba,15,THERE ARE TWO SUCCESSFUL MODELS IN THE CHINA CTV MARKET,DALIAN TOSHIBA FOLLOWS THE SONY MODEL,The Konka Model,Capital intensive,aggressive growth through economies of scale in manufacturing and in the sales forceFrom 1993 to 1998 Konka acquired TV manufacturers:North east Du Dan Jian,San Xi,An Suo,Chong Qing factories to bulk upGrew capacity by 2 million units from 1993 to 1998Through economics of scale and aggressive pricing Konka was able to grow market share from 3%to 11%from 1995 to 2000,The Sony Model,Zero in on the high end,high profit segment of CRT TV market with a strong brand able to command price premiumsNot in a strong presence in unit market share,but the top brand when consumers respond for the brand quality and reliabilityCorporate philosophy unwilling to sacrifice profits for larger market share(vast different from Chinese players)Future target focused on higher end,cutting edge technology TVs e.g.PJTV,Digital TV,LCD and PDP which have significantly higher profit margins.,Source:Lit search,McKinsey analysis,SEC China010821BJ-Toshiba,16,TOSHIBA SHIFTS ITS STRATEGIC FOCUS TO APPLICATION SOLUTION AND CUSTOMER SERVICE IN CHINA NOTEBOOK MARKET,Mission,To be the most responsible IT product application solution and service provider,Time,Strategic focus,1996199719981999,Product itselfChannel developmentApplicationCustomer service,2000,VIP certification focusing on core customersChannel development into 2nd tier geographiesApplication solution of mobile office concept,Toshiba notebook strategy*in China,Strategy evolvement,*Toshiba notebook strategy in China is co-developed by Digital China,Toshibas exclusive notebook chief-distributor in ChinaSource:literature research,interview,SEC China010821BJ-Toshiba,17,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 strategy,Key product offeringsMarket position,SEC China010821BJ-Toshiba,18,TOSHIBAS GLOBAL NET SALES BY BUSINESS SEGMENT,Source:Toshiba web site,Lit Search,Yea 2000(billion),Information&Communications&Industrial Systems 1,858,Power Systems 571,Electronic Devices&Components 1,477,Digital Media 1,518,Home Appliances 660,Others 473,SEC China010821BJ-Toshiba,19,DALIAN TOSHIBAs KEY TV PRODUCT OFFERINGS,Color TVs(inch,model no.),Projection TV Series:43 6161D9UXC50D9UXC43D9UXC50D8UXC43D8UXC,Source:Company website,Lit search,CRT TV Series:21 2929D2DC29D2XC25D2XC25E3DC321D2NC,Flat TV Series:21 3434D8UXC34D6DC29D8UXC29D6DC29D3XC25D6XC21AF6C,SEC China010821BJ-Toshiba,20,DALIAN TOSHIBAS MARKET POSITION IN CHINAS CONVENTIONAL CRT TV MARKET:NO.5 MARKET SHARE LEADER,Market share by sales,%,Source:GFK,McKinsey Analysis,External interviews:Konka,Sony,Toshiba,1999,2000,Others,100%,100%,Key trends,Rationale,Industry undergoes further consolidation Foreign players lose market share to local players,Top five players in the market Changhong,TCl,Konka,Hisense,Skyworth,controlled 41.6%of the market in 1999 grew to 43.7%in 2000 Local players increased market share from 65%in 1999 to 67%in 2000,1.9,2.0,Rowa,LG,Panda,Jinxing,Skyworth-RGB,Xoceco,Philips,Haier,Panasonic,Hisense,Toshiba,TCL,Changhong,Konka,Sony,SEC China010821BJ-Toshiba,21,DALIAN TOSHIBAS MARKET POSITION IN CHINAS PJTV MARKET:NO.1 MARKET SHARE LEADER,Source:GFK,internal interview,literature search,external interviews:Sony,Panasonic,Toshiba,Key trends,Rationale,Established MNCs,Toshiba,Sony will continue to dominate market Local players start establishing themselves by 2005,High-end producers with superior technology in pixel resolution and brightnessLocal players expected to acquire key PJTV technologies as of 2003As comparison,Changhong alone now controls 20%of large screen CRTV market,local players likely to gain similar share in PJTV market,Market share by salesPercent,Local(KonkaChanghong,etc),Other MNCs,Hitachi,Panasonic,Samsung,Sony,Toshiba,1999,2000,100%,100%,SEC China010821BJ-Toshiba,22,PJTV PLAYERS STRENGTHS AND WEAKNESSES,Company,Strengths/weaknesses,Toshiba,Strong brand nameAggressive sales and marketing,Sony,No.1 brand namePremium market with highest industry profits,Samsung,Strong quality in resolution and brightnessSolid position in the marketComparable technology with Japanese counterparts,Other MNCs:Panasonic,Philips,etc.,Possess the technology,but yet to establish themselves in market,Local companies:TCL,Konka,Hinsense,Haier,Changhong,Lack the key technologies for PJTV components tubes and screenLow-end brand have resulted in low sales volumeWill fill up the technology gap by about 2003,Source:Lit search,McKinsey analysis,SEC China010821BJ-Toshiba,23,TOSHIBA HAS A FULL-LINE PROUCT OFFERING IN NOTEBOOK,COVERING LOW-END TO PREMIUM SEGMENT,Source:Literature research,Key product offerings,Satellite Series 2800(13.3,14.1,15.0)Portege Series(7220CT,3480CT,3490CT)Tecra Series(8100H,8000J,8200)Satellite 1750(13.3)New satellite 2800(13.3,14.1,15.0)Satellite Pro 4600(13.3,14.1,15.0)New Satellite Pro 4600(14.1)Satellite 3000(13.3),Source:literature research,SEC China010821BJ-Toshiba,24,TOSHIBA IS STRONG IN EDUCATION,LARGE AND MEDIUM BUSINESS,BUT PARTICULARLY WEAK IN GOVERNMENT,Source:IDC,Small office,Home,100%=,Toshiba,Market average,73,484,Education,Government,Large business,Small business,Medium business,3.8,3.5,3.7,Sales by customer segmentsPercent of units shipment(000s),2000,SEC China010821BJ-Toshiba,25,TOSHIBA IS GENERALLY A MEDIUM TO HIGH-END PLAYER,PARTICULARLY STRONG IN USD 2.5-3.5K PRICE BRAND,Source:IDC,0.9,Low(0-2k),Medium(2-2.5k),High(2.5-3.5k),100%=,0.11,0.12,0.17,0.7,3.5,1.4,0.1,0.08,Premium(3.5K),2.2,Toshibas market share,0.1,Sales by customer segmentsPercent of units shipment(M),2000,Others,Dell,IBM,Founder,Legend,Acer,Toshiba,SEC China010821BJ-Toshiba,26,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 Pr