三星战略TO西门子.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,location registered capital management team equity structure,starting year number of employees era analysis,4. value chain strategy,5. organization and ownership,6. financial performance,focus on marketing, advertising and promotion distribution (channel and sales force),organization structure ownership structure,sales profit,2. strategy,3. product/market,mission vision corporate strategy market position,key product offerings key customers value proposition geographic focus pricing,samsung010605bj-kickoff2,2,key issues to probe - siemens,strategy,product/market,value chain strategy,organization & ownership,financial performance,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,location registered capital management team equity structure,starting year number of employees era analysis,4. value chain strategy,5. organization and ownership,6. financial performance,focus on marketing, advertising and promotion distribution (channel and sales force),organization structure ownership structure,sales profit,2. strategy,3. product/market,mission vision corporate strategy market position,key product offerings key customers value proposition geographic focus pricing,samsung010605bj-kickoff2,4,china has developed into a major pillar for siemens business in asia pacific,based at germany 50+ 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 1985 information and communication business started 1991,30,000 staff in information and communication mobile globally 25,000 employees for all business sectors in china,1982 siemens beijing office opened 1985 entered chinas telecommunication market 1990 established jv beijing international switching system 1994 siemens china founded in beijing 1998 formed business segment - information and communication 2000 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 market broad product portfolio representing all business sectors of siemens worldwide,source: siemens press release,samsung010605bj-kickoff2,5,strategy,1. background information,location registered capital management team equity structure,starting year number of employees era analysis,4. value chain strategy,5. organization and ownership,6. financial performance,focus on marketing, advertising and promotion distribution (channel and sales force),organization structure ownership structure,sales profit,2. strategy,3. product /market,mission vision corporate strategy market position,key product offerings key customers value proposition geographic focus pricing,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 2000 intensive 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,vision to 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 year percent,source: gfk, idc, mckinsey analysis,others,siemens,ericsson,motorola,1999,2001,2000,samsung,nokia,breakdown of units sold by brand each year percent,samsung010605bj-kickoff2,9,product/market,1. background information,location registered capital management team equity structure,starting year number of employees era analysis,4. value chain strategy,5. organization and ownership,6. financial performance,focus on marketing, advertising and promotion distribution (channel and sales force),organization structure ownership structure,sales profit,2. strategy,3. product /market,mission vision corporate strategy market position,key product offerings key customers value proposition geographic focus pricing,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 pricing siemens 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 2200 siemens 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 network wireless home network & office network mobile handset c2588 (small, light smart) s2588 (brain truster) 3508 (small, light, sexy) 3518i (tough enough) 3568i (smart thinking),broadband network ip network fixed-line network transmission network office network cable network,take td-scdma mobile handsets to serial production level by 2003 offer 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“, pursuing ip 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 - nokia white - motorola blue - ericsson brown - siemens green - 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 point percent,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, 2001 percent,market share by geographic area percent,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,location registered capital management team equity structure,starting year number of employees era analysis,4. value chain strategy,5. organization and ownership,6. financial performance,focus on marketing, advertising and promotion distribution (channel and sales force),organization structure ownership structure,sales profit,2. strategy,3. product/market,mission vision corporate strategy market position,key product offerings key customers value proposition geographic focus pricing,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 campaign siemens 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 china no product localization production capacity in shanghai pudong (150,000) 60% of products for chinese market produced in hong kong brightpoint handling over 90% of distribution market share less than 5%,product production distribution marketing,high commitment to td-scdma tests across china in 2001 asian offensive campaign with us 1.5 billion investment in r&d and marketing until 2003 production capacity in shanghai has been raised to 14 million units from 10 million units in 2000 uses different distributor (ptac), but still only one nationwide market 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,rationales siemens 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 resellers devote 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,location registered capital management team equity structure,starting year number of employees era analysis,4. value chain strategy,5. organization and ownership,6. financial performance,focus on marketing, advertising and promotion distribution (channel and sales force),organization structure ownership structure,sales profit,2. strategy,3. product /market,mission vision corporate strategy market position,key product offerings key customers value proposition geographic focus pricing,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 responsibilities siemens has over 50 jvs and wofes in china with large commitments in telecommunication. siemens shanghai is devoted to mobile communication including mobile handsets siemenss 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 china siemens 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 factors in order to meet the trend of technological merging in information and communication field, the new siemens business group - information and communication mobile (icm) started its operation in april 1, 2000. icm handles the entire mobile telephone business, with regard to both communications terminals (mobile and wired phones, mobile organizers and digital products) and mobile phone networks (products and services for mobile communication and intelligent networks).,source: siemens press release, mckinsey analysis,samsung010605bj-kickoff2,25,siemens has over 50 jvs or wofes in china, among which siemens shanghai is devoted to mobile handsets,siemens china,beijing international switching systems bisc,siemens transmission systems guangzhou (stsg),xin de telecom international ventures (tiv),siemens shanghai mobile communicating (ssmc),shanghai siemens business communication system (sbcs),main drivers,to be close to customers to be in line with government policies to become chinese company for chinese people,40%,with guangzhou nanfang photoelectrical telecommunication,beijing wire communication. beijing telephone authorities beijing comprehensive investment,shanghai aijian, shanghai xinguang,with shanghai video and audio electronics, shanghai post and telecommunication,51%,establish year,product offering,1990,ewsd switching,1993-1994,transmission systems (pdh, sdh, dwdm),1994,finance leasing and consulting,hicom 300 switching system,gsm mobile networks and mobile handsets,mpts first research institute,1993,1993,not exhaustive,source: siemens press release,samsung010605bj-kickoff2,26,siemens has made large commitments in telecommunication in china,jv company,year of contract,planned investment (mdm),siemens share (%),chinese partner (share),business scope,beijing international switching systems co., ltd. siemens fibre optic cables ltd chengdu siemens shanghai mobile communication ltd. guangzhou nanfang transmission systems ltd. siemens telecom power supply ltd. shanghai xin de telecom international ventures co. ltd. siemens business communication systems ltd. shanghai siemens shanghai communication terminals ltd. siemens optical fiber cables ltd. chengdu,90 98 93 93 94 93 95 94,90 54.5 50 15 35 45,40 50 51 60 50,beijing wire communication plant 25 beijing telephone authorities 25 beijing comprehensive investment co. 10 chengdu fibre optic cable factory (cdc) the town of shanghai; the ministry for post and telecommunications guangzhou nanfang ph