003麦肯锡—NOKIA制胜美国市场报告.ppt

CONFIDENTIAL Thisreportissolelyfortheuseofclientpersonnel Nopartofitmaybecirculated quoted orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinseyitisnotacompleterecordofthediscussion Discussiondocument December2000 NokiaCaseStudy WinningintheU S NJ 262408 756 001031NdkocHR1 1 FINGERPRINT NOKIA Rationale Focusedonhighgrowthcategories e g mobilephones digital AnticipatedshifttodigitaltechnologyintheU S beforecompetitorsanddirectedresourcestooptimizeopportunity tailorsproductstotargetcustomers e g fashioncoversforyoungersegment Somedifficultytoattractingtop tierlocalseniormanagementduetoglassceiling e g allseniorleadershipinFinnish0 FinnishmanagersusedtomanageU S operations Succeedsinattractingtopengineersbecauseofattractiveproducts Localmanagershavelimitedautonomyandaccountabilityexistsattheunitlevel butheadofficeretainsfinalinput Difficultytranslating TheNokiaWay toU S Theculturedoesn thavethesamerichnessorvalueasitdoesinEurope Devotessufficientresourcestolocalorganizationtowininmarket e g providedresourcesforU S towininmobilephonesegment Outsourcesnon coretechnologies e g microprocessorsfromIntel componentsformMotorola andusesstandardcomponentstosaveonRleveragespartnershipsformoreefficientR D e g JVwithCisco Geoworks HP N A Createsbroaddistributionreachthroughnumerous innovativerelationshipswithretailersanddistributors e g Sears AT Twirelessservices Tandy Developsandlaunchesinnovativemarketingcampaigns e g firsttotargetconsumersratherthanprofessionals Successfullyalliesandacquirestogaincapabilities e g jointventurewithTandyfordistribution acquisitionofMobiratoenterpromisingmobilephonearea HighLow Encouragessharingofbestpracticesbuthasnotbeenverysuccessfulatdoingsotodate NJ 262408 756 001031NdkocHR1 2 NOKIA KeyfactsLargest1 3yearrevenuesgrowthofcompetitorsLargestmobilephonemanufacturerandsecondlargestproviderworldwide behindEricsson ProductsMobilephonesGSM DSCnetworks CompetitorsEricssonMotorola Timeline 1865 1990s Developedintoconglomerate flooring TV footwear etc untilrefocusingonhighgrowthmobilephonesegmentinlate1980sand1990s Divestsnon corebusinesses 1995 1999 Americas ROW EUR Revenues Billions Stockappreciation 1998 99 Nokia S P S Pcellandwirelessindex CAGR CapabilitiesFirsttousemassmarketersasdistributors e g sellingmobilephonesinRadioShack Usesalliancesfordistributionchannels e g AT TWirelessServices Sears Adoptsconsumerratherthanprofessionalfocusinmarketing unlikecompetitorsUsesalliancesinR Dtogrowdevelopmentcapabilities HP Cisco Geoworks OrganizationAutonomyprovidedtoseniorleadershipinlocalsubsidiariesTopmanagementisallFinnish obstacletohiringtopU S talentStrongemphasisoncorporatevaluesandculturewith TheNokiaWay teamwork innovation production difficulttoimplementinU S Excellentopportunitiesforadvancement fastcareertracks earlyresponsibility rotationprogramsHierarchyandbureaucracyreducedYoung innovative non rigidleadershipstyleRatedinFortunetop100firmstoworkforintheU S ProductGrewmobilephonesegmentfrom16 oftotalsalesin1991to66 in1999Alliedtogainproductexpertise e g Motorolatostandardizetechnology CiscoandHPtodevelopnetworkproducts Technologydesigninnovator firsttomarketwithmanyproductinnovationsTailoredproducttotargetkeycustomers e g phoneswithfashionable changeablecoverstoattractyoungsegment Background Leversforsuccess 19 8 6 2 Foundedaspapermill 58 CAGR EntersU S throughTandyJV GrowsmobilebusinessinU S 1988 1983 AcquiresMobira 1981 Operatesasaconglomerate 1960s NJ 262408 756 001031NdkocHR1 3 CONTENTS CompanyoverviewU S marketentrystrategyProductsCapabilitiesOrganization NJ 262408 756 001031NdkocHR1 4 NOKIACOMPANYBACKGROUND Founded1865 inFinland asapulpandpapermillEnteredU S in1983 whencellularservicewasjustlaunchingintheU S Globalemployees55 260 inU S 10 500CEO JormaOllila Finnish MostseniormanagersforU S Kari PelekaWilska PresidentofAmericasRichGeruson HeadofUSASalesandMarketingforNokiaMobilePhonesKeydivisions MobilePhones NokiaNetworks CommunicationsProductsMarketcap 193 3billion asofOctober27 2000 Keyindustryoffocus Mobilephones 65 of1999totalsales Number1mobilephonemakergloballyNumber2GSM DCSmobilephonenetworksprovidergloballyCompetitors Motorola Ericsson NJ 262408 756 001031NdkocHR1 5 COMPANYEVOLUTION Source InternationalDirectoryofCompanyHistories 1800sFounded1865inFinlandaspulpandpapermanufacturerConstructsownpowerplantsasindustrybecomesenergyintensive 1960sMergeswithFinnishRubberWorksandFinnishCableWorksin1966aspartofdiversificationplanBeginstodesignandmanufacturedataprocessing industrialautomation andcommunicationssystemsNokiaconglomerateconsistsofintegratedcableoperations electronics tires andrubberfootwearMakesfirstpublicshareofferingin1966 1970sOilcrisisin1973reducesrelianceonexports timberproductsandmachinery toSovietUnion 12 ofsales KariKairamo appointedCEOin1975 realizesthatforNokiatogrowithastoexpandabroad expandsNokiainScandinaviaandEuropeSellsswitchingsystemsunderlicensefromallocated French Helpsdesignworld sfirstinternationalcellularsysteminthe1970s 1980sAcquiresnearly20electronicscompaniesoverthedecadeandcompleteskeymergersAcquiresMobira Finnishmobilephonecompany in1981 togainfootholdingrowingmobilephonesegmentMergesSalora largestTVmanufacturerinScandinavia andLuxor Swedish stateownedelectronicsandcomputerfirm in1984Throughthe 80s manufacturesOEMequipmentforHitachi Ericsson NorthernTelecom Granada IBMEntersU S in1983throughJVwithTandyCorporationtosellNokiaphonesunderTandynameLaunchesfirstproduct mobilephones marketedinternationallyunderNokiabrandnamein1986 Nokiahasevolvedsubstantiallysinceitsfoundation movingfromaFinnishpapermill toadiversifiedFinnishconglomeratetoaglobalwirelessleader 1990sAggressivelygrowsmobilephonebusinessintheU S BuysTandy sshareofJVin1993tofullyownfactoriesinU S andSouthKoreaSignssignificantcontractstoincreasedistributionchannels e g AT TWirelessServices Conglomeratephase ExpandsinScandinaviaandEurope AcquiresandallysintomobilephonesandU S AllystostrengthenU S position NJ 262408 756 001031NdkocHR1 6 Time Horizon1Drivecoregrowth Horizon2Buildmomentumofemerginggrowthengines Horizon3Securefutureoptions Profit Wearenowbenefitingfromthevisionarytechnologicalsolutionswemadeyearsago thelong termsuccessofourcompanyrequiresconstantagilityinpositioningourselvesinthisdynamicindustry JormaOllila CEO Toidentifywhatisrequiredinthelongtermyouneedthecompetenciesandtheproducts gettingtherightfocusisthetoughpart JormaOllila CEO TheCEOhastounderstandthedynamicsofeachbusinessthecompanyisin inordertounderstandwherethefuturelies JormaOllila CEO Source Annualreports pressclippings LEADERSHIPCOMMITMENTACROSSTHREEHORIZONS WhenplanningNokia sfuturedevelopment CEOJormaOlliladistinguishesclearlybetweenthreewaves ThefirstwaveemphasizesthecontinuousexploitationofNokia scorebusinesses ThesecondwaverequirestheidentificationofcapabilitiesandproductsthatwillhaveimpactonNokia ssuccessintheimmediatefuture Finally thethirdwavedeterminesthecompany sfuturedirectionthroughsettingaspirationsandplacingoptions NJ 262408 756 001031NdkocHR1 7 PLANNINGACROSSTHREETIMEHORIZONS Profit Horizon1 Horizon2 Horizon3 Drivecoregrowth Buildmomentumofemerginggrowthengines Securefutureoptions Products Boostmobilephonesalesthroughbrand buildingefforts Makeproductextensionssuchas Swatch likeneon coloredmobilephones Expandproductrangethroughnewfeaturesandcomplementaryaccessories suchasphonecoversordifferentbatterysizes CreateR Dalliancesforproductdevelopmentinwirelessdatatransmissionandterminaltechnology Increasesalesoffixedandcellularnetworktopublictelecomoperators Winprivatetelecomoperatorsasnewcustomers Launchfirstwirelessproducts e g Nokia9000Communicator aportablewithphone fax email Internetaccessallinone Markets FurtherpenetrateScandinavia partsofWesternEurope ImprovepositioninginAsia Pacific US otherEU countriesthroughstrongerdistributionnetwork Prepareforfullderegulationoftelecomindustryandentryintoremainingmarkets Time Horizon1Drivecoregrowth Horizon2Buildmomentumofemerginggrowthengines Horizon3Securefutureoptions Source McKinseyanalysis NJ 262408 756 001031NdkocHR1 8 SENIORMANAGEMENT Source AnnualReport Spent6monthsintheU S in1999 Spends50 ofhistimeinSiliconValley NJ 262408 756 001031NdkocHR1 9 AsofJanuary2000Source EpsicomBusinessIntelligence NOKIAORGANIZATIONALSTRUCTURE HeadofficefunctionsCFOInternationalTradePolicyTechnologyResearchCenterGeneralCounselHumanResourcesCommuni cationsInternationalTradeAffairs NokiaNetworks NokiaMobilePhones NokiaCommunicationsProducts NokiaMultimediaTerminals NokiaIndustrialElectronics NokiaVentures NokiaResearchCenter NokiaInternetCommunications NokiaVenturesFund InternalVenturingUnit NokiaWirelessBusinessCommunications NokiaWirelessSoftwareSolutions NokiaIPApplicationandConnectivityPlatform NJ 262408 756 001031NdkocHR1 10 Worldtelecomequipmentindex S P500 Nokia NOKIASTOCKPRICECOMPARISON Thousands Source Datastream Value 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Nokiaclearlyoutperformsthemarketanditscompetition NJ 262408 756 001031NdkocHR1 11 Asia Pacific Europe 1995 1996 1997 1998 1999 NOKIASALESBYREGION EuroMillions Nokia ssalesinNorthAmericahavegrowndramaticallyinthelate90 swithaCAGRof58percent whileEuropeancontributiontosaleshasdiminishedsteadilyshrinking NorthAmerica 6 191 6 613 8 849 13 326 19 772 CAGRPercent 34 37 26 58 Source Annualreports 100 NJ 262408 756 001031NdkocHR1 12 ROW Finland 676 1991100 EURO2 600 ROW 1999100 EURO19 772 Finland 395 Nokia ssalesinFinlandhavefallendramaticallyasapercentageoftotalsales Source Annualreports EuroMillions NOKIA SFINLANDSALESCOMPAREDTORESTOFWORLD NJ 262408 756 001031NdkocHR1 13 NOKIA SINDUSTRYFOCUSANDPRODUCTMIX EuroMillions Source Annualreports Salesbyproduct Consumerelectronics Cablesandmachinery Mobileproducts Telecommuni cations 1991100 EURO2 600 Basicindustries Networksolutions Mobileproducts 1999100 EURO19 772 Home multimedia andother Nokia sproductsMobileproducts fullrangeofdigitalandanalogcellularphones wide areapagers aswellasaccessoriesandcomponentsformobilephonesNetworksolutions telecommunicationsystemsandequipmentforbothfixedandmobilenetworks principalproductsincludedigitalexchanges transmissionsystems andcellularsystems whicharesoldtoPTT publicutilities newoperators andcableTVcompaniesHome multimediaandother includesPCandworkstationmonitors aswellasinteractivedigitalsatelliteandcableterminals In1998 Nokiabecametheworld slargestmanufacturerofmobilephones selling40 8millionhandsets andgrewsalesgrew51percentfrom1998to1999 Threeyearsagowedecidedtocreateatelecom orientedcompany Wehavebeenabletoimplementthechangesfasterthanweexpected JormaOllila FinancialTimes 09 07 1995 NJ 262408 756 001031NdkocHR1 14 SUBSIDIARYLOCATIONSANDRESEARCHCENTERS 6 Nokiacoversanexpansivegeography NJ 262408 756 001031NdkocHR1 15 CONTENTS CompanyoverviewU S marketentrystrategyProductsCapabilitiesOrganization NJ 262408 756 001031NdkocHR1 16 STORYLINE Atthebeginningofthe1980 sNokiawasstilladiversifiedcompany relyingpredominantlyonEurope particularlyScandinavia todrivesalesHowever thecompanyrealizedthatsignificantgrowthwouldbedependentonbuildingamajorpresenceintheU S market inhighreturnsegmentsTodosotheyacquiredMobira Finland in1981togainafootholdintherapidlyemergingmobilephonesector TheyrapidlygrewthisopportunityintheU S throughaseriesofOEMrelationships GTE Delco SouthwesternBell BellAtlantic andajointventurewithTandyCorporationin1983Nokialaunchedtheirownbrandmobilephonein1986andpursuedaggressivebrandingandalliancestrategies e g RooftopCommunications Compaq AT TWirelessServices tosolidifytheirpresence NJ 262408 756 001031NdkocHR1 17 Nokiawasthefirstplayertousemassmarketdistributionchannelsfortelecommunicationsequipment Source InternationalDirectoryforCompanyHistories AnnualReports pressclippings TIMELINEOFKEYEVENTSINNOKIA SU S BUSINESS NJ 262408 756 001031NdkocHR1 18 CONTENTS CompanyoverviewU S marketentrystrategyProductsCapabilitiesOrganization NJ 262408 756 001031NdkocHR1 19 Nokiamadebigbetsastowhichtechnologieswouldemerge redirectingresourcesandcompanyfocustoemphasizethesecategories PRODUCTSTRATEGY Thechoiceoffocusisextremelyimportant Weconstantlystrivetomakesurewearefocusedontargetedmarketsinwhichthegrowthrateismuchhigherthanthatofthetotalmarket Nokia saimistogrowsomewhatfasterthanthetargetedmarketsdo MattiAlahuta President MobilePhones NJ 262408 756 001031NdkocHR1 20 Nokia sacquisitionsintheU S wereprimarilytobroadenitsproductcapabilities PRODUCTACQUISITIONS Source SecuritiesDataCorporationandpressclippings NJ 262408 756 001031NdkocHR1 21 CONTENTS CompanyoverviewU S marketentrystrategyProductsCapabilitiesOrganization NJ 262408 756 001031NdkocHR1 22 Alliances partnershipsprovidealargeportionofNokiacapabilities NokiahasdevelopedastrongcapabilityplatformintheU S primarilydrivenbyalliancesandpartnerships CAPABILITYPLATFORM NJ 262408 756 001031NdkocHR1 23 BRANDDEVELOPMENT Startingin1994 Nokiaincreasedcorporatebrandawarenessthroughvigorousadvertisingcampaigns Source Annualreports pressreleases pressclippings companywebsite Nokia6100Seriesphone NJ 262408 756 001031NdkocHR1 24 Nokiakeptitsadvertisingconsumerfriendlyandeasytofollow incontrasttotheircompetitorswhotargetedprofessionals NOKIACOMMUNICATIONSTRATEGY SincetheearlyninetiesNokia svaluepropositiontotheconsumerhasbeensingle mindedon simplicity and ease ofusingmobilephonesThepropositionof simplicity isfurtherenhancedbythetoneofvoiceandvisualsusedinthecommunicationThepropositionhasbeencommunicatedthroughalltheircommunicationeffortsbothinmassmediaandatpoint of sale NJ 262408 756 001031NdkocHR1 25 Source Pressarticles annualreports ECCHCollectionCaseStudy Nokia Motorola Ericsson Percentageofsales R DEXPENDITURES1995 NokiaspendsrelativelylittleonRe g cellulardatatransmissionUseofcheapindustrystandardproductsasabaseratherthanmoreexpensivesystems EverythirdNokiaemployeeworksinR D R Dcentersexistin14countriesonfourcontinents NJ 262408 756 001031NdkocHR1 26 JOINTR DACTIVITIES Wedonotaimtodoeverythingbyourselves andwhenit snecessaryweformpartnershipswithotherpioneersoftechnology thismeansfocusingonwhatwearebestatandcomplementingitwiththeexpertiseofothers Partnercompany Products Start NokiahasbuiltextensiveR Dpartnerships Forexample atthebeginningof1994 NokiasignedanagreementwithHewlett PackardtocooperateinthedevelopmentofIntelligentNetworksystemsfortelecommunicationsoperators TheagreementcentersaroundtheintegrationanddevelopmentofkeyINarchitectureelements Source Pressclippings pressreleases Internethomepage NOTEXHAUSTIVE NJ 262408 756 001031NdkocHR1 27 President NokiaTelecommunications NetworkandAccessSystemsDivision Thiscooperationanswerstheneedforfasterbuildingofnewcompetencies fasterR Dcycles andtherighttimingofproductlaunches Source Nokiapressrelease pressarticles NOKIA CISCOR DALLIANCE EXAMPLE In1995 NokiaandCiscoSystems U S establishedastrategicalliancetodevelopATM basednetworkproductstoprovidetotaltelecomservicesolutionstocompanies NJ 262408 756 001031NdkocHR1 28 Source Pressclippings NokiausedstrategicalliancestogainanumberofproductandmarketingcapabilitiesintheU S Nokiawasparticularlyactivein2000 STRATEGICALLIANCES NJ 262408 756 001031NdkocHR1 29 Source Pressclippings STRATEGICALLIANCES CONTINUED NJ 262408 756 001031NdkocHR1 30 CONTENTS CompanyoverviewU S marketentrystrategyProductsCapabilitiesOrganization NJ 262408 756 001031NdkocHR1 31 ORGANIZATIONALLEVERS Nokiahasmadeseveralmovesinthepastyearstobetteralignitsorganization NJ 262408 756 001031NdkocHR1 32 Source Annualreports Internethomepage Managingtheflow Extensiverecruiting Selectsetofnewhires Peoplearethemostcrucialresourceinmanaginggrowth youhavetoconstantlyrecruitandintegratethebestpeopleintoyourculture Teamwork isoneofthebasicelementsofNokia westresscommunicationandsocialskills inadditiontoprofessionalexcellence Recruitingeventsatinternationaluniversitiesandbusinessschools CareeropportunityadsininternationalandregionalnewspapersandontheInternet CreationofearlytiesthroughinternationalstudentexchangeprogramofferingtraineeplacementsinallNokiabusinessgroupsworldwide Universitydegreepreferablyinscienceorbusinessstudies Academicexcellence Outgoing confidentpersonalityabletosolveproblemsindependently whileatthesametimeworkinateam Mucheffortisinvestedinimprovinginductionprograms butwe vegottofindawaytoavoidbureaucracyandmaintainentrepreneurialspirit QuicklyindoctrinatenewpersonnelintheNokiawayofdoingbusiness Instillaspiritofcontinuouslearninginallnewemployees Nokiaviewspeopleasitsmostimportantasset TALENTMANAGEMENTTECHNIQUES NJ 262408 756 001031NdkocHR1 33 Wehaveachievedthebestresultsinunitswheretherehasbeenaclearemphasisoncontinuouslearning improvingskillsandquality ambitiousgoals andalsorespectfortheindividual ensuringthatthesevaluestakerootandflourishthroughouttheGroupisacentralthemepermeatingallofNokia shumanresourcedevelopmentprograms JormaOllila CEO NokiaWay hasbeendifficulttoimplementintheU S Theculturedoesn thavethesamerichnessorvalueasitdoesinEurope Customersatisfaction Continuouslearning Respectfortheindividual Achievement Source Internethomepage annualreports NOKIAVALUES Nokia sgrowthtargetsarewellbalancedwithitslongtermvalues NJ 262408 756 001031NdkocHR1 34 Weworkhard 10hours andifnecessary 12hoursaday wehavetomakesurethatwedon tbecome lazy JormaOllila CEO Nokiaisanextremelytoughenvironment peopleworklikehell there sanongoingjokethatNokiaprovidesfreeeyedrops becauseitsemployees eyesarealwaysredduetolackofsleep It saswimorsinkmentality butifyousurviveyoucanbepresidentofasubsidiaryafter3years Yes Nokiaisperformance driven butit salsoafunplacetowork forexample ithasroomswithpooltableswheretheteamcangoandrelaxforawhile Underperformersarenotfired theystaywithNokia butarereassignedtolessdemandingtasks atleastinFinland maybethat sdifferentinforeignsubsidiaries Oneimportantbrickinbuildingasuccessfulcompanyisthattheworkplaceisfunandthateverybodyknowswhytheyareworkingthere PetteriWaldea NokiaCable Performance drivenculture withcommunityfeel Source InterviewswithMcKinseyconsultants pressclippings Nokia scultureisstronglyorientedtowardspe