麦肯锡三星电子38_Motorola assessment v4

010417SHELM038JL_RAJv5i,CONFIDENTIAL,Thisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinseyitisnotacompleterecordofthediscussion.,August20,2001,MobileHandsetCompetitorProfile:Motorola,SAMSUNGELECTRONICSCHINA(SECChina),010417SHELM038JL_RAJv5i,2,OVERVIEWOFCOMPETITORANALYSISFRAMEWORK,1.Backgroundinformation,LocationRegisteredcapitalManagementteamEquitystructure,StartingyearNumberofemployeesEraanalysis,4.Valuechainstrategy,5.Organizationandownership,6.Financialperformance,FocusonMarketing,advertisingandpromotionDistribution(channelandsalesforce),OrganizationstructureOwnershipstructure,SalesProfit,2.Strategy,3.Product/market,MissionVisionCorporatestrategyMarketposition,KeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing,010417SHELM038JL_RAJv5i,3,BACKGROUNDINFORMATION,1.Backgroundinformation,LocationRegisteredcapitalManagementteamEquitystructure,StartingyearNumberofemployeesEraanalysis,4.Valuechainstrategy,5.Organizationandownership,6.Financialperformance,FocusonMarketing,advertisingandpromotionDistribution(channelandsalesforce),OrganizationstructureOwnershipstructure,SalesProfit,2.Strategy,3.Product/market,MissionVisionCorporatestrategyMarketposition,KeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing,010417SHELM038JL_RAJv5i,4,MOTOROLAHASHIGHASPIRATIONSFORITSCHINABUSINESS,TargetingsalesofUS$10billioninChinaby2002/2003FocusingproductionoperationsinChina,asproductionthereisabout15-20%cheaperthaninSingaporeand30-40%cheaperthaninEurope,Source:Analystreports,010417SHELM038JL_RAJv5i,5,MOTOROLASCHINABUSINESSSPANSSIXPRODUCTCATEGORIES,MotorolaChina,Mobilehandsets,Networkequipment,Pagers,Two-wayradios,Semi-conductors,Autoelectronicsandaccessories,Mobilenetworkequipment,Fixedlinenetworkequipment,Wirelesscommunications,Source:Motorolawebsite,Setuprepresentativeofficein1987Operationsinclude:1holdingcompany1WOFE8jointventures26subsidiaries12,000employeesUS$3.4billiontotalinvestmenttodate,010417SHELM038JL_RAJv5i,6,STRATEGY,1.Backgroundinformation,LocationRegisteredcapitalManagementteamEquitystructure,StartingyearNumberofemployeesEraanalysis,4.Valuechainstrategy,5.Organizationandownership,6.Financialperformance,FocusonMarketing,advertisingandpromotionDistribution(channelandsalesforce),OrganizationstructureOwnershipstructure,SalesProfit,2.Strategy,3.Product/market,MissionVisionCorporatestrategyMarketposition,KeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing,010417SHELM038JL_RAJv5i,7,MOTOROLASHANDSETSTRATEGYCOMBINESANATTRACTIVEPRODUCTRANGEWITHSUPERBVALUECHAINMANAGEMENT,DevelopedawideproductrangewhichcoversallkeypricepointsandoffersawiderangeoffunctionalityInvestedheavilyinproductlocalizationthroughChina-basedRsharedexclusivitybyproductKeptstrongretailsupport(doubledmarketingandsalesstaffsince97),Source:Interviews,McKinseyanalysis,010417SHELM038JL_RAJv5i,18,MOTOROLASKEYSTRENGTHSLIESINADVANCEDTECHNOLOGY,COMMITTEDPROMOTION,WIDEDISTRIBUTIONNETWORKSANDQUALITYAFTER-SALESSERVICES,Source:IDC2000,Keystrengths,Recentdevelopment,010417SHELM038JL_RAJv5i,19,MOTOROLADISTRIBUTESEXCLUSIVELYTHROUGHNINEFIRST-TIERRESELLERS,Source:IDC,RationalesMotorolaemploysPTAC,CellStart,Heguang,Eastcom,SunYin,Sinya,NorthTelecom,Hengxin,andForteasits9first-tierresellers.HistoricallyassignedoneMotorolamodeltoeachresellerEliminatespricecompetitionEnablesMotorolatoeffectivelymanageproductionvolumewithordertrackingRecentlyshiftstrategytohave2authorizedresellersforeverymodelinordertoimprovepromotionsandaccesstocustomersMotorolaisthebestvendoronchannelsupportaspromotionandadvertisementisprovided.Italsohelpsresellerstosetupservicecenterstohandlerepairandmaintenanceservices.AstheleadingvendorinChina,Motorolaschannelstrategyisofcontinuedimportance,MotorolaChannelStructure,Motorolaswell-builtdistributionnetworkplaysanimportantroleinitssuccessinChinaToomanytiersofresellersbecomeadisadvantagetoMotorolaschannelefficiency,Vendor,1st-tierresellers,2nd-tierresellers,Retailers/retailchainstores,Consumers,100%,21%,64%,3%,85%,12%,76%,010417SHELM038JL_RAJv5i,20,ORGANIZATIONANDOWNERSHIP,1.Backgroundinformation,LocationRegisteredcapitalManagementteamEquitystructure,StartingyearNumberofemployeesEraanalysis,4.Valuechainstrategy,5.Organizationandownership,6.Financialperformance,FocusonMarketing,advertisingandpromotionDistribution(channelandsalesforce),OrganizationstructureOwnershipstructure,SalesProfit,2.Strategy,3.Product/market,MissionVisionCorporatestrategyMarketposition,KeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing,010417SHELM038JL_RAJv5i,21,Motorolahas8JVs,1WOFEand1holdingcompanyinChina,amongwhichHangzhouEastcomCellularPhone(8millionunitsproductioncapacity)andMotorolaTianjin(MCEL,18millionunitscapacity)aredevotedtomobilehandsetsMotorolaismainlyorganizedalongproductlines,however,itsWOFEinTianjinhasbeenreorganizedtobemorecustomerfocused.MotorolaTianjinisdividedinto4sectors,i.e.PersonalCommunicationforconsumers,Commercial,GovernmentandIndustrialSolutionsforcorporateandgovernment,GlobalTelecommunicationSolutionsfortelecomoperators,andIntegratedElectronicSystemsforassemblers,KEYMESSAGES-ORGANIZATIONANDOWNERSHIP,010417SHELM038JL_RAJv5i,22,MOTOROLAHAS8JVsAND1WOFEINCHINA,AMONGWHICH1JVANDTHEWOFEAREDEVOTEDTOMOBILEHANDSETS,Motorola(China)investment,Leshan-Phoenixsemi-conductor,ShanghaiMotorolapagingproducts,HangzhouMotorolaMobilecommuni-cation,HangzhouEastcomcellularphone,Shanghaizhongmeiautomotiveelectronics,HuaminSmartcard,BeijingHuaminsmartcardsystemmanufacturing,MotorolaTianjin(MCEL),Establishedyear,Productoffering,1995,1995,2000,2000,1999,1998,1992,Semiconductor,Pager,GSMandCDMAnetwork,Mobilehandsets,Automotiveelectronics,Smartcardsystemandproduct,MobilehandsetsMobileinfrastructureSemi-conductorsTwo-wayradiosBasestationsHandsetaccessories,WithAnsenmeiandLeshanRadio,WithShanghaiRadio(SRCEM),WithEastcomandPutian,42%WithEastcomandPutian,WithShanghaiGE,WithSino-overseasconstructioninformation,100%,Source:Motorolapressrelease,010417SHELM038JL_RAJv5i,23,MOTOROLAISORGANIZEDALONGPRODUCTLINES,HOWEVERITSWOFEINTIANJINHASBEENREGORGANIZEDTOBEMORECUSTOMERFOCUSED,R&DHangZhou/Shanghai,Manu-facturing,Sales,Services,Manu-facturing,Sales,Services,Personalcommunication,Commercial,governmentandindustrialsolutions,GlobalTele-communicationsolutions,IntegratedElectronicsSystems,Asiatele-communicationproductmanufacturingsite(planned),R&D,Manu-facturing,R&D,Manu-facturing,Sales,R&D,Manu-facturing,Sales,R&D,Manu-facturing,Mobilehandset*pager*In2001,18millionunitscapacity,GSM,CDMAMobilenetworkandhandsets,GSM,CDMAMobilenetwork,Mobilehandsets*In2001,5millionunitsproduction8millionunitscapacity,Twowayradio,GSM,CDMAsystems,e.g.,basestation,Batteries,HangzhouMotorolamobilecommunication,HangzhouEastcomcellularphone,MotorolaTianjin(MCEL),Source:Motorolapressrelease,010417SHELM038JL_RAJv5i,24,FINANCIALPERFORMANCE,1.Backgroundinformation,LocationRegisteredcapitalManagementteamEquitystructure,StartingyearNumberofemployeesEraanalysis,4.Valuechainstrategy,5.Organizationandownership,6.Financialperformance,FocusonMarketing,advertisingandpromotionDistributio