麦肯锡三星战略4（爱立信）

1、CONFIDENTIALMobile Handset Competitor Analysis: EricssonSAMSUNG ELECTRONICS CHINA (SEC China)August 20, 2001This 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 fr

2、om McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra

3、analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3. Product/market MissionVisionCorporate strategyMarket positionKey

4、product offeringsKey customersValue propositionGeographic focusPricing1KEY ISSUES TO PROBE - ERICSSONStrategyProduct/marketValue chainstrategyOrganization &ownershipFinancialperformanceWhat will be Ericssons strategic focus for the next 5 years?How will Ericsson secure its leading position in mobile

5、 infrastructure?What products will Ericsson be focusing on?Which market segment will Ericsson be interested in?Will Ericsson become a niche market player in mobile handset?How does Ericsson secure its leadership in technology?How does Ericsson improve its local production capability?How are Ericsson

6、s mobile handsets distributed?How does Ericsson organize its JVs and WOFEs?What functions does Ericsson China centralize?How good is Ericssons recent financial performance?How will Ericsson improve its performance in the future?2BACKGROUND INFORMATION1. Background informationLocationRegistered capit

7、alManagementteamEquitystructureStarting yearNumber of employeesEra analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3

8、. Product/market MissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing3ERICSSON IS A TECHNOLOGY LEADER IN MOBILE COMMUNICATION AND A MARKET LEADER IN MOBILE INFRASTRUCTUREImplicationLeader in mobile system technology including GSM, G

9、PRS and 3GEmphasize on mobile infrastructure and claim to be the only total solution provider for a full range of 2G and 3G standardsLocationBased at Sweden, with 24 offices in ChinaSince 1998, China has been Ericssons largest market in the worldInvestmentInvested more than USD 0.6 billion in ChinaB

10、usinessFour main business units: Mobile infrastructure, mobile handset, data network and circuit switching/packet switching multi-service networksStartingFirst office in China in 1985, first JV in China in 1992Employees 100,000 staff in 140 countriesOver 4,000 employees in China24 offices, 10 JVs an

11、d 4 WOFEsHistory1985: First Ericsson office in Beijing1987: First mobile network launched Qinhuang island1989: Set up offices in Guangzhou and Shanghai1992: Started JVs in China for mobile infrastructure and handset1994: Established Ericsson China Limited1995: China became Ericssons third largest ma

12、rket in the world1996: China became Ericssons s second largest market in the world1997: Established R&D center in Shanghai and Ericsson China institute1998: China became Ericssons largest market in the world, established Chongqing Ericsson technology1999: Established Ericsson consulting in Shanghai

13、and mobile multi-media lab in Zhonguancun2000: First to complete WCDMA test in ChinaBackground4SAMSUNG010605BJ-kickoff2STRATEGY1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4. Value chain strategy5. Organization and owners

14、hip6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3. Product /marketMissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic

15、 focusPricing5ERICSSON AIMS TO SECURE ITS LEADERSHIP POSITION IN NETWORK EQUIPMENT AND MAY BECOME A NICHE PLAYER IN MOBILE HANDSET ProductMaintain foothold in the low end mobile handset market through JV with Nanjing PandaDevelop 3G technology (WCDMA) for mobile communication by collaborating with M

16、II and DoCoMo, and apply leading technology to productsSecure its leadership position in network equipment rather than becoming the best-selling brand for mobile handsetsValue delivery systemR&D localization through collaboration with Chinese government and universitiesFurther expand local productio

17、n capacityCentralize marketing functions under Ericsson ChinaDistribute though 5 first-tier resellers including PTAC and PTICBuilds consumer website for Ericsson handset usersVisionTo innovate in mobile network and internet convergence and to lead in the era of mobile internetStrategySource: Ericsso

18、n press release, Dresdner Kleinwort, McKinsey analysis6SAMSUNG010605BJ-kickoff2ERICSSONs MARKET SHARE IS DECREASING OVER THE PAST FEW YEARSMonthly market share development (Percent of market in units sold)9899Jan 00Dec 00NokiaMotorolaSiemens EricssonSource: Retail AuditSource: IDC, McKinsey Analysis

19、7SAMSUNG010605BJ-kickoff2ERICSSON IS NOW NUMBER FOUR IN SALES VOLUME AND NUMBER FIVE IN REVENUE IN THE MOBILE HANDSET MARKETOthers SiemensEricssonMotorola199920012000Samsung NokiaBreakdown of sales by brand each yearPercentSource:GfK, IDC, McKinsey analysisOthers SiemensEricssonMotorola199920012000S

20、amsung NokiaBreakdown of units sold by brand each yearPercent8SAMSUNG010605BJ-kickoff2PRODUCT/MARKET1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4. Value chain strategy5. Organization and ownership 6. Financial performanc

21、eFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3. Product /marketMissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing9Ericsson cla

22、ims to be the only total solution provider in mobile communication who offers a full range of 2G and 3G standards. To secure its leadership position in mobile infrastructure, Ericsson may become a niche market player in mobile handsetsEricsson is a technology leader in mobile communication, which is

23、 reflected in its early releases of WAP, GPRS and bluetooth handsets and 3G networksEricsson gives up the high-end market in mobile handset to focus on low-end. It is relatively strong in 1st tier cities, and the North and East ChinaKEY MESSAGES - PRODUCT/MARKET10ERICSSON OFFERS TOTAL SOLUTIONS IN M

24、OBILE COMMUNICATION WITH MORE EMPHASIS ON MOBILE INFRASTRUCTUREProductsNow and futureEricsson mobile handsetEricsson product offeringsEricsson networkFirst WAP handset in the world (MC 218)R320sc WAP handset with Chinese interfaceA2638sc for young and successfulT29sc for mobile professionalR380sc fo

25、r business eliteT20sc, A2618sc for young and fashionableGSM and UMTS mobile infrastructure includingGSM, DCS1800, CDMA and WCDMAData network, e.g. AXD301 ATM switch AXI540 IP router, and IP phoneFirst GPRS handset and first bluetooth handset (T36)First to provide GSM 1800/1900 networks simultaneousl

26、yLeader in WAPLeader in GPRSTotal solutions in 3G based on WCDMA, CDMA 2000 and EDGESource: Ericsson press release11SAMSUNG010605BJ-kickoff2ERICSSON MAINTAINS FOOTHOLD IN THE LOW END MARKETHigh( RMB 3,500)Source:Sino-MR (Jan 2001 Feb 2001), CCIDBreakdown of unit sold by brand for each price pointPer

27、centHigh-mid(RMB 2,500-3,500)Mid(RMB2,000-2,500)Mid-Low(RMB1,500-2,000)Low (RMB1,500)Others SiemensEricssonMotorolaSamsung Nokia9%15%7%Units as % of total26%43%712SAMSUNG010605BJ-kickoff2Tier 1Tier 2Tier 3Tier 4NokiaMotorolaOthersERICSSON MATCHES SIEMENS IN THE 1st TIER CITY MARKETPercent market sha

28、re, 2000EricssonSiemens18%19%23%40%Tier size as % of total100%=Million units 6.77.08.514.8Source: McKinsey Analysis13SAMSUNG010605BJ-kickoff2ERICSSON IS RELATIVELY STRONG IN NORTH AND EASTMarket share by brands per geographic area, 2001PercentMarket share by geographic areaPercentEastSiemensEricsson

29、SamsungOthersNokiaMotorolaWestNorthNorth-eastSouth3013151311Central18Source: GfK, McKinsey Analysis14SAMSUNG010605BJ-kickoff2VALUE CHAIN STRATEGY1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4. Value chain strategy5. Organ

30、ization and ownership 6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3. Product/market MissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue pr

31、opositionGeographic focusPricing15For core products such as mobile or fixed line infrastructure, Ericsson has centralized the sales forces to provide “one face” to customers; for smaller products such as mobile handsets, Ericsson sells through JVs and distributorsEricsson uses PTAC, PTIC, Stellar, 5

32、08, and the United First as its 5 first-tier resellers. Insufficient support provided by resellers limit the ability of its dealer and channels to provide pre- and after-sales support to customers, which greatly afftect Ericssons position in the China marketKEY MESSAGES - VALUE CHAIN STRATEGY16ERICS

33、SON PRESENTS ONE FACE TO CUSTOMERS BY CENTRALIZING CORE PRODUCT SALES THROUGH ITS OWN SALES FORCER&DManufacturingMarketingSalesServiceNetworkMobile infra-structureShanghaiR&D centreNanjing EricssonBeijing Ericsson Telecom SystemEricsson ChinaEricsson ChinaDalian EricssonGuangdongTerminalMobilehandse

34、tBeijing Ericsson Mobile TelecomShanghai EricssonEricsson ChinaDistributors/dealersRationaleEricssons route to market is based on product characteristicsCore products are sold through the Ericsson sales force Smaller products are sold through JVs and distributorsElectronic compo- nentsWired-lineDist

35、ributors/dealersSource: Ericsson press release, interviews, McKinsey analysisChongqing Ericsson TechnologyNanjiing Ericsson Mobile TerminalHeilongjiangBeijing Ericsson17ERICSSON IS STRONG AT TECHNOLOGY AND MARKETING, BUT RELATIVELY WEAK AT MANUFACTURING AND SERVICE IN MOBILE HANDSETTechnology leader

36、 in GSM,GPRS and 3GFirst to release WAP, GPRS, bluetooth handsetsExpanded local manufacturing with 2JVs devoted to mobile handsetsCentralized purchasing and supplyR&DManufac-turing and supply chainMarketing and brandingSales and distributionServiceCentralized marketing functions to promote strong an

37、d consistent brand imageGood relationship with resellers such as PTAC and PTICStrengthsLack of big-hitting new modelsProduct development not meeting market demand in ChinaManufacturing with uncompetitive cost structureLocal production capacity insufficient compared with Motorola, Nokia and SiemensIn

38、sufficient support provided by the resellers limit the ability of its dealers and channels to provide pre-and after-sales supportLevels for improve-mentSource: Ericsson press release, IDC, McKinsey analysis18SAMSUNG010605BJ-kickoff2ERICSSON DISTRIBUTES THROUGH FIVE FIRST-TIER RESELLERSSource: IDCRat

39、ionalesEricsson uses PTAC, PTIC, Stellar, 508, and the United First as its 5 first-tier resellers.Since there is a huge price gap between official and parallel imports, the unit sales of Ericsson handset in China through official channels was affected resulting in downward pressure on handset prices

40、.Insufficient support provided by resellers limit the ability of its dealer and channels to provide pre- and after-sales support to customers, which greatly afftect Ericssons position in the China marketEricsson Channel StructureBeing a major mobile network equipment vendor, Ericsson maintains good

41、relationship with government bodies and distributes through PTAC, PTIC and local telecom operatorsVendorPTAC, PTIC, etc.ConsumersLocal telecom operatorsRetailers/retail chain stores19ORGANIZATION AND OWNERSHIP1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting ye

42、arNumber of employeesEra analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3. Product /marketMissionVisionCorporate st

43、rategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing20Ericsson has 10 JVs and 4 WOFEs in China, among which Beijing Ericsson Mobile and Nanjing Ericsson Mobile Terminal are devoted to mobile handsets. Ericsson believes that localization is key.Ericsson uses

44、 joint venture partners to enter the market, and established holding company in 1994 to better manage local operationsEricsson uses its own sales force to sell core products and delivers coordination to compete in “solution” salesKEY MESSAGES - ORGANIZATION AND OWNERSHIP21ServiceERICSSON CHINA HAS C

45、ENTRALIZED MANY COMMON FUNCTIONS FROM JVsEricsson China Ltd.Nanjing EricssonNanjing Ericsson mobile terminalBeijing Ericsson mobileGuangdong EricssonChongqing Ericsson technologyMarketing and brandingPurchasing and supplyManufac-turingSalesManufac-turingSalesR&DManufac-turingSalesServiceMarke-tingSa

46、lesServiceMobile infrastructureMobile handsetMobile handsetMobile base stationMobile infrastructureMobile infrastructureSource: Ericsson press release22SAMSUNG010605BJ-kickoff2ERICSSON HAS 10 JVs AND 4 WOFEs IN CHINA, AMONG WHICH 2 JVs ARE DEVOTED TO MOBILE HANDSETS Source:Ericsson press releases; l

47、iterature search; interviewsEricsson China Ltd.(Holding Co.) 1994Esta-blished yearBeijing EricssonBeijingEricsson MobileShang-hai EricssonHelong-jiang EricssonNanjing Ericsson Mobile TerminalGuang-dong EricssonNanjing EricssonWuhan Yangtze EricssonChong-qing Ericsson TelecomChong-qing Ericsson Tech.

48、Ericsson R&D center ShanghaiEricsson Consult-ing ShanghaiDalian Ericsson1994199519971995199219971998199819971999Product offeringPBX MD 110Mobile handsetMobile base stationElec-tronic compo-nentsTele-com equip-ment serviceMobile hand-setMobile infra-structure servicesGSM900/1800 AXE 10SDH trans-missi

49、on systemsDigital micro-waveMobile system market-ing sales and serviceSoft-ware applica-tionConsul-ting service for wire-less and fixed line opera-torsTech-nical service55% with Beijing Cable Telecom49% with PTIC, Beijing Telecom Com-ponents,Beijing Telecom Equipment, Yun Shing80% with Shanghai Simt

50、ek56% with GD PTA Guang-dong Mach-inery Import and Export55% with Nanjing Radio Factory, HK Yun Shing 47.5% with WRILongxing Invest-ment Chang-qing South-west Wireless telecom100%100%100%65% with Nanjing Panda23SAMSUNG010605BJ-kickoff2ERICSSON USES JV PARTNERS TO ENTER THE MARKET AND ITS OWN SALES F

51、ORCE TO SELL CORE PRODUCTSInfluence Ericsson corporate focused on top to top relationsJoint venture partners help to gain local customer accessPartnership structure & roleEricsson China (10 joint ventures and 4 WFOEs)Holding company aims to coordinate all activities in ChinaWFOE for software R&D in

52、ChinaLimited technology transfer to China heavily import dependentService joint ventures are cost centersRoute to marketEricssons sales force (based in the holding company) sells core products (switching and transmission)Joint venture sales force sells small and standalone productsWireless products sold through distributorsKey messagesUses joint venture partners to enter the market, then establishe