麦肯锡-标杆企业分析.ppt

010417SHELM038JL_RAJv5i,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Unit of measure,*Footnote,Source:Source,CONFIDENTIAL,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.,August 20,2001,Mobile Handset Competitor Profile:Motorola,SAMSUNG ELECTRONICS CHINA(SEC China),OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK,1.,Background information,Location,Registered capital,Managementteam,Equitystructure,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,2,010417SHELM038JL_RAJv5i,BACKGROUND INFORMATION,1.,Background information,Location,Registered capital,Managementteam,Equitystructure,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,3,010417SHELM038JL_RAJv5i,MOTOROLA HAS HIGH ASPIRATIONS FOR ITS CHINA BUSINESS,Targeting sales of US$10 billion in China by 2002/2003,Focusing production operations in China,as production there is about 15-20%cheaper than in Singapore and 30-40%cheaper than in Europe,Source:Analyst reports,4,010417SHELM038JL_RAJv5i,MOTOROLAS CHINA BUSINESS SPANS SIX PRODUCT CATEGORIES,Motorola China,Mobile,handsets,Network,equipment,Pagers,Two-way,radios,Semi-,conductors,Auto,electronics and,accessories,Mobile,network,equipment,Fixed line,network,equipment,Wireless,communications,Source:Motorola website,Set up representative office in 1987,Operations include:,1 holding company,1 WOFE,8 joint ventures,26 subsidiaries,12,000 employees,US$3.4 billion total investment to date,5,010417SHELM038JL_RAJv5i,STRATEGY,1.,Background information,Location,Registered capital,Managementteam,Equitystructure,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,6,010417SHELM038JL_RAJv5i,MOTOROLAS HANDSET STRATEGY COMBINES AN ATTRACTIVE PRODUCT RANGE WITH SUPERB VALUE CHAIN MANAGEMENT,Developed a wide product range which covers all key price points and offers a wide range of functionality,Invested heavily in product localization through China-based R&D team,Expanded local manufacturing in order to reduce costs and improve time-to-market,Closely managed first-tier group of nine resellers in order to minimize price competition and facilitate order tracking,Committed handset promotion,Speedy roll-out of new releases,Provision of high-quality after-sales services,Advanced technology,Product range,Value chain,Core,competencies,7,010417SHELM038JL_RAJv5i,PRODUCT/MARKET,1.,Background information,Location,Registered capital,Managementteam,Equitystructure,Starting year,Number of employees,Era analysis,4.,Value chain strategy,5.,Organization and ownership,6.,Financial performance,Focus on,Marketingadvertising 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,8,010417SHELM038JL_RAJv5i,Motorola has entered the low-end of the mobile handset market since 1999.Its products are more function-driven compared with,Nokia,s products,which are more fashion-driven,Motorola takes more than 50%of the share in the high-end and high-mid-end of the mobile handset market,and more than 20%of the share in the low-end and mid-low-end.Its low-end handsets represent more then 50%of its product offerings,Motorolas market share is relatively consistent across tier-cities and geographies,taking approximately 30%everywhere,KEY MESSAGES-PRODUCT/MARKET,9,010417SHELM038JL_RAJv5i,MOTOROLA HAS RECENTLY FOCUSED ON BUILDING OUT ITS LOW-END PRODUCT PORTFOLIO,Product positioning Dec 2000,Business/professional,Personal,Product positioning Jun 2000,V8088(1.6%),Business/professional,Personal,V998(5.6%),LF2000(2.9%),LF2000(4%),368C(3.1%),338C(0.6%),T2688(4.8%),CD928(1.1%),V2188(3.8%),V2088(2.0%),A6188(1.4%),V8088(3.9%),V998+(7.0%),P7689(1.8%),L2000(2.2%),LF2000(1.7%),368C(2.3%),T2688(6.2%),V2188(1.3%),V2088(1.0%),366C(0.5%),T2288(0.3%),T360(0.3%),High,High-medium,Medium-low,Low,High,High-medium,Medium-low,Low,Source:Interviews,McKinsey analysis,10,010417SHELM038JL_RAJv5i,MOTOROLA MODELS ARE MORE FUNCTION-DRIVEN THAN NOKIA,Fashion,Business,Basic,Fun,Changeable,cover,Sub-100g,Voice-dial,Recording,Vibration,Tri-band,WAP,Built-in modem,IR-port,Chinese input,Li-Ion battery,SMS messaging,Games,Composable,/downloadable,ringer tone,8210,6210,P7689,V998+,L2000WWW,Fashion,Classic,Price in China(RMB),2652,2878,2369,1800,1452,Equivalent features,Nokia,more fun/fashion vs.Motorola more functions,Motorola offers lower price models with similar features,tri-band and WAP,*Nov.2000 price,Key differences,11,010417SHELM038JL_RAJv5i,Source:GFK,Sino-MR,MOTOROLA HAS HIGHER SHARES IN CHINA IN FASHION AND BUSINESS SEGMENTS,Nokia,Motorola,Models,2000,China,Taiwan,Hong Kong,Indonesia,Singapore,Flagship,8850,A6188,Fashion-High,8210,8250,V8088,V998+,Fashion-Low,3310,T360,T2988,T2688,Basic,3210,5110,V2088/2188,V2288,StarTac,CD928/938,Business,-low,6150,L2000 Series,Business -High,6210,7110,P7689,Total:,12010417SHELM038JL_RAJv5i,MOTOROLA HAS DRIVEN SALES INCREASES PARTICULARLY IN THE LOW-END PRODUCTS,Mid-low,(RMB1500-2500),High-mid,(RMB2500-3500),High,(RMB 3500),December 2000,April 2001,Product mix,Percent of units,Market share by price point,Percent,Low(RMB3500),Low(RMB1500),Source:Interviews,Sino-MR(Dec 2000-April 2001),McKinsey analysis,Mid,(RMB2000-2500),13,010417SHELM038JL_RAJv5i,MOTOROLAS MARKET SHARE IS RELATIVELY CONSISTENT ACROSS TIER CITIES AND GEOGRAPHIES,Market share by tier cities,Percent,Market share by geographic areas,Percent,North,West,Northeast,Central,Tier 1,Tier 2,Tier 3,2000,April 2001,South,East,Source:Sino-MR,GfK,Dec 2000-April 2001,14,010417SHELM038JL_RAJv5i,VALUE CHAIN STRATEGY,1.,Background information,Location,Registered capital,Managementteam,Equitystructure,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,15,010417SHELM038JL_RAJv5i,Motorolas value delivery system strategy has evolved since 1997.Product development has been more customer oriented and new releases are catering for needs by different customer segments.,Localization of mobile handset manufacturing has been furthered to a production capacity of 18 million units in,Tianjin,and 8 million units in,Hangzhou,.,With increasing investment in sales and marketing,Motorola is now the strongest brand in China,Motorola employs PTAC,CellStart,Heguang,Eastcom,SunYin,Sinya,North Telecom,Hengxin,and Forte as its 9 first-tier resellers.It intends to reduce the,many tiers of resellers that has become a disadvantage to Motorolas channel efficiency,Motorolas key strength lies in advanced technology,committed promotion,wide distribution network and quality after-sales service,KEY MESSAGES-VALUE CHAIN STRATEGY,16,010417SHELM038JL_RAJv5i,MOTOROLAS VALUE CHAIN HAS EVOLVED OVER THE PAST THREE YEARS,From.(1997),To.(2000/2001),Manufacturing,Sales and marketing,Distribution,Production capacity in,Tianjin,(1.5 million)and,Hangzhou,(200,000),Strong brand awareness,Market share 34%,50%,reimport,via Hong Kong,Strong nationwide tiered dealer network(10-15 tier A dealers),Close relations with PTTs,Expanding production capacity at,Tianjin,to 18 million units,and at,Hangzhou,to 8 million units,Strongest brand awareness in China,Developed needs-based customer segmentation,Market share 30%,50%,reimport,via Hong Kong,Number of dealers limited to 9;shared exclusivity by product,Kept strong retail support(doubled marketing and sales staff since 97),Source:Interviews,McKinsey analysis,17,010417SHELM038JL_RAJv5i,MOTOROLAS KEY STRENGTHS LIES IN ADVANCED TECHNOLOGY,COMMITTED PROMOTION,WIDE DISTRIBUTION NETWORKS AND QUALITY AFTER-SALES SERVICES,Source:IDC 2000,Key strengths,Recent development,Committed handset promotion,Speedy roll-out of new releases,Strong brand recognition,Pays more attention to market needs,Continues to promote models with free gifts,Sales and marketing,Has nine first-tier resellers,the largest number among vendors,Price competition among resellers is eliminated,Can effectively manage the production volume with close tracking of orders from the channels,Best vendor on channel support in promotion,advertisement,service centers and funding,Altered its strategy in 2000 to employ two authorized reseller from every model,Distribution,Provision of quality after-sales services,Sets up Internet-based consumer club and plans to double service stations in 2001,After-sales services,Advanced technology,Highly localized products-strong local R&D(800 engineers,18 research centers,investment 13 b.RMB),High rate of new product introduction(9 new products in 2000),Ready for 3G,Product development,18,010417SHELM038JL_RAJv5i,MOTOROLA DISTRIBUTES EXCLUSIVELY THROUGH NINE FIRST-TIER RESELLERS,Source:IDC,Rationales,Motorola employs PTAC,CellStart,Heguang,Eastcom,SunYin,Sinya,North Telecom,Hengxin,and Forte as its 9 first-tier resellers.,Historically assigned one Motorola model to each reseller,Eliminates price competition,Enables Motorola to effectively manage production volume with order tracking,Recently shift strategy to have 2 authorized resellers for every model in order to improve promotions and access to customers,Motorola is the best vendor on channel support as promotion and advertisement is provided.It also helps resellers to set up service centers to handle repair and maintenance services.,As the leading vendor in China,Motorolas channel strategy is of continued importance,Motorola Channel Structure,Motorola,s well-built distribution network plays an important role in its success in China,Too many tiers of resellers become a disadvantage to Motorola,s channel efficiency,Vendor,1,st,-tier resellers,2,nd,-tier resellers,Retailers/retail chain stores,Consumers,100%,21%,64%,3%,85%,12%,76%,19,010417SHELM038JL_RAJv5i,ORGANIZATION AND OWNERSHIP,1.,Background information,Location,Registered capital,Managementteam,Equitystructure,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,20,010417SHELM038JL_RAJv5i,Motorola has 8 JVs,1 WOFE and 1 holding company in China,among which,Hangzhou Eastcom,Cellular Phone(8 million units production capacity)and Motorola,Tianjin,(MCEL,18 million units capacity)are devoted to mobile handsets,Motorola is mainly organized along product lines,however,its WOFE in,Tianjin,has been reorganized to be more customer focused.Motorola,Tianjin,is divided into 4 sectors,i.e.Personal Communication for consumers,Commercial,Government and Industrial Solutions for corporate and government,Global Telecommunication Solutions for telecom operators,and Integrated Electronic Systems for assemblers,KEY MESSAGES-ORGANIZATION AND OWNERSHIP,21,010417SHELM038JL_RAJv5i,MOTOROLA HAS 8 JVs AND 1 WOFE IN CHINA,AMONG WHICH 1 JV AND THE WOFE ARE DEVOTED TO MOBILE HANDSETS,Motorola(China)investment,Leshan,-Phoenix semi-conductor,Shanghai Motorola paging products,Hangzhou,Motorola Mobile,communi,-,cation,Hangzhou Eastcom,cellular phone,Shanghai,zhongmei,automotive electronics,Huamin,Smart card,Beijing,Huamin,smart card system manufacturing,Motorola,Tianjin,(MCEL),Established year,Product offering,1995,1995,2000,2000,1999,1998,1992,Semiconductor,Pager,GSM and CDMA network,Mobile handsets,Automotive electronics,Smart card system and product,Mobile handsets,Mobile infrastructure,Semi-conductors,Two-way radios,Base stations,Handset accessories,With,Ansenmei,and,Leshan,Radio,With Shanghai Radio(SRCEM),With,Eastcom,and,Putian,42%,With,Eastcom,and,Putian,With Shanghai GE,With Sino-overseas construction information,100%,Source:Motorola press release,22,010417SHELM038JL_RAJv5i,MOTOROLA IS ORGANIZED ALONG PRODUCT LINES,HOWEVER ITS WOFE IN TIANJIN HAS BEEN REGORGANIZED TO BE MORE CUSTOMER FOCUSED,R&D Hang,Zhou,/,Shanghai,Manu-,facturing,Sales,Services,Manu-,facturing,Sales,Services,Motorola China,Personal,communication,Commercial,government and industrial solutions,Global Tele-communication solutions,Integrated Electronics Systems,Asia,tele,-communication product manufacturing site,(planned),R&D,Manu-,facturing,R&D,Manu-,facturing,Sales,R&D,Manu-,facturing,Sales,R&D,Manu-,facturing,Mobile handset*pager,*In 2001,18 million units capacity,GSM,CDMA Mobile network and handsets,GSM,CDMA Mobile network,Mobile handsets*,*In 2001,5 million units production,8 million units capacity,Two way radio,GSM,CDMA systems,e.g.,base station,Batteries,Hangzhou,Motorola mobile communication,Hangzhou,Eastcom,cellular phone,Motorola,Tianjin,(MCEL),Marketing,Source:Motorola press release,23,010417SHELM038JL_RAJv5i,FINANCIAL PERFORMANCE,1.,Background information,Location,Registered capital,Managementteam,Equitystructure,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,