麦肯锡三星战略3西门子精选课件.ppt

1、CONFIDENTIALMobile Handset Competitor Analysis:SiemensSAMSUNG ELECTRONICS CHINA(SEC China)August 20,2019This 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 McKi

2、nsey&Company.This material was used by McKinsey&Company during an oral presentation;it is not a complete record of the discussion.SAMSUNG010605BJ-kickoff2OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of emp

3、loyeesEra 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 positionK

4、ey product offeringsKey customersValue propositionGeographic focusPricing2KEY ISSUES TO PROBE-SIEMENSStrategyProduct/marketValue chainstrategyOrganization&ownershipFinancialperformanceWhat does Siemens aim to be in 2019 in mobile communication?How are Siemenss product and value delivery system strat

5、egies 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 2019?How does Siemenss distribution

6、 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?3BACKGROUND INFORMATION1.Background informati

7、onLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership6.Financial performanceFocus on Marketing,advertising and promotion Distribution(channel and sales force)Organization structureOwnership structureSal

8、es Profit 2.Strategy 3.Product/market MissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing4CHINA HAS DEVELOPED INTO A MAJOR PILLAR FOR SIEMENS BUSINESS IN ASIA PACIFICLocationBased at Germany50+JVs,28 offices in China Shanghai is th

9、e largest Siemens location outside GermanyInvestmentInvested USD 0.44 billion in ChinaBusinessAll business sectors of Siemens including information and communication,automation and control,power,transportation and household appliance,etc.StartingEntered Chinas telecommunication in 1985Information an

10、d communication business started 1991Employees 30,000 staff in information and communication mobile globally25,000 employees for all business sectors in china History1982 Siemens Beijing office opened1985 entered Chinas telecommunication market1990 established JV Beijing International Switching Syst

11、em1994 Siemens China founded in Beijing2019 formed business segment-Information and Communication2000 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 UnicomImplicationAn early entra

12、nt to Chinas telecommunication marketBroad product portfolio representing all business sectors of Siemens worldwideSource:Siemens press release5STRATEGY1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.O

13、rganization and ownership6.Financial performanceFocus on Marketing,advertising and promotion Distribution(channel and sales force)Organization structureOwnership structureSales Profit 2.Strategy 3.Product/marketMissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue pro

14、positionGeographic focusPricing6SIEMENS AIMS TO BE NUMBER 2 IN MOBILE COMMUNICATION MARKET IN CHINA Product 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 Value d

15、elivery system 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 2000Intensive marketing on new products with most competitive pricing Carefully select exclusive channel partner PTAC t

16、o maintain uniform price level nationwide to ensure healthy sales Helps resellers set up service centers to handle repair and maintenanceVisionTo be number 2 in the Asian mobile communication market(without Japan and Korea)7SIEMENS IS RISING STEADILY IN MOBILE HANDSETS SINCE 2019Monthly market share

17、 development(Percent of market in units sold)9899Jan 00Dec 00010203040NokiaMotorolaSiemens EricssonSource:Retail AuditSource:IDC,McKinsey Analysis8SIEMENS HAS OVERTAKEN ERICSSON TO BE NO.3 IN MOBILE HANDSET BY BOTH REVENUE AND SALES VOLUMEOthers SiemensEricssonMotorola3332342927268777810599181714201

18、920192000Samsung NokiaBreakdown of sales by brand each yearPercentSource:GfK,IDC,McKinsey analysisOthers SiemensEricssonMotorola34293032282888981012387151714201920192000Samsung NokiaBreakdown of units sold by brand each yearPercent9PRODUCT/MARKET1.Background informationLocationRegistered capitalMana

19、gementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership 6.Financial performanceFocus on Marketing,advertising and promotion Distribution(channel and sales force)Organization structureOwnership structureSales Profit 2.Strategy 3.Product/

20、marketMissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing10Siemens offers a compete range of mobile communication solutions including devices,infrastructure and applications.Siemenss mobile handsets come with good quality and compe

21、titive pricingSiemens 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 2200Siemens has devoted great attention to the important 4th-tier cities and west China,hence its market share in these developing areas are relatively h

22、igher than its share in the more developed areas.KEY MESSAGES-PRODUCT/MARKET11SIEMENS OFFERS A COMPLETE RANGE OF MOBILE SOLUTIONS INCLUDING DEVICES,INFRASTRUCTURE AND APPLICATIONSProductsNow and futureInformation and communication mobileSiemens product offeringsInformation and communication networks

23、Mobile networkWireless home network&office networkMobile handsetC2588(small,light smart)S2588(brain truster)3508(small,light,sexy)3518i(tough enough)3568i(smart thinking)Broadband networkIP networkFixed-line networkTransmission networkOffice networkCable networkTake TD-SCDMA mobile handsets to seria

24、l production level by 2019Offer 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,pursuingIP driven

25、voice and data communication and customer-oriented end-to-end solution and services Source:Siemens press release12SIEMENS MODELS HAVE THE MOST COMPETITIVE PRICINGSource:McKinsey Analysis Product positioning Dec 2000A6188(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.

26、2%52.2%Business/professional Personal*WAP phoneProduct positioning June 20009110S800C(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%)3

27、68C(3.1%)3508(1.6%)338C(0.6%)T2688(4.8%)11.4%17.4%25.3%45.9%High High-mediumMedium-low Low Business/professional Personal*WAP phoneV998+(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

28、%)V2088(1.0%)3210(9.6%)5110(5.9%)Retail price High High-mediumMedium-low Low Retail price RMB 3,500RMB 2,200RMB 1,600368C(2.3%)V2188(1.3%)RMB 3,500RMB 2,200RMB 1,600Red-NokiaWhite-MotorolaBlue-EricssonBrown-SiemensGreen-Samsung8250(0.0%)6210(0.6%)13SIEMENS TARGETS MID TO LOW END OF THE MARKETHigh(RM

29、B 3,500)Source:Sino-MR(Jan 2019 Feb 2019),CCIDBreakdown of unit sold by brand for each price pointPercentHigh-mid(RMB 2,500-3,500)Mid(RMB2,000-2,500)Mid-Low(RMB1,500-2,000)Low(RMB1,500)565123241629323400121013141615433010550171800020Others SiemensEricssonMotorolaSamsung Nokia9%15%7%Units as%of total

30、26%43%71431303024293028109911107772125243028Tier 1Tier 2Tier 3Tier 4NokiaMotorolaOthersSIEMENS ALSO ADDRESSES THE IMPORTANT 4TH TIER CITY MARKETPercent market share,2000EricssonSiemens18%19%23%40%Tier size as%of total100%=Million units 6.77.08.514.8Source:McKinsey Analysis15SIEMENS IS RELATIVELY STR

31、ONG IN CENTRAL,EAST AND WESTMarket share by brands per geographic area,2019PercentMarket share by geographic areaPercent293129312828302529262926141613131117987581315121513146410571311EastSiemensEricssonSamsungOthersNokiaMotorolaWestNorthNorth-eastSouth3013151311Central18Source:GfK,McKinsey Analysis1

32、6VALUE CHAIN STRATEGY1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership 6.Financial performanceFocus on Marketing,advertising and promotion Distribution(channel and sales force)

33、Organization structureOwnership structureSales Profit 2.Strategy 3.Product/market MissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing17Siemenss value delivery system strategy has evolved since 2019.It has invested$1.5 billion in th

34、e Asian Pacific area as its Asian offensive campaignSiemens 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 2019.It is a leader in TD-SCDMA 3G techno

35、logy 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

36、 level in the market is maintained nationwide to ensure healthy sales.KEY MESSAGES-VALUE CHAIN STRATEGY18SIEMENS VALUE DELIVERY SYSTEM HAS EVOLVED OVER THE YEARS From.(2019)To.(2000)No R&D facility in ChinaNo product localizationProduction capacity in Shanghai Pudong(150,000)60%of products for Chine

37、se market produced in Hong KongBrightpoint handling over 90%of distributionMarket share less than 5%ProductProduction DistributionMarketing High commitment to TD-SCDMA tests across China in 2019Asian offensive campaign with US 1.5 billion investment in R&D and marketing until 2019Production capacity

38、 in Shanghai has been raised to 14 million units from 10 million units in 2000 Uses different distributor(PTAC),but still only one nationwideMarket share 12%as a result of intensive marketing of new models with competitive pricingAims to increase market share to 15%Source:Interviews,McKinsey analysi

39、s19SIEMENS INVESTS TREMENDOUS EFFORT IN EVERY PART OF THE VALUE CHAIN R&D Manufacturing and supply chainMarketing and branding Sales and distribution Service StrengthsR&D centers for mobile communication in Beijing and Shanghai with more than 500 engineers planned Lead international forum in TD-SCDM

40、A 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 PTACCapable after-sales service with 100 service stations nationwideLevers for improvement L

41、acks capability in W-CDMA and CDMA 2000Fully dependent on single national distributor Source:World computer journal,McKinsey analysis20SIEMENS VALUE DELIVERY SYSTEM IS ORGANIZED AROUND PRODUCT LINES WITH MULTIPLE CUSTOMER INTERFACESValue delivery systemCustomer interfacesIC Mobile and IC Network com

42、municate with the same telecom operators separately,with“multiple faces”010726BJESM003CSAVv5.i14Washing machineRefrigerator/freezerMobile handsetMobile networkSwitchingTransmissionR&DManufacturingMarketing and brandingSales and distributionServiceBSWH JiangsuBSYC AnhuiGermanyGermanyGermanyGermanySie

43、mens GuangdongBeijing International Switching System CorporationSiemens ShanghaiSiemens ShanghaiSiemens ChinaBSWH JiangsuBSYC AnhuiRetailerPTACSource:McKinsey analysis21SIEMENS DISTRIBUTES THROUGH EXCLUSIVE NATIONAL RESELLER PTACSource:IDCRationalesSiemens partners with PTAC,taking advantage of thei

44、r 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 salesSiemens Channel StructureRely on both 1st-tier national reseller PTAC and 2nd-tier p

45、rovincial resellersDevote much attention to low-tier city marketVendor1st-tier resellersConsumers2nd-tier resellersRetailers/retail chain stores12%9%79%67%12%67%12%21%22ORGANIZATION AND OWNERSHIP1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of emp

46、loyeesEra analysis4.Value chain strategy5.Organization and ownership6.Financial performanceFocus on Marketing,advertising and promotion Distribution(channel and sales force)Organization structureOwnership structureSales Profit 2.Strategy 3.Product/marketMissionVisionCorporate strategyMarket position

47、Key product offeringsKey customersValue propositionGeographic focusPricing23With a large product portfolio covering information and communication and home appliances etc.Siemenss organization is product focused with clear lines of P&L responsibilitiesSiemens has over 50 JVs and WOFEs in China with l

48、arge commitments in telecommunication.Siemens Shanghai is devoted to mobile communication including mobile handsetsSiemenss 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 ChinaSiemens

49、 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 directlyKEY MESSAGES-ORGANIZATION AND OWNERSHIP24010726BJESM003CSAVv5.i13Siemens International BSH Bosch and Siemens household appliances Info

50、rmation and communication networkConsumer electronics(BSWH Jiangsu,BSYCAnhui)R&D Manufactur-ing Sales and marketing Siemens China Information and communication network(BJ Intl Switching Corp,Siemens Guangdong)Information and communication mobile(Siemens Shanghai)Marketing HR Finance Legal R&D Manufa