麦肯锡—三星竞争对手分析(NOKIA)精选课件.ppt

1、CONFIDENTIALMobile Handset Competitor Analysis:NokiaSAMSUNG 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 McKins

2、ey&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 emplo

3、yeesEra 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 focusPricing2KEY ISSUES TO PROBE-NOKIAStrategyProduct/marketValue chainstrategyOrganization&ownershipFinancialperformanceHow does Nokia position itself now and in 2019?What are Nokias product and value delivery system strategies that differe

5、ntiate itself from its competitors?How does its current market position help achieve its goal?What is Nokias key product offerings and how does Nokia differentiate its products from its competitors?What customer segments is Nokia targeting at?In which geographic areas is Nokia strong or weak?How doe

6、s Nokias product development meet customer requirement?How do Nokias distribution channels differ from its competitors?Why does Nokia launch exclusive specialist shops?How does Nokia provide customer services?How much does Nokia invest in JVs and WOFEs in China,and what are the main drivers?How does

7、 Nokia organize to enable the JVs and WOFEs to work together?How strong is Nokias performance and what are the major contributors?What is Nokias performance trend?3BACKGROUND INFORMATION1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra

8、 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/market MissionVisionCorporate strategyMarket positionKey prod

9、uct offeringsKey customersValue propositionGeographic focusPricing4NOKIA IS RELATIVELY A LATE-COMER TO CHINA;HOWEVERIT HAS GROWN RAPIDLY TO BECOME A MARKET LEADER IN MOBILE COMMUNICATIONBackgroundImplicationLocationBased at Finland,with offices in China,e.g.BeijingChina is Nokias strategic location

10、because it is Nokias second largest market,second only to USInvestmentInvested more than USD1.7 billion in China BusinessTwo main business units:Nokia network and Nokia mobileStartingFirst office in China in 1985,first JV in China in 1994Employees60,000 staff in 130 countriesMore than 20 offices in

11、China,7 JVs,1 WOFE and 1 R&D center with over 5500 staffHistoryStarted business in China since 1950s1985 saw first office in Beijing,supplying fixed line networksSupplied analog NMT 450 system and terminal in 1986Supplied transmission system,optical cable and electric cables in later 1980sSupplied a

12、nalog ETACS system and terminals in 1989Supplied GSM system and terminals in 1990sLeader in mobile communication globally and in ChinaAl though a relatively later-comer to China,has invested heavily in its Chinese businessFocused product lines with Nokia network offering mobile,broadband and IP netw

13、ork infra-structure,and Nokia mobile offering mobile handsetsSource:Nokia Press Release5STRATEGY1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership6.Financial performanceFocus on

14、 Marketing,advertising and promotion Distribution(channel and sales force)Organization structureOwnership structureSales Profit 2.Strategy 3.Product/marketMissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing6NOKIA POSITIONS ITSELF A

15、S A LEADING PRODUCT AND SYSTEM SUPPLIER IN THE FAST GROWING MOBILE COMMUNICATION INDUSTRYVisionTo lead mobile communication through the integration of mobilitywith internet and the innovation of new service modelsProductValue delivery systemStrategyFocuses on mobile communication products and aims t

16、o be a total solution provider in mobile communicationRegularly introduces consumer-oriented products with emphasis on designs and functionsBuilds strong local alliance through JVs with Chinese partners and R&D centers with Chinese universitiesBuilds exclusive specialist shops to bring one-step solu

17、tions to end usersBuilds fixed and mobile service stations with wide geographic coverage including rural areasSource:Nokia press Release7NOKIA HAS CAUGHT UP WITH MOTOROLA AS MARKET LEADERS IN MOBILE HANDSETS SINCE 2019Monthly market share development(Percent of market in units sold)9899Jan 00Dec 000

18、10203040NokiaMotorolaSiemens EricssonSource:IDC,McKinsey Analysis8UNLIKE ITS COMPETITORS,NOKIAS MARKET SHARE IS THE SAME AMONGST NEW AND REPURCHASE BUYERS313131282929101212877232121OthersNokiaEricssonSiemensMotorolaRepurchase BuyersNew BuyersTotal marketPercent of units sold,2000 4Q25%75%of Market10

19、0%Definition:New buyer:never bought mobile phone beforeRepurchase buyer:bought mobile phone before Source:IDC,McKinsey analysis9AMONG REPURCHASERS,NOKIAS CHURN RATE IS HIGH,BUT AT PAR WITH MOTOROLA Percent,2000 10633241566EricssonNokiaAlcatelOthersSiemensBrand bought by previous Nokia owners Motorol

20、aSamsung11326326319MotorolaAlcatelOthersSiemensBrand bought by previous Motorola owners NokiaSamsungEricssonSource:McKinsey analysis10PRODUCT/MARKET1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organ

21、ization and ownership 6.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 propos

22、itionGeographic focusPricing11Nokia has a narrow product portfolio focusing on mobile communication products,and mobile handset is Nokias key product offeringNokia offers consumer-oriented handsets with emphasis on designs and functions,targeting medium and low end customers.Its main customer segmen

23、ts are the young and fashionableNokias fashion phones are relatively strong in major cities and the south region;however Nokia is relatively weak in the fourth-tier citiesKEY MESSAGES-PRODUCT/MARKET12MOBILE HANDSET IS NOKIAs BIGGEST PRODUCT OFFERING AND ITS ESSENTIAL PART OF TOTAL SOLUTIONS IN MOBIL

24、E COMMUNICATIONNokia mobile handsetsNokia product offeringsNokia networkProductsNow and futureNokia 3310 for young peopleNokia 8210 for fashion chaserNokia 6210 WAP for business professionalNokia 7110 WAP with full Chinese interfaceNokia 9210 as personnel communicatorNokia 8310,6310 for GPRS and WAP

25、Mobile networkBroadband networkIP networkLargest mobile handset supplier in the world with above average growth in sales and more than 30%global market shareViews mobile handset as a digital convergence point for multimedia servicesSupports blue tooth between mobile handset and PC in Nokia 6310 for

26、mobile professionalDevelop WCDMA handsets with DoCoMoDevelops homenet products such as multimedia terminals in Nokia ZhongxinProvides multimedia service network solutions for operators and ISP entering the mobile communication fieldsNokia network covers many cities and areas in China including Beiji

27、ng,Shanghai,Hong Kong and Taiwan etc.Aims to be a total solution provider for mobile communication13NOKIA EMPHASIZES ON CONSUMER-ORIENTED DESIGNS AND FUNCTIONSFashion BusinessBasicFunChangeable cover Sub-100gVoice-dialRecordingVibrationTri-bandWAPBuilt-in modemIR-portChinese inputLi-Ion batterySMS m

28、essagingGamesComposable/downloadable ringer tone82106210P7689L2000V998+L2000WWWFashionClassicPrice in China(RMB)26522878236918001435*1452Equivalent features,Nokia more fun/fashion vs.Motorola more functionsMotorola offers lower price models with similar features,tri-band and WAP*Nov.2000 priceKey Di

29、fferences14WITHIN CHINA,NOKIAs FASHION PHONES PERFORM BETTER IN SOUTH CHINA AND LARGE CITIESNorth region East region South regionChina averageBeijingShanghaiShenzhenGuangzhou45755788Market sharePercent,2000 Source:McKinsey Analysis1531303024293028109911107772125243028Tier 1Tier 2Tier 3Tier 4NokiaMot

30、orolaOthersNOKIA IS RELATIVELY WEAK IN 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 Analysis160%5%10%15%20%25%30%35%40%Source:Retail Audit,McKinsey analysisAND THIS WEAKNESS IN 4TH TIER CITI

31、ES SPANS MOST PROVINCES Inner MongoliaHunanYunnanAnhuiGuangdongFujianZhejiangHeijongjiangJilinHenanJiangxiHebeiShanxiLiaoningSichuanShandongJiangsuShanxiHubeiGansuGuizhouPercent market share,NokiaMarket sharePercentProvinceTier 1/2/3 cityTier 4 city17VALUE CHAIN STRATEGY1.Background informationLocat

32、ionRegistered capitalManagementteamEquitystructureStarting 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 Pro

33、fit 2.Strategy 3.Product/market MissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing18Nokia is not regarded as a technology leader,as compared with Motorola;however,it spends a great amount of effort in understanding customer requir

34、ements and tailors its product to meet these requirements.Nokia employs PTAC,CellStar,Beijing Telecommunication Equipment Factory,Bright Point,Express Fortune,and Tech Glory as the first-tier resellers to distribute handsets through authorized stores and counters.The distribution channels are relati

35、vely flat.While its retail shops are growing rapidly to approximately 900 around the country,Nokia also develops exclusive specialist shops in order to provide“one-step”solutions to end usersNokia implements a highly efficient customer service system with 250 service stations and mobile service stat

36、ions for rural areas.It provides good pre-and after sales serviceKEY MESSAGES-VALUE CHAIN STRATEGY19NOKIA IS STRONG AT MARKETING,SALES AND SERVICE,BUT WEAK AT TECHNOLOGYManufac-turing and supply chainSales and distributionMarketing and branding R&DStrengthsLevers for improvementEstablished R&D cente

37、r in 98/99 in Beijing for China market,with 150 research staffStrong in low end developmentGood product quality and designWeaker position in high end segment and high end technologyPosition in low end under attack Scalable local productionOptimized logisticsCountry-wide distribution channels and str

38、ong channel management High retailers preferenceLower rating of retail support Retailer preference not translating into higher market shareStrong brand awareness and preferencePromotes“technology based on people”Awareness and preference lower than MotorolaBrand in young market under attack Low techn

39、ology image ServiceHighly efficient customer service system with 250 service stations and mobile service stations for rural areas Good pre-and after sales service,e.g.“one hour repair”service20.on Nokiaon MotorolaNOKIA HAS REPUTATION GAP AS TECHNOLOGY LEADER,AND TARGET DIFFERENT CUSTOMER SEGMENTS FR

40、OM MOTOROLANokia hasgood productdesignsNokia phonesare for female oryounger peopleNokia is second toupgrade productsMotorola productsare more formalMotorola alwaysintroduces newtechnology to themarket firstLoyal useris white-collarworker.on technology leadership and innovation.on design on typical l

41、oyal users21NOKIA DISTRIBUTES THROUGH SIX FIRST-TIER RESELLERS AND DEVELOPS EXCLUSIVE SPECIALIST SHOPSNokia Channel StructureLate entry to the China market with less historic overheadFlat distribution channelsDevelops exclusive specialist shopsProvides after-sale servicesSource:China Computer Journa

42、lVendor1st-tier resellersConsumers2nd-tier resellersRetailers/retail chain stores6%3%91%22%33%36%6%33%58%RationalesNokia employs PTAC,CellStar,Beijing Telecommunication Equipment Factory,Bright Point,Express Fortune,and Tech Glory as its 6 first-tier resellersNokia requires resellers to report the p

43、romotion plan and product ordering plans a quarter in advance,and since the demand for handsets tends to fluctuate across promotional programs,this inflexible strategy generally limits the potential gain when market demand changes across promotionsClose to 900 retail shops and counters country-wide,

44、with 50%growth from 2019Form exclusive specialist shop to provide one-step solution to end users 22ORGANIZATION AND OWNERSHIP1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership6.

45、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 propositionGeographic focusPri

46、cing23Nokia has 7JV and 1 WOFE in China,among which Nokia Beijing and Nokia Dongguan are manufacturing mobile handsets.Nokia Beijing has annual production capacity of 30 million units in 2019.The main drivers for Nokia to setup JVs and WOFEs in China include building local alliances,localizing manuf

47、acturing to meet domestic market demand and increase exports,and technology transfer encouraged by the Chinese governmentWith a narrow product portfolio,Nokias organization is product focused with coordinated sales and marketing effort across JVs that manufacture the same productsKEY MESSAGES-ORGANI

48、ZATION AND OWNERSHIP24NOKIA HAS 7 JVs AND 1 WOFE IN CHINA,AMONG WHICH 2 JVs ARE DEVOTED TO MOBILE HANDSETSMain driversBuilds successful alliance with Chinese partnersLocalizes manu-facturing for major productsMeets domestic market demandand increases exportsRealizes technology and skill transfer in

49、development,manufacturing and managementHelps Chinese partners improve competitiveness in China and globallyNokia internationalNokia Beijing mobile commu-nicationNokia Dongguan mobile phoneNokia Fujian mobile communication technologyNokia Beijing,Hangxing telecomNokia Dongda telecom technologyNokia

50、Zhongxin digital technologyNokia Suzhou telecomNokia Chongqin telecomEstablished yearProduct offering2019201920191994200020192019GSM system and equipmentMobile handsetsMobile handsetsGSM 900/1800 network servicesMobile switchesWireless applications solutions and servicesDigital multimedia terminalsG