069麦肯锡-NOKIA制胜美国市场报告

1、CONFIDENTIALThis 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 & Company. This material was used by McKinsey & Company during an oral presentation;

2、 it is not a complete record of the discussion.Discussion documentDecember 2000Nokia Case Study: Winning in the U.S.FINGERPRINT NOKIA Rationale Focused on high growth categories (e.g., mobile phones, digital)Anticipated shift to digital technology in the U.S. before competitors and directed resource

3、s to optimize opportunity; tailors products to target customers (e.g., fashion covers for younger segment)Some difficulty to attracting top-tier local senior management due to glass ceiling (e.g., all senior leadership in Finnish0; Finnish managers used to manage U.S. operationsSucceeds in attractin

4、g top engineers because of attractive productsLocal managers have limited autonomy and accountability exists at the unit level, but head office retains final input Difficulty translating “The Nokia Way” to U.S. (“The culture doesnt have the same richness or value as it does in Europe”)Devotes suffic

5、ient resources to local organization to win in market (e.g., provided resources for U.S. to win in mobile phone segment)Outsources non-core technologies (e.g., microprocessors from Intel, components form Motorola) and uses standard components to save on R&D spend and react faster to changing technol

6、ogies than its competitors; leverages partnerships for more efficient R&D (e.g., JV with Cisco, Geoworks, HP)N/ACreates broad distribution reach through numerous, innovative relationships with retailers and distributors (e.g., Sears, AT&T wireless services,Tandy)Develops and launches innovative mark

7、eting campaigns (e.g., first to target consumers rather than professionals)Successfully allies and acquires to gain capabilities (e.g., joint venture with Tandy for distribution, acquisition of Mobira to enter promising mobile phone area)HighLowEncourages sharing of best practices but has not been v

8、ery successful at doing so to date1NJ-262408.756/001031NdkocHR1NOKIAKey facts Largest 1 -3 year revenues growth of competitorsLargest mobile phone manufacturer and second largest provider worldwide (behind Ericsson)Products Mobile phonesGSM/DSC networksCompetitorsEricssonMotorolaTimeline 18651990sDe

9、veloped into conglomerate (flooring, TV, footwear, etc.) until refocusing on high growth mobile phone segment in late 1980s and 1990sDivests non-core businesses19951999AmericasROWEURRevenues$ BillionsStock appreciation (1998-99)NokiaS&PS&P cell and wireless indexCAGR %Capabilities First to use mass

10、marketers as distributors (e.g., selling mobile phones in Radio Shack)Uses alliances for distribution channels (e.g., AT&T Wireless Services, Sears)Adopts consumer rather than professional focus in marketing, unlike competitorsUses alliances in R&D to grow development capabilities (HP, Cisco, Geowor

11、ks)Organization Autonomy provided to senior leadership in local subsidiariesTop management is all Finnish; obstacle to hiring top U.S. talentStrong emphasis on corporate values and culture with “The Nokia Way” teamwork, innovation, production; difficult to implement in U.S.Excellent opportunities fo

12、r advancement-fast career tracks, early responsibility, rotation programsHierarchy and bureaucracy reducedYoung, innovative, non-rigid leadership styleRated in Fortune top 100 firms to work for in the U.S. ProductGrew mobile phone segment from 16% of total sales in 1991 to 66% in 1999Allied to gain

13、product expertise (e.g., Motorola to standardize technology, Cisco and HP to develop network products)Technology design innovator; first to market with many product innovations Tailored product to target key customers (e.g., phones with fashionable, changeable covers to attract young segment)Backgro

14、undLevers for success19.86.2Founded as paper mill58% CAGREnters U.S. through Tandy JVGrows mobile business in U.S.19881983Acquires Mobira1981Operates as a conglomerate1960s2NJ-262408.756/001031NdkocHR1CONTENTSCompany overviewU.S. market entry strategyProductsCapabilitiesOrganization 3NJ-262408.756/0

15、01031NdkocHR1NOKIA COMPANY BACKGROUNDFounded 1865, in Finland, as a pulp and paper millEntered U.S. in 1983, when cellular service was just launching in the U.S.Global employees 55,260; in U.S. 10,500CEO: Jorma Ollila (Finnish)Most senior managers for U.S.: Kari-Peleka Wilska, President of Americas

16、Rich Geruson, Head of USA Sales and Marketing for Nokia Mobile PhonesKey divisions: Mobile Phones, Nokia Networks, Communications ProductsMarket cap: $193.3 billion (as of October 27,2000)Key industry of focus: Mobile phones (65% of 1999 total sales)Number 1 mobile phone maker globallyNumber 2 GSM/D

17、CS mobile phone networks provider globallyCompetitors: Motorola, Ericsson 4NJ-262408.756/001031NdkocHR1COMPANY EVOLUTIONSource:International Directory of Company Histories1800sFounded 1865 in Finland as pulp and paper manufacturerConstructs own power plants as industry becomes energy intensive1960sM

18、erges with Finnish Rubber Works and Finnish Cable Works in 1966 as part of diversification planBegins to design and manufacture data processing, industrial automation, and communications systemsNokia conglomerate consists of integrated cable operations, electronics, tires, and rubber footwearMakes f

19、irst public share offering in 19661970sOil crisis in 1973 reduces reliance on exports (timber products and machinery) to Soviet Union (12% of sales)Kari Kairamo, appointed CEO in 1975, realizes that for Nokia to grow it has to expand abroad; expands Nokia in Scandinavia and EuropeSells switching sys

20、tems under license from allocated (French)Helps design worlds first international cellular system in the 1970s1980sAcquires nearly 20 electronics companies over the decade and completes key mergersAcquires Mobira (Finnish mobile phone company) in 1981, to gain foothold in growing mobile phone segmen

21、tMerges Salora (largest TV manufacturer in Scandinavia) and Luxor (Swedish-state owned electronics and computer firm) in 1984Through the 80s, manufactures OEM equipment for Hitachi; Ericsson, Northern Telecom, Granada, IBM Enters U.S., in 1983 through JV with Tandy Corporation to sell Nokia phones u

22、nder Tandy nameLaunches first product (mobile phones) marketed internationally under Nokia brand name in 1986Nokia has evolved substantially since its foundation, moving from a Finnish paper mill, to a diversified Finnish conglomerate to a global wireless leader.1990sAggressively grows mobile phone

23、business in the U.S.Buys Tandys share of JV in 1993 to fully own factories in U.S. and South KoreaSigns significant contracts to increase distribution channels (e.g., AT&T Wireless Services)Conglomerate phaseExpands in Scandinavia and EuropeAcquires and allys into mobile phones and U.S.Allys to stre

24、ngthen U.S. position5NJ-262408.756/001031NdkocHR1TimeHorizon 1Drive core growthHorizon 2Build momentum of emerging growth enginesHorizon 3Secure future optionsProfit“We are now benefiting from the visionary technological solutions we made years ago; the long-term success of our company requires cons

25、tant agility in positioning ourselves in this dynamic industry.” Jorma Ollila, CEO“To identify what is required in the long term you need the competencies and the products; getting the right focus is the tough part.” Jorma Ollila, CEO“The CEO has to understand the dynamics of each business the compa

26、ny is in; in order to understand where the future lies.” Jorma Ollila, CEOSource: Annual reports; press clippingsLEADERSHIP COMMITMENT ACROSS THREE HORIZONSWhen planning Nokias future development, CEO Jorma Ollila distinguishes clearly between three waves. The first wave emphasizes the continuous ex

27、ploitation of Nokias core businesses. The second wave requires the identification of capabilities and products that will have impact on Nokias success in the immediate future. Finally, the third wave determines the companys future direction through setting aspirations and placing options.6NJ-262408.

28、756/001031NdkocHR1PLANNING ACROSS THREE TIME HORIZONSProfitHorizon 1Horizon 2Horizon 3Drive core growthBuild momentum of emerging growth enginesSecure future optionsProducts Boost mobile phone sales through brand-building efforts Make product extensions such as “Swatch-like neon-colored mobile phone

29、s” Expand product range through new features and complementary accessories, such as phone covers or different battery sizes Create R&D alliances for product development in wireless data transmission and terminal technology Increase sales of fixed and cellular network to public telecom operators Win

30、private telecom operators as new customers Launch first wireless products (e.g., Nokia 9000 Communicator, a portable with phone, fax, email, Internet access all in one)Markets Further penetrate Scandinavia, parts of Western Europe Improve positioning in Asia/Pacific, US, other EU-countries through s

31、tronger distribution network Prepare for full deregulation of telecom industry and entry into remaining marketsTimeHorizon 1Drive core growthHorizon 2Build momentum of emerging growth enginesHorizon 3Secure future optionsSource: McKinsey analysis7NJ-262408.756/001031NdkocHR1SENIOR MANAGEMENTSource:A

32、nnual Report Spent 6 months in the U.S. in 1999 Spends 50% of his time in Silicon Valley8NJ-262408.756/001031NdkocHR1 * As of January 2000Source:Epsicom Business Intelligence NOKIA ORGANIZATIONAL STRUCTURE “I am influenced by the American way of managing companies; solving problems through organisin

33、g and motivating people, rather than seeking a technical solution.” Jorma OllilaNokia GroupJorma Ollila, CEOHead office functionsCFOInternational Trade PolicyTechnologyResearch CenterGeneral CounselHuman ResourcesCommuni-cationsInternational Trade AffairsNokia NetworksNokia Mobile PhonesNokia Commun

34、ications ProductsNokia Multimedia TerminalsNokia Industrial ElectronicsNokia VenturesNokia Research CenterNokia Internet CommunicationsNokia Ventures FundInternal Venturing UnitNokia Wireless Business CommunicationsNokia Wireless Software SolutionsNokia IP Application and Connectivity Platform9NJ-26

35、2408.756/001031NdkocHR1World telecom equipment indexS&P 500NokiaNOKIA STOCK PRICE COMPARISON$ ThousandsSource:Data streamValue198819891990199119921993199419951996199719981999Nokia clearly outperforms the market and its competition.10NJ-262408.756/001031NdkocHR1Asia-PacificEurope19951996199719981999N

36、OKIA SALES BY REGIONEuro MillionsNokias sales in North America have grown dramatically in the late 90s with a CAGR of 58 percent, while European contribution to sales has diminished steadily shrinking.North America6,1916,613 8,84913,32619,772CAGRPercent34372658Source:Annual reports100% =11NJ-262408.

37、756/001031NdkocHR1ROWFinland(676)1991 100% = EURO 2,600ROW1999 100% = EURO 19,772Finland (395)Nokias sales in Finland have fallen dramatically as a percentage of total sales.Source:Annual reportsEuro MillionsNOKIAS FINLAND SALES COMPARED TO REST OF WORLD12NJ-262408.756/001031NdkocHR1NOKIAS INDUSTRY

38、FOCUS AND PRODUCT MIXEuro MillionsSource:Annual reportsSales by productConsumer electronicsCables and machineryMobile productsTelecommuni-cations1991 100% = EURO 2,600Basic industriesNetwork solutionsMobile products1999 100% = EURO 19,772Home, multimedia, and otherNokias productsMobile products full

39、 range of digital and analog cellular phones, wide-area pagers, as well as accessories and components for mobile phonesNetwork solutions telecommunication systems and equipment for both fixed and mobile networks; principal products include digital exchanges, transmission systems, and cellular system

40、s, which are sold to PTT, public utilities, new operators, and cable TV companiesHome, multimedia and other includes PC and workstation monitors, as well as interactive digital satellite and cable terminalsIn 1998, Nokia became the worlds largest manufacturer of mobile phones, selling 40.8 million h

41、andsets, and grew sales grew 51 percent from 1998 to 1999.“Three years ago wedecided to create a telecom-orientedcompany. We have been able toimplement the changes faster thanwe expected.” Jorma Ollila, Financial Times, 09/07/199513NJ-262408.756/001031NdkocHR1SUBSIDIARY LOCATIONS AND RESEARCH CENTER

42、SNOT EXHAUSTIVE(5)(2)(3)(1)(3)(14)(3)(1)(4)(1)(17)(2)(3)(1)(5)(1)(2)(1)(5)(6)(3)(1)(3)(4)(2)(2)(2)(2)(2)(1)(2)(2)(2)(6)(1)(2)(3)(3)(1)(1)(1)(9)(7)(2)(2)(1)(1)(1)(1)(1)(1)(2)(1)(1)(1)(1)(1)(6)(7)(3)(2)ResearchNokia covers an expansive geography.14NJ-262408.756/001031NdkocHR1CONTENTSCompany overviewU.

43、S. market entry strategyProductsCapabilitiesOrganization 15NJ-262408.756/001031NdkocHR1STORYLINEAt the beginning of the 1980s Nokia was still a diversified company, relying predominantly on Europe (particularly Scandinavia) to drive salesHowever, the company realized that significant growth would be

44、 dependent on building a major presence in the U.S. market, in high return segmentsTo do so they acquired Mobira (Finland) in 1981 to gain a foothold in the rapidly emerging mobile phone sector. They rapidly grew this opportunity in the U.S. through a series of OEM relationships (GTE, Delco, Southwe

45、stern Bell, Bell Atlantic) and a joint venture with Tandy Corporation in 1983Nokia launched their own brand mobile phone in 1986 and pursued aggressive branding and alliance strategies (e.g., Rooftop Communications, Compaq, AT&T Wireless Services) to solidify their presence16NJ-262408.756/001031Ndko

46、cHR1Nokia was the first player to use mass market distribution channels for telecommunications equipment.Source:International Directory for Company Histories, Annual Reports, press clippings1992Begins to aggress-ively market own branded products 198319921993199519971983Cellular service launched in U

47、.S.; JV with Tandy Corp. to sell Nokia phones through 6,000 Radio Shack stores; JV includes joint ownership of factories1992Nokia and Tandy Corp. open a mobile phone factory in Texas; North and South American markets are half of global mobile phones market199619941997CFO of Nokia deployed as Head of

48、 U.S. business; U.S. subsidiary sees immense growth from 1997-991993Acquires Tandys share in both manufacturing companies; overall, operates 5 factories; continues selling through Tandy retail formatsDe-emphasizes consumer electronics business1995New distribution facility opened in Fort Worth, TXGra

49、nted license to American Portable Telecom (private cellular network operator) for PCS 1,900 MHz product1996Signs significant contracts with AT&T Wireless Services, Sprint Spectrum, and Powertel1986Launches own brand product globally1988Divests flooring, paper, rubber, and ventilation systems busines

50、ses19861988Early and mid-eightiesAggressively sought and signed OEM deals with numerous U.S. companies (e.g., GTE, Delco, etc.)TIMELINE OF KEY EVENTS IN NOKIAS U.S. BUSINESS17NJ-262408.756/001031NdkocHR1CONTENTSCompany overviewU.S. market entry strategyProductsCapabilitiesOrganization 18NJ-262408.75

51、6/001031NdkocHR1Nokia made big bets as to which technologies would emerge, redirecting resources and company focus to emphasize these categories.PRODUCT STRATEGY“The choice of focus is extremely important. We constantly strive to make sure we are focused on targeted markets in which the growth rate

52、is much higher than that of the total market, Nokias aim is to grow somewhat faster than the targeted markets do.” Matti Alahuta, President, Mobile Phones 19NJ-262408.756/001031NdkocHR1Nokias acquisitions in the U.S. were primarily to broaden its product capabilities.PRODUCT ACQUISITIONSSource:Secur

53、ities Data Corporation and press clippings20NJ-262408.756/001031NdkocHR1CONTENTSCompany overviewU.S. market entry strategyProductsCapabilitiesOrganization 21NJ-262408.756/001031NdkocHR1Developed, launched and ran innovative consumer goods marketing campaigns unlike their competitors who were running

54、 professional focused campaignsEstablished brand name in the U.S. through clever consumer segment targeting (e.g., extensive ads on MTV to reach younger segments)MarketingDeveloped relationships with retailers and distributors to broaden and deepen market penetrationJV with Tandy Corporation to sell

55、 through Radio ShackOEM manufacturing for GTE, Delco, Southwestern Bell, Bell Atlantic mobile systems and othersDistribution agreement with SearsDistribution contracts with AT&T Wireless Service for Nokia branded mobile phonesDistributionR&D controlled out of Finland Leveraged partnerships for more

56、efficient R&DCooperation with Geoworks to develop next generation wireless productsJVs with Hewlett-Packard, Cisco, Geoworks for high-tech product developmentLow investment, high return R&D strategy provides competitive advantage to Nokia who can react faster to changing technologies than any compet

57、itorUse of standard components to enable outsourcing of non-core technologies (e.g., micro processors from Intel, components from Motorola, semi-conductors from AT&T)Similar product design allows Nokia to use the same production line for multiple products and enables them to react quickly to changes

58、 in demand by shifting from one model to another R&DAlliances/partnerships providea large portion of Nokia capabilitiesNokia has developed a strong capability platform in the U.S.; primarily driven by alliances and partnerships.CAPABILITY PLATFORM22NJ-262408.756/001031NdkocHR1BRAND DEVELOPMENT Start

59、ing in 1994, Nokia increased corporate brand awareness through vigorous advertising campaigns.Source:Annual reports; press releases; press clippings; company web site Nokia 6100 Series phone23NJ-262408.756/001031NdkocHR1Nokia kept its advertising consumer friendly and easy to follow, in contrast to

60、their competitors who targeted professionalsNOKIA COMMUNICATION STRATEGYSince the early nineties Nokias value proposition to the consumer has been single-minded on simplicity and ease of using mobile phonesThe proposition of simplicity is further enhanced by the tone of voice and visuals used in the