麦肯锡三星竞争对手分析NOKIA

CONFIDENTIALMobileHandsetCompetitorAnalysis:NokiaSAMSUNGELECTRONICSCHINA(SECChina)August20,2001Thisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotapleterecordofthediscussion.SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第1页!OVERVIEWOFCOMPETITORANALYSISFRAMEWORK1.BackgroundinformationLocationRegistered

capitalManagement

teamEquity

structureStartingyearNumberof

employeesEraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocusonMarketing,

advertisingand

promotionDistribution(channel

andsalesforce)OrganizationstructureOwnershipstructureSalesProfit2.Strategy3.Product/marketMissionVisionCorporatestrategyMarketpositionKeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing1SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第2页!KEYISSUESTOPROBE-NOKIAStrategyProduct/marketValuechainstrategyOrganization&ownershipFinancialperformanceHowdoesNokiapositionitselfnowandin2005?WhatareNokia’sproductandvaluedeliverysystemstrategiesthatdifferentiateitselffromitspetitors?Howdoesitscurrentmarketpositionhelpachieveitsgoal?WhatisNokia’skeyproductofferingsandhowdoesNokiadifferentiateitsproductsfromitspetitors’?WhatcustomersegmentsisNokiatargetingat?InwhichgeographicareasisNokiastrongorweak?HowdoesNokia’sproductdevelopmentmeetcustomerrequirement?HowdoNokia’sdistributionchannelsdifferfromitspetitors’?WhydoesNokialaunchexclusivespecialistshops?HowdoesNokiaprovidecustomerservices?HowmuchdoesNokiainvestinJVsandWOFEsinChina,andwhatarethemaindrivers?HowdoesNokiaorganizetoenabletheJVsandWOFEstoworktogether?HowstrongisNokia’sperformanceandwhatarethemajorcontributors?WhatisNokia’sperformancetrend?2SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第3页!BACKGROUNDINFORMATION1.BackgroundinformationLocationRegistered

capitalManagement

teamEquity

structureStartingyearNumberof

employeesEraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocusonMarketing,

advertisingand

promotionDistribution(channel

andsalesforce)OrganizationstructureOwnershipstructureSalesProfit2.Strategy3.Product/marketMissionVisionCorporatestrategyMarketpositionKeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing3SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第4页!STRATEGY1.BackgroundinformationLocationRegistered

capitalManagement

teamEquity

structureStartingyearNumberof

employeesEraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocusonMarketing,

advertisingand

promotionDistribution(channel

andsalesforce)OrganizationstructureOwnershipstructureSalesProfit2.Strategy3.Product/marketMissionVisionCorporatestrategyMarketpositionKeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing4SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第5页!NOKIAHASCAUGHTUPWITHMOTOROLAASMARKETLEADERSINMOBILEHANDSETSSINCE1999Monthlymarketsharedevelopment(Percentofmarketinunitssold)9899Jan‘00Dec‘00NokiaMotorolaSiemensEricssonSource:IDC,McKinseyAnalysis5SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第6页!AMONGREPURCHASERS,NOKIA’SCHURNRATEISHIGH,BUTATPARWITHMOTOROLAPercent,2000EricssonNokiaAlcatelOthersSiemensBrandboughtbypreviousNokiaownersMotorolaSamsungMotorolaAlcatelOthersSiemensBrandboughtbypreviousMotorolaownersNokiaSamsungEricssonSource:McKinseyanalysis6SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第7页!Nokiahasanarrowproductportfoliofocusingonmobilemunicationproducts,andmobilehandsetisNokia’skeyproductofferingNokiaoffersconsumer-orientedhandsetswithemphasisondesignsandfunctions,targetingmediumandlowendcustomers.ItsmaincustomersegmentsaretheyoungandfashionableNokia’sfashionphonesarerelativelystronginmajorcitiesandthesouthregion;howeverNokiaisrelativelyweakinthefourth-tiercitiesKEYMESSAGES-PRODUCT/MARKET7SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第8页!NOKIAEMPHASIZESONCONSUMER-ORIENTEDDESIGNSANDFUNCTIONSFashionBusinessBasicFunChangeablecoverSub-100gVoice-dialRecordingVibrationTri-bandWAPBuilt-inmodemIR-portChineseinputLi-IonbatterySMSmessagingGamesComposable/downloadableringertone82106210P7689L2000V998++L2000WWWFashionClassicPriceinChina(RMB)26522878236918001435*1452Equivalentfeatures,Nokiamorefun/fashionvs.MotorolamorefunctionsMotorolaofferslowerpricemodelswithsimilarfeatures,tri-bandandWAP * Nov.2000priceKeyDifferences8SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第9页!Tier1Tier2Tier3Tier4NokiaMotorolaOthersNOKIAISRELATIVELYWEAKINTHEIMPORTANT4THTIERCITYMARKETPercentmarketshare,2000EricssonSiemens18%19%23%40%Tiersizeas%oftotal100%=Millionunits

6.77.08.514.8Source:McKinseyAnalysis9SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第10页!VALUECHAINSTRATEGY1.BackgroundinformationLocationRegistered

capitalManagement

teamEquity

structureStartingyearNumberof

employeesEraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocusonMarketing,

advertisingand

promotionDistribution(channel

andsalesforce)OrganizationstructureOwnershipstructureSalesProfit2.Strategy3.Product/marketMissionVisionCorporatestrategyMarketpositionKeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing10SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第11页!NOKIAISSTRONGATMARKETING,SALESANDSERVICE,BUTWEAKATTECHNOLOGYManufac-turingandsupplychainSalesanddistributionMarketing

and

brandingR&DStrengthsLeversforimprovementEstablishedR&Dcenterin98/99inBeijingforChinamarket,with150researchstaffStronginlowenddevelopmentGoodproductqualityanddesignWeakerpositioninhighendsegmentandhighendtechnologyPositioninlowendunderattackScalablelocalproductionOptimizedlogisticsCountry-widedistributionchannelsandstrongchannelmanagementHighretailerspreferenceLowerratingofretailsupportRetailerpreferencenottranslatingintohighermarketshareStrongbrandawarenessandpreferencePromotes“technologybasedonpeople”AwarenessandpreferencelowerthanMotorolaBrandinyoungmarketunderattackLowtechnologyimageServiceHighlyefficientcustomerservicesystemwith250servicestationsandmobileservicestationsforruralareasGoodpre-andaftersalesservice,e.g.“onehourrepair”service11SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第12页!NOKIADISTRIBUTESTHROUGHSIXFIRST-TIERRESELLERSANDDEVELOPSEXCLUSIVESPECIALISTSHOPSNokiaChannelStructureLateentrytotheChinamarketwithlesshistoricoverheadFlatdistributionchannelsDevelopsexclusivespecialistshopsProvidesafter-saleservices

Source:ChinaComputerJournalVendor1st-tierresellersConsumers2nd-tierresellersRetailers/retailchainstores6%3%91%22%33%36%6%33%58%RationalesNokiaemploysPTAC,CellStar,BeijingTelemunicationEquipmentFactory,BrightPoint,ExpressFortune,andTechGloryasits6first-tierresellersNokiarequiresresellerstoreportthepromotionplanandproductorderingplansaquarterinadvance,andsincethedemandforhandsetstendstofluctuateacrosspromotionalprograms,thisinflexiblestrategygenerallylimitsthepotentialgainwhenmarketdemandchangesacrosspromotionsCloseto900retailshopsandcounterscountry-wide,with50%growthfrom1999Formexclusivespecialistshoptoprovideone-stepsolutiontoendusers12SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第13页!Nokiahas7JVand1WOFEinChina,amongwhichNokiaBeijingandNokiaDongguanaremanufacturingmobilehandsets.NokiaBeijinghasannualproductioncapacityof30millionunitsin2001.ThemaindriversforNokiatosetupJVsandWOFEsinChinaincludebuildinglocalalliances,localizingmanufacturingtomeetdomesticmarketdemandandincreaseexports,andtechnologytransferencouragedbytheChinesegovernmentWithanarrowproductportfolio,Nokia’sorganizationisproductfocusedwithcoordinatedsalesandmarketingeffortacrossJVsthatmanufacturethesameproductsKEYMESSAGES-ORGANIZATIONANDOWNERSHIP13SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第14页!NOKIA'sORGANIZATIONISMAINLYPRODUCTFOCUSEDWITHANARROWPRODUCTPORTFOLIOANDCOORDINATEDSALESANDMARKETINGNokiainternationalNokiaBeijingmobilecommuni-cationNokiaDongguanmobilephoneNokia

Fujianmobilecommunic-ationtechnologyNokiaBeijingHangxingtelecomNokiaDongdatelecomtechnologyNokiaZhongxindigitaltechnologyNokiaChongqintelecomMarketingNokiaChinaofficeNokiaChinaofficeSalesServiceManufa-

cturingSalesandServicesManu-

facturingR&DServiceManufa-

cturingSalesandServicesR&DImpleme-tationSalesandServicesManufa-

cturingSalesandServicesNokiaSuzhoutelecomManufa-

cturingSalesandServicesGSMsystemandequipmentMobilehandsetsMobilehandsetsGSM900/1800networkservicesMobileswitchesWirelessapplications,solutionsandservicesDigitalmultimediaterminalsGSMbasestationCellularnetworktransmissionproducts14SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第15页!Nokia’ssalesinChinagrew31%anditsoperatingprofitgrew26%in2000,amongwhich,mobilehandsetscontributedto59%ofthesalesand70%oftheprofit.MobilehandsetplaysanincreasinglyimportantroleinNokia’sproductportfolio,asitrepresents59%ofthesalesin2000from54%in1999.Nokiahassecuredanoperatingmarginof22%inmobilehandsets,thehighestmargininthemobilehandsetindustryinChina,duetohighlyefficientoperationsthatkeepthecostdowntominimum,eventhoughintensivepetitionhasdriventheoperatingmargindownfrom24%in1999.KEYMESSAGES-FINANCIALPERFORMANCE15SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第16页!NOKIAISRELATIVELYALATE-COMERTOCHINA;HOWEVER

ITHASGROWNRAPIDLYTOBECOMEAMARKETLEADERIN

MOBILECOMMUNICATIONBackgroundImplicationLocationBasedatFinland,withofficesinChina,e.g.BeijingChinaisNokia'sstrategiclocationbecauseitisNokia'ssecondlargestmarket,secondonlytoUSInvestmentInvestedmorethanUSD1.7billioninChina BusinessTwomainbusinessunits:NokianetworkandNokiamobileStartingFirstofficeinChinain1985,firstJVinChinain1994Employees60,000staffin130countriesMorethan20officesinChina,7JVs,1WOFEand1R&Dcenterwithover5500staffHistoryStartedbusinessinChinasince1950s1985sawfirstofficeinBeijing,supplyingfixedlinenetworksSuppliedanalogNMT450systemandterminalin1986Suppliedtransmissionsystem,opticalcableandelectriccablesinlater1980sSuppliedanalogETACSsystemandterminalsin1989SuppliedGSMsystemandterminalsin1990sLeaderinmobilemunicationgloballyandinChinaAlthougharelativelylater-ertoChina,hasinvestedheavilyinitsChinesebusinessFocusedproductlineswithNokianetworkofferingmobile,broadbandandIPnetworkinfra-structure,andNokiamobileofferingmobilehandsetsSource:NokiaPressRelease16SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第17页!NOKIAPOSITIONSITSELFASALEADINGPRODUCTANDSYSTEMSUPPLIERINTHEFASTGROWINGMOBILECOMMUNICATIONINDUSTRYVisionToleadmobilemunicationthrough

theintegrationofmobility

withinternetandtheinnovationofnewservicemodelsProductValuedeliverysystemStrategyFocusesonmobilemunicationproductsandaimstobeatotalsolutionproviderinmobilemunicationRegularlyintroducesconsumer-orientedproductswithemphasisondesignsandfunctionsBuildsstronglocalalliancethroughJVswithChinesepartnersandR&DcenterswithChineseuniversitiesBuildsexclusivespecialistshopstobringone-stepsolutionstoendusersBuildsfixedandmobileservicestationswithwidegeographiccoverageincludingruralareasSource:NokiapressRelease17SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第18页!UNLIKEITSCOMPETITORS,NOKIA’SMARKETSHAREISTHESAMEAMONGSTNEWANDREPURCHASEBUYERSOthersNokiaEricssonSiemensMotorolaRepurchaseBuyersNewBuyersTotalmarketPercentofunitssold,20004Q25%75%%ofMarket100%Definition:Newbuyer:neverboughtmobilephonebeforeRepurchasebuyer:boughtmobilephonebeforeSource:IDC,McKinseyanalysis18SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第19页!PRODUCT/MARKET1.BackgroundinformationLocationRegistered

capitalManagement

teamEquity

structureStartingyearNumberof

employeesEraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocusonMarketing,

advertisingand

promotionDistribution(channel

andsalesforce)OrganizationstructureOwnershipstructureSalesProfit2.Strategy3.Product/marketMissionVisionCorporatestrategyMarketpositionKeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing19SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第20页!MOBILEHANDSETISNOKIA'sBIGGESTPRODUCTOFFERINGANDITSESSENTIALPARTOFTOTALSOLUTIONSINMOBILECOMMUNICATIONNokiamobilehandsetsNokiaproductofferingsNokianetworkProductsNowandfutureNokia3310foryoungpeopleNokia8210forfashionchaserNokia6210WAPforbusinessprofessionalNokia7110WAPwithfullChineseinterfaceNokia9210aspersonnelmunicatorNokia8310,6310forGPRSandWAPMobilenetworkBroadbandnetworkIPnetworkLargestmobilehandsetsupplierintheworldwithaboveaveragegrowthinsalesandmorethan30%globalmarketshareViewsmobilehandsetasadigitalconvergencepointformultimediaservicesSupportsbluetoothbetweenmobilehandsetandPCinNokia6310formobileprofessionalDevelopWCDMAhandsetswithDoCoMoDevelopshomenetproductssuchasmultimediaterminalsinNokiaZhongxinProvidesmultimediaservicenetworksolutionsforoperatorsandISPenteringthemobilemunicationfieldsNokianetworkcoversmanycitiesandareasinChinaincludingBeijing,Shanghai,HongKongandTaiwanetc.Aimstobeatotalsolutionproviderformobilemunication20SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第21页!WITHINCHINA,NOKIA'sFASHIONPHONESPERFORMBETTERINSOUTHCHINAANDLARGECITIESNorthregionEastregionSouthregionChinaaverageBeijingShanghaiShenzhenGuangzhouMarketsharePercent,2000Source:McKinseyAnalysis21SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第22页! Source: RetailAudit,McKinseyanalysisANDTHISWEAKNESSIN4THTIERCITIESSPANSMOSTPROVINCESInnerMongoliaHunanYunnanAnhuiGuangdongFujianZhejiangHeijongjiangJilinHenanJiangxiHebeiShanxiLiaoningSichuanShandongJiangsuShanxiHubeiGansuGuizhouPercentmarketshare,NokiaMarketsharePercentProvinceTier1/2/3cityTier4city22SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第23页!Nokiaisnotregardedasatechnologyleader,asparedwithMotorola;however,itspendsagreatamountofeffortinunderstandingcustomerrequirementsandtailorsitsproducttomeettheserequirements.NokiaemploysPTAC,CellStar,BeijingTelemunicationEquipmentFactory,BrightPoint,ExpressFortune,andTechGloryasthefirst-tierresellerstodistributehandsetsthroughauthorizedstoresandcounters.Thedistributionchannelsarerelativelyflat.Whileitsretailshopsaregrowingrapidlytoapproximately900aroundthecountry,Nokiaalsodevelopsexclusivespecialistshopsinordertoprovide“one-step”solutionstoendusersNokiaimplementsahighlyefficientcustomerservicesystemwith250servicestationsandmobileservicestationsforruralareas.Itprovidesgoodpre-andaftersalesserviceKEYMESSAGES-VALUECHAINSTRATEGY23SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第24页!….onNokia……onMotorolaNOKIAHASREPUTATIONGAPASTECHNOLOGYLEADER,ANDTARGETDIFFERENTCUSTOMERSEGMENTSFROMMOTOROLANokiahas

goodproduct

designsNokiaphones

areforfemaleor

youngerpeopleNokiaissecondto

upgradeproductsMotorolaproductsaremoreformalMotorolaalways

introducesnew

technologytothe

marketfirstLoyaluser

iswhite-collar

worker….ontechnologyleadershipandinnovation….ondesign…ontypicalloyalusers24SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第25页!ORGANIZATIONANDOWNERSHIP1.BackgroundinformationLocationRegistered

capitalManagement

teamEquity

structureStartingyearNumberof

employeesEraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocusonMarketing,

advertisingand

promotionDistribution(channel

andsalesforce)OrganizationstructureOwnershipstructureSalesProfit2.Strategy3.Product/marketMissionVisionCorporatestrategyMarketpositionKeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing25SAMSUNG010605BJ-kickoff2麦肯锡三星竞争对手分析NOKIA共29页，您现在浏览的是第26页!NOKIAHAS7JVsAND1WOFEINCHINA,AMONGWHICH2JVsAREDEVOTEDTOMOBILEHANDSETSMaindriversBuildssuccessfulalliancewith

Chinesepa