麦肯锡三星战略3西门子

CONFIDENTIALMobileHandsetCompetitorAnalysis:SiemensSAMSUNGELECTRONICSCHINA(SECChina)August20,2001Thisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotapleterecordofthediscussion.SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30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麦肯锡三星战略3西门子共30页，您现在浏览的是第2页!KEYISSUESTOPROBE-SIEMENSStrategyProduct/marketValuechainstrategyOrganization&ownershipFinancialperformanceWhatdoesSiemensaimtobein2005inmobilemunication?HowareSiemens’sproductandvaluedeliverysystemstrategiesdifferentfromitspetitors’?WhatwillbeSiemens’sfutureproductsandwhichsegmentsofthemarketwillittargetat?InwhichsegmentofthemarketisSiemensstrongorweak?WhatisthekeysuccessfactorsforSiemenstopickupmarketsharequicklysince1999?HowdoesSiemens’sdistributionchanneldifferfromitspetitors’?HowcapableisSiemensinR&D,manufacturing,salesandmarketing?Withabroadproductportfolio,howdoesSiemensorganizeorreorganizeitself?HowdoesSiemensperformandisitsperformanceexpectedtoimprovefurther?2SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第3页!CHINAHASDEVELOPEDINTOAMAJORPILLARFORSIEMENSBUSINESSINASIAPACIFICLocationBasedatGermany50+JVs,28officesinChinaShanghaiisthelargestSiemenslocationoutsideGermanyInvestmentInvestedUSD0.44billioninChinaBusinessAllbusinesssectorsofSiemensincludinginformation

andmunication,automationandcontrol,power,

transportationandhouseholdappliance,etc.StartingEnteredChina'stelemunicationin1985Informationandmunicationbusinessstarted1991Employees

30,000staffininformationandmunicationmobileglobally25,000employeesforallbusinesssectorsinchinaHistory1982SiemensBeijingofficeopened1985enteredChina'stelemunicationmarket1990establishedJVBeijingInternationalSwitchingSystem1994SiemensChinafoundedinBeijing1998formedbusinesssegment-InformationandCommunication2000joinedforceswithCATTandHuaveifornextgenerationmobiletechnology.FoundedTD-SCDMAinternationalforumwithDatang,CATT,Huawei,Motorola,Nortel,Chinamobile,andUniImplicationAnearlyentranttoChina'stelemunicationmarketBroadproductportfoliorepresenting

allbusinesssectorsof

SiemensworldwideSource:Siemenspressrelease3SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第4页!SIEMENSAIMSTOBENUMBER2INMOBILECOMMUNICATIONMARKETINCHINAProductFocusonstylishnewmodelswithsuitablepricingtargetingmidtolowendofthemarketInvestinfutureproducts,e.g.,TD-SCDMAhandsetsandwirelesshomenetworkdevices,etc.StrategyValuedeliverysystemEstablishR&DcentersformobilemunicationinBeijingandShanghaiMobilehandsetproductioncapacitybeingraisedto14millioninShanghai,agrowthof40%since2000IntensivemarketingonnewproductswithmostpetitivepricingCarefullyselectexclusivechannelpartnerPTACtomaintainuniformpricelevelnationwidetoensurehealthysalesHelpsresellerssetupservicecenterstohandlerepairandmaintenanceVisionTobenumber2intheAsianmobilemunicationmarket(withoutJapanandKorea)4SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第5页!SIEMENSHASOVERTAKENERICSSONTOBENO.3INMOBILEHANDSETBYBOTHREVENUEANDSALESVOLUMEOthersSiemensEricssonMotorola199920012000SamsungNokiaBreakdownofsalesbybrandeachyearPercentSource: GfK,IDC,McKinseyanalysisOthersSiemensEricssonMotorola199920012000SamsungNokiaBreakdownofunitssoldbybrandeachyearPercent5SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第6页!Siemensoffersapeterangeofmobilemunicationsolutionsincludingdevices,infrastructureandapplications.Siemens’smobilehandsetsewithgoodqualityandpetitivepricingSiemenstargetsthemidtolowendofthemobilehandsetmarket.MostofitsmodelsareinthepricerangefrombelowRMB1000toRMB2200Siemenshasdevotedgreatattentiontotheimportant4th-tiercitiesandwestChina,henceitsmarketshareinthesedevelopingareasarerelativelyhigherthanitsshareinthemoredevelopedareas.KEYMESSAGES-PRODUCT/MARKET6SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第7页!SIEMENSMODELSHAVETHEMOSTCOMPETITIVEPRICINGSource: McKinseyAnalysisProductpositioningDec2000A6188(1.4%)8850(1.8%)V8088*(3.9%)S800C(1.2%)A100(0.8%)T28(3.6%)8210(4.6%)7.8%21.9%18.2%52.2%Business/professionalPersonal*WAPphoneProductpositioningJune20009110S800C(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%)368C(3.1%)3508(1.6%)338C(0.6%)T2688(4.8%)11.4%17.4%25.3%45.9%HighHigh-

mediumMedium-

lowLowBusiness/professionalPersonal*WAPphoneV998++(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%)V2088(1.0%)3210(9.6%)5110(5.9%)RetailpriceHighHigh-

mediumMedium-

lowLowRetailpriceRMB3,500RMB2,200RMB1,600368C(2.3%)V2188(1.3%)RMB3,500RMB2,200RMB1,600Red-NokiaWhite-MotorolaBlue-EricssonBrown-SiemensGreen-Samsung8250(0.0%)6210(0.6%)7SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第8页!Tier1Tier2Tier3Tier4NokiaMotorolaOthersSIEMENSALSOADDRESSESTHEIMPORTANT4THTIERCITYMARKETPercentmarketshare,2000EricssonSiemens18%19%23%40%Tiersizeas%oftotal100%=Millionunits

6.77.08.514.8Source:McKinseyAnalysis8SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第9页!VALUECHAINSTRATEGY1.BackgroundinformationLocationRegistered

capitalManagement

teamEquity

structureStartingyearNumberof

employeesEraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocusonMarketing,

advertisingand

promotionDistribution(channel

andsalesforce)OrganizationstructureOwnershipstructureSalesProfit2.Strategy3.Product/marketMissionVisionCorporatestrategyMarketpositionKeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing9SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第10页!SIEMENSVALUEDELIVERYSYSTEMHASEVOLVEDOVERTHEYEARSFrom...(1997)To...(2000)NoR&DfacilityinChinaNoproductlocalizationProductioncapacityinShanghaiPudong(150,000)60%ofproductsforChinesemarketproducedinHongKongBrightpointhandlingover90%ofdistributionMarketsharelessthan5%ProductProductionDistributionMarketingHighmitmenttoTD-SCDMA–testsacrossChinain2001AsianoffensivecampaignwithUS1.5billioninvestmentinR&Dandmarketinguntil2003ProductioncapacityinShanghaihasbeenraisedto14millionunitsfrom10millionunitsin2000Usesdifferentdistributor(PTAC),butstillonlyonenationwideMarketshare12%asaresultofintensivemarketingofnewmodelswithpetitivepricingAimstoincreasemarketshareto15%Source:Interviews,McKinseyanalysis10SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第11页!SIEMENSVALUEDELIVERYSYSTEMISORGANIZEDAROUNDPRODUCTLINESWITHMULTIPLECUSTOMERINTERFACESValuedeliverysystemCustomerinterfacesICMobileandICNetworkmunicatewiththesameteleoperatorsseparately,with“multiplefaces”

Source:McKinseyanalysis11SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第12页!ORGANIZATIONANDOWNERSHIP1.BackgroundinformationLocationRegistered

capitalManagement

teamEquity

structureStartingyearNumberof

employeesEraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocusonMarketing,

advertisingand

promotionDistribution(channel

andsalesforce)OrganizationstructureOwnershipstructureSalesProfit2.Strategy3.Product/marketMissionVisionCorporatestrategyMarketpositionKeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing12SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第13页!WITHALARGEPRODUCTPORTFOLIO,SIEMENSTENDSTOBEMOREPRODUCTFOCUSEDWITHCLEARLINESOFP&LRESPONSIBILITYOrganizationstructureP&LresponsibilityICMmanagerforinformationandmunicationmobileICNmanagerforinformationandmunicationnetworkDrivingfactorsInordertomeetthetrendoftechnologicalmerginginInformationandCommunicationfield,thenewSiemensbusinessgroup-InformationandCommunicationmobile(ICM)starteditsoperationinApril1,2000.ICMhandlestheentiremobiletelephonebusiness,withregardtobothmunicationsterminals(mobileandwiredphones,mobileorganizersanddigitalproducts)andmobilephonenetworks(productsandservicesformobilemunicationandintelligentnetworks).

Source:Siemenspressrelease,McKinseyanalysis13SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第14页!SIEMENSHASMADELARGECOMMITMENTSINTELECOMMUNICATIONINCHINAJVpanyYearofcontractPlannedinvestment(mDM)Siemensshare(%)Chinesepartner(share)BusinessscopeBeijingInternationalSwitchingSystemsCo.,Ltd.SiemensFibreOpticCablesLtdChengduSiemensShanghaiMobileCommunicationLtd.GuangzhouNanfangTransmissionSystemsLtd.SiemensTelePowerSupplyLtd.ShanghaiXinDeTeleInternationalVenturesCo.Ltd.SiemensBusinessCommunicationSystemsLtd.ShanghaiSiemensShanghaiCommunicationTerminalsLtd.SiemensOpticalFiberCablesLtd.Chengdu90989393949395949054.5501535454050516050BeijingWireCommunicationPlant25BeijingTelephoneAuthorities25BeijingComprehensiveInvestmentCo.10ChengduFibreOpticCableFactory(CDC)ThetownofShanghai;TheMinistryforpostandTelemunicationsGuangzhouNanfangPhotoelectricalTelemunicationsEquipmentFactoryShanghaiAijianCompanyLtd.21ShanghaiXinguangTelemunicationsplant28ShanghaiVideoandAudioElectronicsCo.,Ltd.40ChengduTelemunicationsCableCo.,Ltd50EWSDmanufacturinganddistributionFibreopticcableGSMmobileradionetworksandterminalsTransmissionequipment(e.g.PDH)PowersupplyfortelesystemsTechnologyTrainingHi300TelephoneandTelemunicationterminalsLoosetubeopticalfibercable

Source:Siemenspressrelease14SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第15页!SiemensInformationandCommunication(IC)reportsanotherayearofexcellentbusinessperformanceglobally.In2000,ICmobileincludingthemobilehandsetbusinessachievedEUR9billioninsalesworld-widewithanexpectedCAGRof69%in1999-2001.TheEBITmarginofICmobilehasalsoimprovedfrom6%in1999to8%in2000SiemensachievedarevenueofEUR2.4billioninChinaoverallsectors,towhichInformationandCommunicationmadeasignificantcontributionKEYMESSAGES-FINANCIALPERFORMANCE15SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第16页!BACKGROUNDINFORMATION1.BackgroundinformationLocationRegistered

capitalManagement

teamEquity

structureStartingyearNumberof

employeesEraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocusonMarketing,

advertisingand

promotionDistribution(channel

andsalesforce)OrganizationstructureOwnershipstructureSalesProfit2.Strategy3.Product/marketMissionVisionCorporatestrategyMarketpositionKeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing16SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第17页!STRATEGY1.BackgroundinformationLocationRegistered

capitalManagement

teamEquity

structureStartingyearNumberof

employeesEraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocusonMarketing,

advertisingand

promotionDistribution(channel

andsalesforce)OrganizationstructureOwnershipstructureSalesProfit2.Strategy3.Product/marketMissionVisionCorporatestrategyMarketpositionKeyproductofferingsKeycustomersValuepropositionGeographicfocusPricing17SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第18页!SIEMENSISRISINGSTEADILYINMOBILEHANDSETSSINCE1999Monthlymarketsharedevelopment(Percentofmarketinunitssold)9899Jan‘00Dec‘00NokiaMotorolaSiemensEricssonSource:RetailAuditSource:IDC,McKinseyAnalysis18SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30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麦肯锡三星战略3西门子共30页，您现在浏览的是第20页!SIEMENSOFFERSACOMPLETERANGEOFMOBILESOLUTIONSINCLUDINGDEVICES,INFRASTRUCTUREANDAPPLICATIONSProductsNowandfutureInformationandmunicationmobileSiemensproductofferingsInformationandmunicationnetworksMobilenetworkWirelesshomenetwork&officenetworkMobilehandsetC2588(small,lightsmart)S2588(braintruster)3508(small,light,sexy)3518i(toughenough)3568i(smartthinking)BroadbandnetworkIPnetworkFixed-linenetworkTransmissionnetworkOfficenetworkCablenetworkTakeTD-SCDMAmobilehandsetstoserialproductionlevelby2003Offerthepleterangeofmobilesolutionsincludingmobiledevices,infrastructureandapplications,e.g.,wirelesshomenetwork,CompleterangeofGSM,GPRSandUMTSmobilenetworks,unifiedmessagingandmobilepaymentOverallstrategyof

"auniverseofone",pursuing

IPdrivenvoiceanddata

municationandcustomer-

orientedend-to-end

solutionandservicesSource:Siemenspressrelease20SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第21页!SIEMENSTARGETSMIDTOLOWENDOFTHEMARKETHigh

(>RMB3,500)Source: Sino-MR(Jan2001–Feb2001),CCIDBreakdownofunitsoldbybrandforeachpricepoint

PercentHigh-mid

(RMB2,500-3,500)Mid

(RMB2,000-2,500)Mid-Low

(RMB1,500-2,000)Low(<RMB1,500)OthersSiemensEricssonMotorolaSamsungNokia9%15%7%Unitsas%oftotal26%43%721SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第22页!SIEMENSISRELATIVELYSTRONGINCENTRAL,EASTANDWESTMarketsharebybrandspergeographicarea,2001PercentMarketsharebygeographicareaPercentEastSiemensEricssonSamsungOthersNokiaMotorolaWestNorthNorth-eastSouth3013151311Central18Source:GfK,McKinseyAnalysis22SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第23页!Siemens’svaluedeliverysystemstrategyhasevolvedsince1999.Ithasinvested$1.5billionintheAsianPacificareaasitsAsianoffensivecampaignSiemenshasspentagreateffortinlocalizingR&Dandmanufacturing.IthasbuiltR&DcentersinBeijingandShanghaiandhasraisedthemobilehandsetproductioncapacityinShanghaito14millionunitsin2001.ItisaleaderinTD-SCDMA3GtechnologyinChinaSiemenshasachievedamarketshareof12%insalesvolume,afterintensivemarketingofnewmodelswithpetitivepricing,andaimstoincreaseitsmarketshareto15%Siemensdistributesthroughexclusive1st-tiernationalresellerPTACand2nd-tierprovincialresellers.Auniformpricelevelinthemarketismaintainednationwidetoensurehealthysales.KEYMESSAGES-VALUECHAINSTRATEGY23SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第24页!SIEMENSINVESTSTREMENDOUSEFFORTINEVERYPART

OFTHEVALUECHAINR&DManufacturingandsupplychainMarketingandbrandingSalesanddistributionServiceStrengthsR&DcentersformobilemunicationinBeijingandShanghaiwithmorethan500engineersplannedLeadinternationalforuminTD-SCDMAFrequentintroductionofnewmodelsContinuouslyincreaselocalproductioncapacityandcapabilityIntensivemarketingonnewmodelswithpetitivepricingHealthysalesthroughexclusivechannelpartnerPTACCapableafter-salesservicewith100servicestationsnationwideLeversforimprovementLackscapabilityinW-CDMAandCDMA2000Fullydependentonsinglenationaldistributor

Source:Worldputerjournal,McKinseyanalysis24SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第25页!SIEMENSDISTRIBUTESTHROUGHEXCLUSIVENATIONALRESELLERPTAC

Source:IDCRationalesSiemenspartnerswithPTAC,takingadvantageoftheirstreamlinedandefficientdistributionchannels.PTACisselectedastheexclusivenationaldistributorduetoresourcesandimage.AuniformpricelevelinthemarketismaintainednationwidetoensurehealthysalesSiemensChannelStructureRelyonboth1st-tiernationalresellerPTACand2nd-tierprovincialresellersDevotemuchattentiontolow-tiercitymarketVendor1st-tierresellersConsumers2nd-tierresellersRetailers/retailchainstores12%9%79%67%12%67%12%21%25SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第26页!Withalargeproductportfoliocoveringinformationandmunicationandhomeappliancesetc.Siemens’sorganizationisproductfocusedwithclearlinesofP&LresponsibilitiesSiemenshasover50JVsandWOFEsinChinawithlargemitmentsintelemunication.SiemensShanghaiisdevotedtomobilemunicationincludingmobilehandsetsSiemens’sjointventuresaremanagedundertheirownglobalBU,andSiemensChina,theholdingpany,coordinatesandprovidessharedservicesfortheglobalBUactivitiesinChinaSiemensisstartingtocentralizesalesandmarketingtobetterhandlesolutionsales,andthegoalistoconsolidateallmarketingandsalesfunctionsunderSiemensdirectlyKEYMESSAGES-ORGANIZATIONANDOWNERSHIP26SAMSUNG010605BJ-kickoff2麦肯锡三星战略3西门子共30页，您现在浏览的是第27页!SIEMENSHASOVER50JVsO