麦肯锡为三星做的标杆企业分析

nullBrown Goods and PC Competitor Analysis: ToshibaBrown Goods and PC Competitor Analysis: ToshibaSAMSUNG ELECTRONICS CHINA (SEC China)CONFIDENTIALAugust 20, 2001This 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; it is not a complete record of the discussion.OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORKOVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK1. Background informationLocation Registered capital Management team Equity structureStarting year Number of employees Era analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus on Marketing, advertising and promotion Distribution (channel and sales force)Organization structure Ownership structureSales Profit 2. Strategy 3. Product/market Mission Vision Corporate strategyKey product offerings Market positionBACKGROUND INFORMATIONBACKGROUND INFORMATION1. Background informationLocation Registered capital Management team Equity structureStarting year Number of employees Era analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus on Marketing, advertising and promotion Distribution (channel and sales force)Organization structure Ownership structureSales Profit 2. Strategy 3. Product/market Mission Vision Corporate strategyKey product offerings Market positionBACKGROUND INFORMATION – TOSHIBABACKGROUND INFORMATION – TOSHIBASource: Toshiba website, Lit searchEstablished:1875 by Hisashige TanakaPresident & CEO:Tadashi OkamuraTotal Assets:US$51,578 millionShareholders’ Equity: US$10,054 millionNumber of employees: 190,000 worldwide(As of September 30, 2000)Domestic Plants, Branches Offices And Other Facilities:Production facilities: 25 Branch offices: 35 Sales offices: 23Overseas Plants, Branches Offices and Other Facilities:Offices: 10 Manufacturing companies: 42 Subsidiaries & affiliates: 72BACKGROUND INFORMATION – DALIAN TOSHIBA TELEVISION, LTDBACKGROUND INFORMATION – DALIAN TOSHIBA TELEVISION, LTDSource: Company website, Lit searchLocation:Dalian, Liaoning ProvinceStarting year:1996Registered Capital:US$30 millionUnit Sold: color TV 1 million sets, 50% export (Year 2000)Joint Venture PartnersTypeForeign Juristic Person's SharesForeign Juristic Person's SharesToshibaToshiba (China) Co.Dalian Daxian (Group) Co., Ltd.Number of employees: 2,000Products: 21’ – 34’ color TV (CRT, Projection, Flat)Domestic Juristic Person's SharesTOSHIBA’S CORPORATE MANAGEMENT TEAMTOSHIBA’S CORPORATE MANAGEMENT TEAMSource: Company Report, Lit searchPresident & CEO Tadashi OkamuraCorporate projectCorporate staffCorporate support services iValue Creation Company CEO: Tsutomu Kawada e-Solutions Company CEO: Hiroo Okuhara Social Infrastructure Systems Company CEO: Tsuyoshi Kimura Digital Media Network Company CEO: Atsutoshi Nishida Mobile Communications Company CEO: Tetsuya Mizoguchi Power Systems & Services Company CEO: Toshiyuki Oshima Semiconductor Company CEO: Takeshi Nakagawa Display Devices & Components Company CEO: Eisaburo Hamano Medical Systems Company CEO: Masamichi Katsurada Home Appliances Company CEO: Makoto NakagawaHISTORY OF TOSHIBAHISTORY OF TOSHIBA Source: Company website, Literature SearchTOSHIBA’S DEVELOPMENT WENT THROUGH THREE STAGESTOSHIBA’S DEVELOPMENT WENT THROUGH THREE STAGES Source: Literature Search; McKinsey AnalysisOrganization structure Corporate strategy Product Development & Technology 1875-1939Two Japanese electrical equipment manufacturers merged in 1939 to create Toshiba. Technological innovation accounted for the companies’ successes. One of the founders was the so-called Edison of Japan. Main products included transformers, electric motors, light bulbs, radio receivers, and cathode-ray tubes. 1978- PRESENT1939-1978The company grew rapidly and became a market leader in the electrical and electronic industry. However, the organization became more bureaucratic. The company continued to be innovative in the early years, producing many firsts in the industry. However, It lost its innovator image in the 70’s . Numerous leading products in the electrical and electronics areas. Examples includes Japan’s first vacuum cleaner, first fluorescent lamp, first radar, etc.Toshiba shifted direction by investing heavily in IT segment. The organization became increasingly global, employing 190,000 employees world-wide with annual sales over ¥ 5 trillion. IT focus, diversification, innovation and globalization are four key elements of Toshiba’s corporate strategy. Toshiba is intensively focusing on IT-related business (i.e. telecom and internet), meanwhile, leveraging its legacy businesses to generate stable incomeBusiness Building Becoming Industry LeaderMeeting worldwide competitionDEVELOPMENT OF DALIAN TOSHIBA’S TV BUSINESS IN CHINADEVELOPMENT OF DALIAN TOSHIBA’S TV BUSINESS IN CHINA Source: Literature Search; McKinsey AnalysisKey initiative Key results 1996-1997Founded as a joint venture in 1996, construction was completed in 1997. Conducted accurate market forecast and implemented just in order inventory management. Inventory turn-over less than two days. Made profit the next year. 20011998-2000Focused on high profit margin PJTV segment, and competed on technology, service and management rather than price. Strengthened customer service Revenue and profit grew 50% annually. Became the No. 1 market share leader in PJTV segment. Toshiba decided to relocate its digital TV production to Dalian and invested ¥300 million to expand capacity from one million units to 1.5 million units exported 800,000 units to Japan. Business Building Establishing Leadership in PJTV MarketBecoming Toshiba’s Key Global TV Production BaseTOSHIBA WILL FURTHER INVEST IN IT INDUSTRY IN CHINATOSHIBA WILL FURTHER INVEST IN IT INDUSTRY IN CHINABackground information Source: Literature research, interview Source: literature research, interviewTOSHIBA IS THE LEADING PLAYER IN NOTEBOOK MARKET BOTH IN CHINA AND GLOBALLYTOSHIBA IS THE LEADING PLAYER IN NOTEBOOK MARKET BOTH IN CHINA AND GLOBALLYTimeKey milestones1985 1990 1993 1994 1999 2000Introduced the first notebook in the world Introduced STN notebook Introduced color TFT notebook Introduced Pentium-empowered notebook Ranked number one in China notebook market for 4 years Ranked number one in world wide notebook market for 7 yearsEra analysis of Toshiba in Notebook Source: literature research, interviewSTRATEGYSTRATEGY1. Background informationLocation Registered capital Management team Equity structureStarting year Number of employees Era analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus on Marketing, advertising and promotion Distribution (channel and sales force)Organization structure Ownership structureSales Profit 2. Strategy 3. Product /marketMission Vision Corporate strategy Market positionKey product offeringsTOSHIBA’S MISSION AND VISIONTOSHIBA’S MISSION AND VISIONCorporate mission “We, the Toshiba Group companies, based on our total commitment to people and to the future, are determined to help create a higher quality of life for all people, and to do our part to help ensure that progress continues within the world community"Corporate vision “To grow with excellence as the leading-edge, internet-ready enterprise globally by accelerating innovation with agility, and to create a 21st century of success hand in hand with our customers" Source: Company website, Lit search.THREE STRATEGIES PROPEL TOSHIBA TO BECOME A GLOBAL HI-TECH LEADER IN THE NEW MELLIMUMTHREE STRATEGIES PROPEL TOSHIBA TO BECOME A GLOBAL HI-TECH LEADER IN THE NEW MELLIMUMToshiba as a leading-edge, internet-ready global leader in hi-techAccelerate the speed of innovation Management Innovation (MI2001) is a major initiative being promoted throughout Toshiba Group. It is aimed at advancing creative destruction and competitive superiorityChampion market-centric management Customer Relationship Management and Supply Chain Management systems will be deployed to cover company-wide operations.Be internet-ready Digital Manufacturing, a new system, will be introduced throughout the Toshiba Group An IT infrastructure for collaborative engineering will be established Source: Lit search, external interviews: Toshiba Annual Report ASSESSMENT OF TOSHIBA'S CURRENT STRATEGIC POSITION – SWOTASSESSMENT OF TOSHIBA'S CURRENT STRATEGIC POSITION – SWOTStrengthsBroad and diversified product portfolio Strong presence in Asia Strong R&D and manufacturing capabilitiesWeaknessesLess customer focused Weak brand name in cutting-edge information technologies Unbalanced global presenceOpportunitiesGlobal digital convergence Emerging technologies, i.e., Internet, 3G China joining WTO opens doors to foreign companiesThreatsBureaucratic management style Its core semiconductor business is a cyclical commodity business Behind the curve in key IT developmentsTHERE ARE TWO SUCCESSFUL MODELS IN THE CHINA CTV MARKET, DALIAN TOSHIBA FOLLOWS THE SONY MODELTHERE ARE TWO SUCCESSFUL MODELS IN THE CHINA CTV MARKET, DALIAN TOSHIBA FOLLOWS THE SONY MODELThe Konka ModelCapital intensive, aggressive growth through economies of scale in manufacturing and in the sales force From 1993 to 1998 Konka acquired TV manufacturers: North east Du Dan Jian, San Xi, An Suo, Chong Qing factories to bulk up Grew capacity by 2 million units from 1993 to 1998 Through economics of scale and aggressive pricing Konka was able to grow market share from 3% to 11% from 1995 to 2000The Sony ModelZero in on the high end, high profit segment of CRT TV market with a strong brand able to command price premiums Not in a strong presence in unit market share, but the top brand when consumers respond for the brand quality and reliability Corporate philosophy unwilling to sacrifice profits for larger market share (vast different from Chinese players) Future target focused on higher end, cutting edge technology TVs e.g. PJTV, Digital TV, LCD and PDP which have significantly higher profit margins. Source: Lit search, McKinsey analysis TOSHIBA SHIFTS ITS STRATEGIC FOCUS TO APPLICATION SOLUTION AND CUSTOMER SERVICE IN CHINA NOTEBOOK MARKETTOSHIBA SHIFTS ITS STRATEGIC FOCUS TO APPLICATION SOLUTION AND CUSTOMER SERVICE IN CHINA NOTEBOOK MARKETMissionTo be the most responsible IT product application solution and service providerTimeStrategic focus1996 1997 1998 1999Product itself Channel development Application Customer service2000VIP certification focusing on core customers Channel development into 2nd tier geographies Application solution of "mobile office" conceptToshiba notebook strategy* in ChinaStrategy evolvement * Toshiba notebook strategy in China is co-developed by Digital China, Toshiba’s exclusive notebook chief-distributor in China Source: literature research, interviewPRODUCT/MARKETPRODUCT/MARKET1. Background informationLocation Registered capital Management team Equity structureStarting year Number of employees Era analysis4. Value chain strategy5. Organization and ownership 6. Financial performanceFocus on Marketing, advertising and promotion Distribution (channel and sales force)Organization structure Ownership structureSales Profit 2. Strategy 3. Product /marketMission Vision Corporate strategyKey product offerings Market position TOSHIBA’S GLOBAL NET SALES BY BUSINESS SEGMENTTOSHIBA’S GLOBAL NET SALES BY BUSINESS SEGMENT Source: Toshiba web site, Lit SearchYea 2000 (¥ billion)Information & Communications & Industrial Systems ¥1,858Power Systems ¥571Electronic Devices & Components ¥1,477Digital Media ¥1,518Home Appliances ¥660Others ¥473DALIAN TOSHIBA's KEY TV PRODUCT OFFERINGSDALIAN TOSHIBA's KEY TV PRODUCT OFFERINGSColor TVs (inch, model no.)Projection TV Series: 43’ – 61’ 61D9UXC 50D9UXC 43D9UXC 50D8UXC 43D8UXC Source: Company website, Lit searchCRT TV Series: 21’ – 29’ 29D2DC 29D2XC 25D2XC 25E3DC3 21D2NC Flat TV Series: 21’ – 34’ 34D8UXC 34D6DC 29D8UXC 29D6DC 29D3XC 25D6XC 21AF6C DALIAN TOSHIBA’S MARKET POSITION IN CHINA’S CONVENTIONAL CRT TV MARKET: NO. 5 MARKET SHARE LEADERDALIAN TOSHIBA’S MARKET POSITION IN CHINA’S CONVENTIONAL CRT TV MARKET: NO. 5 MARKET SHARE LEADERMarket share by sales, % Source: GFK, McKinsey Analysis, External interviews: Konka, Sony, Toshiba19992000Others 100%100%Key trends Rationale Industry undergoes further consolidation Foreign players lose market share to local playersTop five players in the market –Changhong, TCl, Konka, Hisense, Skyworth,controlled 41.6% of the market in 1999 grew to 43.7% in 2000 Local players increased market share from 65% in 1999 to ~67% in 20001.92.0RowaLGPanda Jinxing Skyworth-RGBXoceco Philips Haier Panasonic Hisense Toshiba TCLChanghongKonka Sony DALIAN TOSHIBA’S MARKET POSITION IN CHINA’S PJTV MARKET: NO. 1 MARKET SHARE LEADERDALIAN TOSHIBA’S MARKET POSITION IN CHINA’S PJTV MARKET: NO. 1 MARKET SHARE LEADER Source: GFK, internal interview, literature search, external interviews: Sony, Panasonic, ToshibaKey trendsRationale Established MNCs, Toshiba, Sony will continue to dominate market Local players start establishing themselves by 2005High-end producers with superior technology in pixel resolution and brightness Local players expected to acquire key PJTV technologies as of 2003 As comparison, Changhong alone now controls ~ 20% of large screen CRTV market, local players likely to gain similar share in PJTV market Market share by sales Percent Local (Konka Changhong, etc)Other MNCsHitachi PanasonicSamsungSonyToshiba19992000100%100%PJTV PLAYERS’ STRENGTHS AND WEAKNESSESPJTV PLAYERS’ STRENGTHS AND WEAKNESSESCompanyStrengths/weaknessesToshibaStrong brand name Aggressive sales and marketingSonyNo. 1 brand name Premium market with highest industry profitsSamsungStrong quality in resolution and brightness Solid position in the market Comparable technology with Japanese counterpartsOther MNCs: Panasonic, Philips, etc.Possess the technology, but yet to establish themselves in market Local companies: TCL, Konka, Hinsense, Haier, ChanghongLack the key technologies for PJTV components – tubes and screen Low-end brand have resulted in low sales volume Will fill up the technology gap by about 2003 Source: Lit search, McKinsey analysisTOSHIBA HAS A FULL-LINE PROUCT OFFERING IN NOTEBOOK, COVERING LOW-END TO PREMIUM SEGMENTTOSHIBA HAS A FULL-LINE PROUCT OFFERING IN NOTEBOOK, COVERING LOW-END TO PREMIUM SEGMENT Source: Literature researchKey product offeringsSatellite Series 2800 (13.3", 14.1", 15.0") Portege Series (7220CT, 3480CT, 3490CT) Tecra Series (8100H, 8000J, 8200) Satellite 1750 (13.3") New satellite 2800 (13.3", 14.1",15.0") Satellite Pro 4600 (13.3", 14.1", 15.0") New Satellite Pro 4600 (14.1") Satellite 3000 (13.3") Source: literature researchTOSHIBA IS STRONG IN EDUCATION, LARGE AND MEDIUM BUSINESS, BUT PARTICULARLY WEAK IN GOVERNMENTTOSHIBA IS STRONG IN EDUCATION, LARGE AND MEDIUM BUSINESS, BUT PARTICULARLY WEAK IN GOVERNMENTSource: IDCSmall office Home 100% =ToshibaMarket average73484Education Government Large businessSmall businessMedium business 3.83.53.7Sales by customer segments Percent of units shipment (000s), 2000TOSHIBA IS GENERALLY A MEDIUM TO HIGH-END PLAYER, PARTICULARLY STRONG IN USD 2.5-3.5K PRICE BRANDTOSHIBA IS GENERALLY A MEDIUM TO HIGH-END PLAYER, PARTICULARLY STRONG IN USD 2.5-3.5K PRICE BRAND Source: IDC0.9Low (0-2k)Medium (2-2.5k)High (2.5-3.5k)100% = 0.110.120.170.73.51.40.10.08Premium (>3.5K)2.2Toshiba's market share0.1Sales by customer segments Percent of units shipment (M), 2000Others DellIBMFounderLegend AcerToshibaVALUE CHAIN STRATEGYVALUE CHAIN STRATEGY1. Background informationLocation Registered capital Management team Equity structureStarting year Number of employees Era analysis4. Value chain strategy5. Organization and ownership 6. Financial performanceFocus on Marketing, advertising and promotion Distribution (channel and sales force)Organization structure Ownership structureSales Profit 2. Strategy 3. Product/market Mission Vision Corporate strategyKey product offerings Market positionTOSHIBA CHINA TV BUSINESS HAS A PRODUCT LINE ORIENTED VALUE DELIVERY SYSTEM TOSHIBA CHINA TV BUSINESS HAS A PRODUCT LINE ORIENTED VALUE DELIVERY SYSTEM Source: Literature Search, Konka web site, team analysisToshiba Digital Media Network Company is responsible for Color TV R&DDalian Toshiba is responsible for TV production. 30% parts come from ChinaDalian Toshiba and its 4 subsidiaries in Dalian, Beijing, Shanghai and Guangzhou are responsible for marketing and salesDalian Toshiba primarily uses sales forces in its four subsidiaries to sell TV products directly to retailers. It also uses distributors in certain regions such as Chongqing.Toshiba (China) helped set up the after-sales service network, and Dalian Toshiba is running the network and responsible for PNL.Digital mediaDigital Media Network Co.Dalian Toshiba TV Co.DALIAN TOSHIBA’S TV DISTRIBUTION CHANNELDALIAN TOSHIBA’S TV DISTRIBUTION CHANNEL Source: McKinsey Literature Search, external interviews, McKinsey analysisDalian Toshiba TV Co. Manufacturing PlantDalian Subsidiary Beijing Subsidiary Shanghai Subsidiary Guangzhou SubsidiaryDistributorsRetailers: Hyper/super-market: 10% Designated Stores: 25% Dept. Stores: 30% Specialty Stores: 35% Consumers Subsidiary Sales Force70%30%TOSHIBA ADOPTS THE NATIONAL CHIEF-DISTRIBUTOR PRACTICE IN NOTEBOOK BUSNIESS IN CHINA TOSHIBA ADOPTS THE NATIONAL CHIEF-DISTRIBUTOR PRACTICE IN NOTEBOOK BUSNIESS IN CHINA Toshiba R&DToshiba SH OEM: Renbao, a Taiwanese OEM player Digital ChinaDigital China (for Toshiba notebook only) ToshibaDigital China Centralize key accounts across different products Centralize SI for key accounts (banking, tax) Be in charge of channel develop- ment and managementDigital China Major responsibility Toshiba SH factory Parts' inventory Ancillary hotlineToshibaToshiba SHOEMToshibaToshiba SHDealersDigital China Source: interviewTOSHIBA HAS POSITIONED CHINA AS A KEY R&D BASETOSHIBA HAS POSITIONED CHINA AS A KEY R&D BASE * The other two R&D centers are in the UK and the US respectively Source: Literature researchThree-layer structure of Toshiba R&D First layer focusing on technology trends in the next 3-5 years Second layer focusing on multi-media technology and technology trends in the next 2-3 years Third layer focusing on product development Toshiba R&D in China Established "R&D department" in Beijing, April 2001 Plan to develop it into "Toshiba (China) R&D center” in October 2001 which will be the third overseas R&D center of Toshiba Plan to have 250 people this year and expand to 500 people in R&D center in 2005R&DTOSHIBA HAS OUTSOURCED THE MAJOR PART OF NOTEBOOK MANU-FACTURING AND ITS DISTRIBUTOR IS CAPABLE OF CUSTOMIZATION IN CONFIGURATION TOSHIBA HAS OUTSOURCED THE MAJOR PART OF NOTEBOOK MANU-FACTURING AND ITS DISTRIBUTOR IS CAPABLE OF CUSTOMIZATION IN CONFIGURATION Source: Literature research, interviewManufacturingParties involvedResponsibilitiesToshiba SHAssembling production to cover total volume sold in China Assembling production for expertOEM (Renbao)Major part of notebook manufacturingUNDER STRONG COST PRESSURE, DIGITAL CHINA AND TOSHIBA ARE PUSHING TOWARDS MORE FLATTENED CHANNEL STRUCTUREUNDER STRONG COST PRESSURE, DIGITAL CHINA AND TOSHIBA ARE PUSHING TOWARDS MORE FLATTENED CHANNEL STRUCTURE Source: CCID, interviewChannel StructureChannel Cost Percent of retail priceDigital ChinaCore distributors (~ 50)DirectSpecialty shops (over 100)Industry distributorsEnd usersSecond tier dealers (hundreds)Before 19971997-19981999-2001Future expecta- tion of man