1、SEC China010821BJ-Toshiba0OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising an
2、d promotionDistribution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3. Product/market MissionVisionCorporate strategyKey product offeringsMarket positionSEC China010821BJ-Toshiba1BACKGROUND INFORMATION1. Background informationLocationRegistered capitalM
3、anagementteamEquitystructureStarting yearNumber of employeesEra 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.
4、 Product/market MissionVisionCorporate strategyKey product offeringsMarket positionSEC China010821BJ-Toshiba2Source: Toshiba website, Lit searchBACKGROUND INFORMATION TOSHIBAEstablished:1875 by Hisashige TanakaPresident & CEO:Tadashi OkamuraTotal Assets:US$51,578 millionShareholders Equity: US$10,05
5、4 millionNumber of employees: 190,000 worldwide(As of September 30, 2000)Domestic Plants, Branches OfficesAnd Other Facilities:Production facilities: 25Branch offices: 35Sales offices: 23Overseas Plants, Branches Officesand Other Facilities:Offices: 10Manufacturing companies: 42Subsidiaries & affili
6、ates: 72SEC China010821BJ-Toshiba3Source: Company website, Lit searchBACKGROUND INFORMATION DALIAN TOSHIBA TELEVISION, LTDLocation:Dalian, Liaoning ProvinceStarting year:2019Registered Capital:US$30 millionUnit Sold: color TV 1 million sets, 50% export (Year 2000)Joint Venture PartnersTypeForeign Ju
7、ristic Persons SharesForeign Juristic Persons SharesToshibaToshiba (China) Co.Dalian Daxian (Group) Co., Ltd.Number of employees: 2,000Products: 21 34 color TV (CRT, Projection, Flat)Domestic Juristic Persons SharesSEC China010821BJ-Toshiba4Source: Company Report, Lit searchTOSHIBAS CORPORATE MANAGE
8、MENT TEAMPresident & CEOTadashi 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
9、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 NakagawaSEC
10、China010821BJ-Toshiba5Source: Company website, Literature SearchHISTORY OF TOSHIBASEC China010821BJ-Toshiba6Source: Literature Search; McKinsey AnalysisTOSHIBAS DEVELOPMENT WENT THROUGH THREE STAGESOrganization structureCorporate strategyProduct Development & Technology1875-1939 Two Japanese electri
11、cal 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- PRESENT
12、1939-1978 The 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 7
13、0s . Numerous leading products in the electrical and electronics areas. Examples includes Japans 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 worl
14、d-wide with annual sales over 5 trillion. IT focus, diversification, innovation and globalization are four key elements of Toshibas corporate strategy. Toshiba is intensively focusing on IT-related business (i.e. telecom and internet), meanwhile, leveraging its legacy businesses to generate stable i
15、ncomeBusiness Building Becoming Industry LeaderMeeting worldwide competitionSEC China010821BJ-Toshiba7Source:Literature Search; McKinsey AnalysisDEVELOPMENT OF DALIAN TOSHIBAS TV BUSINESS IN CHINAKey initiativeKey results2019-2019 Founded as a joint venture in 2019, construction was completed in 201
16、9. Conducted accurate market forecast and implemented just in order inventory management. Inventory turn-over less than two days. Made profit the next year.20192019-2000 Focused on high profit margin PJTV segment, and competed on technology, service and management rather than price. Strengthened cus
17、tomer 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
18、Building Establishing Leadership in PJTV MarketBecoming Toshibas Key Global TV Production BaseSEC China010821BJ-Toshiba8TOSHIBA WILL FURTHER INVEST IN IT INDUSTRY IN CHINABackground informationSource: Literature research, interviewTo support Chinas 10th 5-year plan, we will enlarge our investment in
19、 IT industry. Toshiba has the world-leading LCD related and semiconductor technology. The amount of each investment will exceed I billion USD.“Apart from Japan, Toshiba divides global market into four regions, America, Europe, China and the rest of Asia. China is the only region made up of one singl
20、e countryChief representative of Toshiba in ChinaInvested companies in ChinaTotal investmentChief representativeTotal number of employeesImportance of ChinaFuture investment plan23RMB 6 billionPintianxinzheng (pinyin)over 10,000Chief representative of Toshiba in ChinaSource: literature research, int
21、erviewSEC China010821BJ-Toshiba9TOSHIBA IS THE LEADING PLAYER IN NOTEBOOK MARKET BOTH IN CHINA AND GLOBALLYTimeKey milestones198519901993199420192000Introduced the first notebook in the worldIntroduced STN notebookIntroduced color TFT notebookIntroduced Pentium-empowered notebookRanked number one in
22、 China notebook market for 4 yearsRanked number one in world wide notebook market for 7 yearsEra analysis of Toshiba in NotebookSource: literature research, interviewSEC China010821BJ-Toshiba10STRATEGY1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber
23、 of employeesEra 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 /marketMissionVisionCorporate strategy
24、Market positionKey product offeringsSEC China010821BJ-Toshiba11TOSHIBAS 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 en
25、sure that progress continues within the world communityCorporate 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 customersSource: Company website, Lit search.
26、SEC China010821BJ-Toshiba12THREE 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 innovationManagement Innovation (MI2019) is a major initiative being promoted throughout Toshiba G
27、roup. It is aimed at advancing creative destruction and competitive superiorityChampion market-centric managementCustomer Relationship Management and Supply Chain Management systems will be deployed to cover company-wide operations.Be internet-readyDigital Manufacturing, a new system, will be introd
28、uced throughout the Toshiba GroupAn IT infrastructure for collaborative engineering will be established Source: Lit search, external interviews: Toshiba Annual Report SEC China010821BJ-Toshiba13ASSESSMENT OF TOSHIBAS CURRENT STRATEGIC POSITION SWOTStrengthsBroad and diversified product portfolioStro
29、ng presence in AsiaStrong R&D and manufacturing capabilitiesWeaknessesLess customer focusedWeak brand name in cutting-edge information technologiesUnbalanced global presenceOpportunitiesGlobal digital convergenceEmerging technologies, i.e., Internet, 3GChina joining WTO opens doors to foreign compan
30、iesThreatsBureaucratic management styleIts core semiconductor business is a cyclical commodity businessBehind the curve in key IT developmentsSEC China010821BJ-Toshiba14THERE ARE TWO SUCCESSFUL MODELS IN THE CHINA CTV MARKET, DALIAN TOSHIBA FOLLOWS THE SONY MODELThe Konka ModelCapital intensive, agg
31、ressive growth through economies of scale in manufacturing and in the sales forceFrom 1993 to 2019 Konka acquired TV manufacturers: North east Du Dan Jian, San Xi, An Suo, Chong Qing factories to bulk upGrew capacity by 2 million units from 1993 to 2019Through economics of scale and aggressive prici
32、ng Konka was able to grow market share from 3% to 11% from 2019 to 2000The Sony ModelZero in on the high end, high profit segment of CRT TV market with a strong brand able to command price premiumsNot in a strong presence in unit market share, but the top brand when consumers respond for the brand q
33、uality and reliabilityCorporate 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 searc
34、h, McKinsey analysis SEC China010821BJ-Toshiba15TOSHIBA 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 focus2019201920192019Product itselfChannel devel
35、opmentApplicationCustomer service2000VIP certification focusing on core customersChannel development into 2nd tier geographiesApplication solution of mobile office conceptToshiba notebook strategy* in ChinaStrategy evolvement * Toshiba notebook strategy in China is co-developed by Digital China, Tos
36、hibas exclusive notebook chief-distributor in ChinaSource: literature research, interviewSEC China010821BJ-Toshiba16PRODUCT/MARKET1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4. Value chain strategy5. Organization and own
37、ership 6. Financial performanceFocus on Marketing, advertising and promotion Distribution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3. Product /marketMissionVisionCorporate strategyKey product offeringsMarket positionSEC China010821BJ-Toshiba17TOSHIBA
38、S GLOBAL NET SALES BY BUSINESS SEGMENTSource: Toshiba web site, Lit SearchYea 2000 ( billion)7%10%23%9%23%28%Information & Communications & Industrial Systems 1,858Power Systems 571Electronic Devices & Components 1,477Digital Media 1,518Home Appliances 660Others 473SEC China010821BJ-Toshiba18DALIAN
39、TOSHIBAs 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 SEC Chi
40、na010821BJ-Toshiba19DALIAN TOSHIBAS MARKET POSITION IN CHINAS CONVENTIONAL CRT TV MARKET: NO. 5 MARKET SHARE LEADERMarket share by sales, %Source: GFK, McKinsey Analysis, External interviews: Konka, Sony, Toshiba9.711.79.69.37.47.57.07.37.05.76.65.04.24.94.23.94.04.63.03.32.22.22.02.413.013.711.210.
41、96.46.3%20192000Others 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 2019 grew to 43.7% in 2000 Local players increased
42、market share from 65% in 2019 to 67% in 20001.92.0RowaLGPanda Jinxing Skyworth-RGBXoceco Philips Haier Panasonic Hisense Toshiba TCLChanghongKonka Sony SEC China010821BJ-Toshiba20DALIAN TOSHIBAS MARKET POSITION IN CHINAS PJTV MARKET: NO. 1 MARKET SHARE LEADERSource: GFK, internal interview, literatu
43、re search, external interviews: Sony, Panasonic, ToshibaKey trendsRationale Established MNCs, Toshiba, Sony will continue to dominate market Local players start establishing themselves by 2019High-end producers with superior technology in pixel resolution and brightnessLocal players expected to acqu
44、ire key PJTV technologies as of 2019As comparison, Changhong alone now controls 20% of large screen CRTV market, local players likely to gain similar share in PJTV market Market share by salesPercent Local (KonkaChanghong, etc)Other MNCsHitachi PanasonicSamsungSonyToshiba20192000100%3532333271015146
45、15343100%SEC China010821BJ-Toshiba21PJTV PLAYERS STRENGTHS AND WEAKNESSESCompanyStrengths/weaknessesToshibaStrong brand nameAggressive sales and marketingSonyNo. 1 brand namePremium market with highest industry profitsSamsungStrong quality in resolution and brightnessSolid position in the marketComp
46、arable technology with Japanese counterpartsOther MNCs: Panasonic, Philips, etc.Possess the technology, but yet to establish themselves in marketLocal companies: TCL, Konka, Hinsense, Haier, ChanghongLack the key technologies for PJTV components tubes and screenLow-end brand have resulted in low sal
47、es volumeWill fill up the technology gap by about 2019 Source: Lit search, McKinsey analysisSEC China010821BJ-Toshiba22TOSHIBA 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)Port
48、ege 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 researchSEC China010821BJ-Toshiba23TOSHIBA IS STRONG IN EDUCATION, LA
49、RGE AND MEDIUM BUSINESS, BUT PARTICULARLY WEAK IN GOVERNMENTSource: IDC17.831.423.528.827.422.28.410.98.44.85.5Small office Home 100% =ToshibaMarket average73484Education Government Large businessSmall businessMedium business 3.83.53.7Sales by customer segmentsPercent of units shipment (000s), 2000S
50、EC China010821BJ-Toshiba24TOSHIBA IS GENERALLY A MEDIUM TO HIGH-END PLAYER, PARTICULARLY STRONG IN USD 2.5-3.5K PRICE BRANDSource: IDC48.822.712.110.411.156.513.324.516.110.417.924.212.213.57.19.23.89.813.96.626.620.20.9Low(0-2k)Medium (2-2.5k)High (2.5-3.5k)100% = 0.110.120.170.73.51.40.10.08Premiu
