1、SEC China010821BJ-ToshibaCONFIDENTIALBrown Goods and PC Competitor Analysis:ToshibaSAMSUNG ELECTRONICS CHINA(SEC China)August 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 pri
2、or 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.SEC China010821BJ-Toshiba1OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK1.Background informationLocationRegistered capitalManagementteamEquitystru
3、ctureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership6.Financial performanceFocus onMarketing,advertising and promotionDistribution(channel and sales force)Organization structureOwnership structureSales Profit 2.Strategy 3.Product/market MissionVisionCor
4、porate strategyKey product offeringsMarket positionSEC China010821BJ-Toshiba2BACKGROUND INFORMATION1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership6.Financial performanceFocus
5、 on Marketing,advertising and promotion Distribution(channel and sales force)Organization structureOwnership structureSales Profit 2.Strategy 3.Product/market MissionVisionCorporate strategyKey product offeringsMarket positionSEC China010821BJ-Toshiba3Source:Toshiba website,Lit searchBACKGROUND INFO
6、RMATION TOSHIBAEstablished: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 OfficesAnd Other Facilities:Production facilities:25Branch offices
7、:35Sales offices:23Overseas Plants,Branches Officesand Other Facilities:Offices:10Manufacturing companies:42Subsidiaries&affiliates:72SEC China010821BJ-Toshiba5Source:Company Report,Lit searchTOSHIBAS CORPORATE MANAGEMENT TEAMPresident&CEOTadashi OkamuraCorporate projectCorporate staffCorporate supp
8、ort 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
9、 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 China010821BJ-Toshiba6Source:Company website,Literature SearchHISTORY OF TOSHIBASEC China010821BJ-T
10、oshiba7Source:Literature Search;McKinsey AnalysisTOSHIBAS DEVELOPMENT WENT THROUGH THREE STAGESOrganization structureCorporate strategyProduct Development&Technology1875-1939 Two Japanese electrical equipment manufacturers merged in 1939 to create Toshiba.Technological innovation accounted for the c
11、ompanies 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-PRESENT1939-1978 The company grew rapidly and became a market leader in the electrical and electronic industry.However,t
12、he 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 70s.Numerous leading products in the electrical and electronics areas.Examples includes Japans first vacuum cleaner,firs
13、t 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 Toshibas
14、 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 competitionSEC China010821BJ-Toshiba8Source:Literature Search;McKinsey
15、AnalysisDEVELOPMENT OF DALIAN TOSHIBAS TV BUSINESS IN CHINAKey initiativeKey results1996-1997 Founded 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
16、 the next year.20011998-2000 Focused 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
17、 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 Toshibas Key Global TV Production BaseSEC China010821BJ-Toshiba9TOSHIBA WILL FURTHER INVEST I
18、N IT INDUSTRY IN CHINABackground informationSource:Literature research,interviewTo support Chinas 10th 5-year plan,we will enlarge our investment in IT industry.Toshiba has the world-leading LCD related and semiconductor technology.The amount of each investment will exceed I billion USD.“Apart from
19、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 single countryChief representative of Toshiba in ChinaInvested companies in ChinaTotal investmentChief representativeTotal number of employeesImportance of ChinaFut
20、ure investment plan23RMB 6 billionPintianxinzheng(pinyin)over 10,000Chief representative of Toshiba in ChinaSource:literature research,interviewSEC China010821BJ-Toshiba10TOSHIBA IS THE LEADING PLAYER IN NOTEBOOK MARKET BOTH IN CHINA AND GLOBALLYTimeKey milestones198519901993199419992000Introduced t
21、he first notebook in the worldIntroduced STN notebookIntroduced color TFT notebookIntroduced Pentium-empowered notebookRanked number one in China notebook market for 4 yearsRanked number one in world wide notebook market for 7 yearsEra analysis of Toshiba in NotebookSource:literature research,interv
22、iewSEC China010821BJ-Toshiba11STRATEGY1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership6.Financial performanceFocus on Marketing,advertising and promotion Distribution(channel
23、and sales force)Organization structureOwnership structureSales Profit 2.Strategy 3.Product/marketMissionVisionCorporate strategyMarket positionKey product offeringsSEC China010821BJ-Toshiba12TOSHIBAS MISSION AND VISIONCorporate mission“We,the Toshiba Group companies,based on our total commitment to
24、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 communityCorporate vision“To grow with excellence as the leading-edge,internet-ready enterprise globally by accelerating innovatio
25、n with agility,and to create a 21st century of success hand in hand with our customersSource:Company website,Lit search.SEC China010821BJ-Toshiba13THREE STRATEGIES PROPEL TOSHIBA TO BECOME A GLOBAL HI-TECH LEADER IN THE NEW MELLIMUMToshiba as a leading-edge,internet-ready global leader in hi-techAcc
26、elerate the speed of innovationManagement Innovation(MI2001)is a major initiative being promoted throughout Toshiba Group.It is aimed at advancing creative destruction and competitive superiorityChampion market-centric managementCustomer Relationship Management and Supply Chain Management systems wi
27、ll be deployed to cover company-wide operations.Be internet-readyDigital Manufacturing,a new system,will be introduced throughout the Toshiba GroupAn IT infrastructure for collaborative engineering will be established Source:Lit search,external interviews:Toshiba Annual Report SEC China010821BJ-Tosh
28、iba14ASSESSMENT OF TOSHIBAS CURRENT STRATEGIC POSITION SWOTStrengthsBroad and diversified product portfolioStrong presence in AsiaStrong R&D and manufacturing capabilitiesWeaknessesLess customer focusedWeak brand name in cutting-edge information technologiesUnbalanced global presenceOpportunitiesGlo
29、bal digital convergenceEmerging technologies,i.e.,Internet,3GChina joining WTO opens doors to foreign companiesThreatsBureaucratic management styleIts core semiconductor business is a cyclical commodity businessBehind the curve in key IT developmentsSEC China010821BJ-Toshiba15THERE ARE TWO SUCCESSFU
30、L 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 forceFrom 1993 to 1998 Konka acquired TV manufacturers:North east Du Dan Jian,San Xi,An Suo,Chong Qing factories to bu
31、lk upGrew capacity by 2 million units from 1993 to 1998Through 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 premiumsNot
32、in a strong presence in unit market share,but the top brand when consumers respond for the brand quality 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.
33、PJTV,Digital TV,LCD and PDP which have significantly higher profit margins.Source:Lit search,McKinsey analysis SEC China010821BJ-Toshiba16TOSHIBA SHIFTS ITS STRATEGIC FOCUS TO APPLICATION SOLUTION AND CUSTOMER SERVICE IN CHINA NOTEBOOK MARKETMissionTo be the most responsible IT product application s
34、olution and service providerTimeStrategic focus1996199719981999Product itselfChannel developmentApplicationCustomer service2000VIP certification focusing on core customersChannel development into 2nd tier geographiesApplication solution of mobile office conceptToshiba notebook strategy*in ChinaStrat
35、egy evolvement *Toshiba notebook strategy in China is co-developed by Digital China,Toshibas exclusive notebook chief-distributor in ChinaSource:literature research,interviewSEC China010821BJ-Toshiba17PRODUCT/MARKET1.Background informationLocationRegistered capitalManagementteamEquitystructureStarti
36、ng yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership 6.Financial performanceFocus on Marketing,advertising and promotion Distribution(channel and sales force)Organization structureOwnership structureSales Profit 2.Strategy 3.Product/marketMissionVisionCorporate st
37、rategyKey product offeringsMarket positionSEC China010821BJ-Toshiba18TOSHIBAS 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,
38、518Home Appliances 660Others 473SEC China010821BJ-Toshiba19DALIAN 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
39、 34D8UXC 34D6DC 29D8UXC 29D6DC 29D3XC 25D6XC 21AF6C SEC China010821BJ-Toshiba20DALIAN 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
40、.24.94.23.94.04.63.03.32.22.22.02.413.013.711.210.96.46.3%19992000Others 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 g
41、rew 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 SEC China010821BJ-Toshiba21DALIAN TOSHIBAS MARKET POSITION IN CHINAS PJTV MARKET:NO.1 MARKET SHARE LEADERS
42、ource: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 brightnes
43、sLocal players expected to acquire key PJTV technologies as of 2003As 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 PanasonicSamsungSonyToshiba19
44、992000100%353233327101514615343100%SEC China010821BJ-Toshiba22PJTV PLAYERS STRENGTHS AND WEAKNESSESCompanyStrengths/weaknessesToshibaStrong brand nameAggressive sales and marketingSonyNo.1 brand namePremium market with highest industry profitsSamsungStrong quality in resolution and brightnessSolid p
45、osition in the marketComparable 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 res
46、ulted in low sales volumeWill fill up the technology gap by about 2003 Source:Lit search,McKinsey analysisSEC China010821BJ-Toshiba23TOSHIBA 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,
47、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 researchSEC China010821BJ-Toshiba24TOSHIBA IS STRONG IN EDUCATION,LARGE AND
48、 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),2000SEC China0108
49、21BJ-Toshiba25TOSHIBA 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%=0.110.120.170.73.51.40.10.08Premium(3.5K)2.2Toshibas
50、 market share0.1Sales by customer segmentsPercent of units shipment(M),2000Others DellIBMFounderLegend AcerToshibaSEC China010821BJ-Toshiba26VALUE CHAIN STRATEGY1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain st
