1、2023-1-27麦肯锡三星战略咨询报告麦肯锡三星战略咨询报麦肯锡三星战略咨询报告告麦肯锡三星战略咨询报告OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership6.Financial performanceFocus onMa
2、rketing,advertising and promotionDistribution(channel and sales force)Organization structureOwnership structureSales Profit 2.Strategy 3.Product/market MissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing麦肯锡三星战略咨询报告KEY ISSUES TO PRO
3、BE-ERICSSONStrategyProduct/marketValue chainstrategyOrganization&ownershipFinancialperformanceWhat will be Ericssons strategic focus for the next 5 years?How will Ericsson secure its leading position in mobile infrastructure?What products will Ericsson be focusing on?Which market segment will Ericss
4、on be interested in?Will Ericsson become a niche market player in mobile handset?How does Ericsson secure its leadership in technology?How does Ericsson improve its local production capability?How are Ericssons mobile handsets distributed?How does Ericsson organize its JVs and WOFEs?What functions d
5、oes Ericsson China centralize?How good is Ericssons recent financial performance?How will Ericsson improve its performance in the future?麦肯锡三星战略咨询报告BACKGROUND INFORMATION1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value
6、 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/market MissionVisionCorporate strategyMarket positionKey product offeringsKey
7、 customersValue propositionGeographic focusPricing麦肯锡三星战略咨询报告ERICSSON IS A TECHNOLOGY LEADER IN MOBILE COMMUNICATION AND A MARKET LEADER IN MOBILE INFRASTRUCTUREImplicationLeader in mobile system technology including GSM,GPRS and 3GEmphasize on mobile infrastructure and claim to be the only total so
8、lution provider for a full range of 2G and 3G standardsLocationBased at Sweden,with 24 offices in ChinaSince 1998,China has been Ericssons largest market in the worldInvestmentInvested more than USD 0.6 billion in ChinaBusinessFour main business units:Mobile infrastructure,mobile handset,data networ
9、k and circuit switching/packet switching multi-service networksStartingFirst office in China in 1985,first JV in China in 1992Employees 100,000 staff in 140 countriesOver 4,000 employees in China24 offices,10 JVs and 4 WOFEsHistory1985:First Ericsson office in Beijing1987:First mobile network launch
10、ed Qinhuang island1989:Set up offices in Guangzhou and Shanghai1992:Started JVs in China for mobile infrastructure and handset1994:Established Ericsson China Limited1995:China became Ericssons third largest market in the world1996:China became Ericssons s second largest market in the world1997:Estab
11、lished R&D center in Shanghai and Ericsson China institute1998:China became Ericssons largest market in the world,established Chongqing Ericsson technology1999:Established Ericsson consulting in Shanghai and mobile multi-media lab in Zhonguancun2000:First to complete WCDMA test in ChinaBackground麦肯锡
12、三星战略咨询报告STRATEGY1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4.Value chain strategy5.Organization and ownership6.Financial performanceFocus on Marketing,advertising and promotion Distribution(channel and sales force)Organi
13、zation structureOwnership structureSales Profit 2.Strategy 3.Product/marketMissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing麦肯锡三星战略咨询报告ERICSSON AIMS TO SECURE ITS LEADERSHIP POSITION IN NETWORK EQUIPMENT AND MAY BECOME A NICHE PL
14、AYER IN MOBILE HANDSET ProductMaintain foothold in the low end mobile handset market through JV with Nanjing PandaDevelop 3G technology(WCDMA)for mobile communication by collaborating with MII and DoCoMo,and apply leading technology to productsSecure its leadership position in network equipment rath
15、er than becoming the best-selling brand for mobile handsetsValue delivery systemR&D localization through collaboration with Chinese government and universitiesFurther expand local production capacityCentralize marketing functions under Ericsson ChinaDistribute though 5 first-tier resellers including
16、 PTAC and PTICBuilds consumer website for Ericsson handset usersVisionTo innovate in mobile network and internet convergence and to lead in the era of mobile internetStrategySource:Ericsson press release,Dresdner Kleinwort,McKinsey analysis麦肯锡三星战略咨询报告ERICSSONs MARKET SHARE IS DECREASING OVER THE PAS
17、T FEW YEARSMonthly market share development(Percent of market in units sold)9899Jan 00Dec 00NokiaMotorolaSiemens EricssonSource:Retail AuditSource:IDC,McKinsey Analysis麦肯锡三星战略咨询报告ERICSSON IS NOW NUMBER FOUR IN SALES VOLUME AND NUMBER FIVE IN REVENUE IN THE MOBILE HANDSET MARKETOthers SiemensEricsson
18、Motorola199920012000Samsung NokiaBreakdown of sales by brand each yearPercentSource:GfK,IDC,McKinsey analysisOthers SiemensEricssonMotorola199920012000Samsung NokiaBreakdown of units sold by brand each yearPercent麦肯锡三星战略咨询报告PRODUCT/MARKET1.Background informationLocationRegistered capitalManagementte
19、amEquitystructureStarting 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/marketMi
20、ssionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing麦肯锡三星战略咨询报告Ericsson claims to be the only total solution provider in mobile communication who offers a full range of 2G and 3G standards.To secure its leadership position in mobile i
21、nfrastructure,Ericsson may become a niche market player in mobile handsetsEricsson is a technology leader in mobile communication,which is reflected in its early releases of WAP,GPRS and bluetooth handsets and 3G networksEricsson gives up the high-end market in mobile handset to focus on low-end.It
22、is relatively strong in 1st tier cities,and the North and East ChinaKEY MESSAGES-PRODUCT/MARKET麦肯锡三星战略咨询报告ERICSSON OFFERS TOTAL SOLUTIONS IN MOBILE COMMUNICATION WITH MORE EMPHASIS ON MOBILE INFRASTRUCTUREProductsNow and futureEricsson mobile handsetEricsson product offeringsEricsson networkFirst WA
23、P handset in the world(MC 218)R320sc WAP handset with Chinese interfaceA2638sc for young and successfulT29sc for mobile professionalR380sc for business eliteT20sc,A2618sc for young and fashionableGSM and UMTS mobile infrastructure includingGSM,DCS1800,CDMA and WCDMAData network,e.g.AXD301 ATM switch
24、 AXI540 IP router,and IP phoneFirst GPRS handset and first bluetooth handset(T36)First to provide GSM 1800/1900 networks simultaneouslyLeader in WAPLeader in GPRSTotal solutions in 3G based on WCDMA,CDMA 2000 and EDGESource:Ericsson press release麦肯锡三星战略咨询报告ERICSSON MAINTAINS FOOTHOLD IN THE LOW END
25、MARKETHigh(RMB 3,500)Source:Sino-MR(Jan 2001 Feb 2001),CCIDBreakdown of unit sold by brand for each price pointPercentHigh-mid(RMB 2,500-3,500)Mid(RMB2,000-2,500)Mid-Low(RMB1,500-2,000)Low(RMB1,500)Others SiemensEricssonMotorolaSamsung Nokia9%15%7%Units as%of total26%43%7麦肯锡三星战略咨询报告Tier 1Tier 2Tier
26、3Tier 4NokiaMotorolaOthersERICSSON MATCHES SIEMENS IN THE 1st TIER CITY MARKETPercent market share,2000EricssonSiemens18%19%23%40%Tier size as%of total100%=Million units 6.77.08.514.8Source:McKinsey Analysis麦肯锡三星战略咨询报告ERICSSON IS RELATIVELY STRONG IN NORTH AND EASTMarket share by brands per geograph
27、ic area,2001PercentMarket share by geographic areaPercentEastSiemensEricssonSamsungOthersNokiaMotorolaWestNorthNorth-eastSouth3013151311Central18Source:GfK,McKinsey Analysis麦肯锡三星战略咨询报告VALUE CHAIN STRATEGY1.Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumb
28、er 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/market MissionVisionCorporate strategyMark
29、et positionKey product offeringsKey customersValue propositionGeographic focusPricing麦肯锡三星战略咨询报告For core products such as mobile or fixed line infrastructure,Ericsson has centralized the sales forces to provide“one face”to customers;for smaller products such as mobile handsets,Ericsson sells through
30、 JVs and distributorsEricsson uses PTAC,PTIC,Stellar,508,and the United First as its 5 first-tier resellers.Insufficient support provided by resellers limit the ability of its dealer and channels to provide pre-and after-sales support to customers,which greatly afftect Ericssons position in the Chin
31、a marketKEY MESSAGES-VALUE CHAIN STRATEGY麦肯锡三星战略咨询报告ERICSSON PRESENTS ONE FACE TO CUSTOMERS BY CENTRALIZING CORE PRODUCT SALES THROUGH ITS OWN SALES FORCER&DManufacturingMarketingSalesServiceNetworkMobile infra-structureShanghaiR&D centreNanjing EricssonBeijing Ericsson Telecom SystemEricsson ChinaE
32、ricsson ChinaDalian EricssonGuangdongTerminalMobilehandsetBeijing Ericsson Mobile TelecomShanghai EricssonEricsson ChinaDistributors/dealersRationaleEricssons route to market is based on product characteristicsCore products are sold through the Ericsson sales force Smaller products are sold through
33、JVs and distributorsElectronic compo-nentsWired-lineDistributors/dealersSource:Ericsson press release,interviews,McKinsey analysisChongqing Ericsson TechnologyNanjiing Ericsson Mobile TerminalHeilongjiangBeijing Ericsson麦肯锡三星战略咨询报告ERICSSON IS STRONG AT TECHNOLOGY AND MARKETING,BUT RELATIVELY WEAK AT
34、 MANUFACTURING AND SERVICE IN MOBILE HANDSETTechnology leader in GSM,GPRS and 3GFirst to release WAP,GPRS,bluetooth handsetsExpanded local manufacturing with 2JVs devoted to mobile handsetsCentralized purchasing and supplyR&DManufac-turing and supply chainMarketing and brandingSales and distribution
35、ServiceCentralized marketing functions to promote strong and consistent brand imageGood relationship with resellers such as PTAC and PTICStrengthsLack of big-hitting new modelsProduct development not meeting market demand in ChinaManufacturing with uncompetitive cost structureLocal production capaci
36、ty insufficient compared with Motorola,Nokia and SiemensInsufficient support provided by the resellers limit the ability of its dealers and channels to provide pre-and after-sales supportLevels for improve-mentSource:Ericsson press release,IDC,McKinsey analysis麦肯锡三星战略咨询报告ERICSSON DISTRIBUTES THROUGH
37、 FIVE FIRST-TIER RESELLERSSource:IDCRationalesEricsson uses PTAC,PTIC,Stellar,508,and the United First as its 5 first-tier resellers.Since there is a huge price gap between official and parallel imports,the unit sales of Ericsson handset in China through official channels was affected resulting in d
38、ownward pressure on handset prices.Insufficient support provided by resellers limit the ability of its dealer and channels to provide pre-and after-sales support to customers,which greatly afftect Ericssons position in the China marketEricsson Channel StructureBeing a major mobile network equipment
39、vendor,Ericsson maintains good relationship with government bodies and distributes through PTAC,PTIC and local telecom operatorsVendorPTAC,PTIC,etc.ConsumersLocal telecom operatorsRetailers/retail chain stores麦肯锡三星战略咨询报告ORGANIZATION AND OWNERSHIP1.Background informationLocationRegistered capitalMana
40、gementteamEquitystructureStarting 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.Product/m
41、arketMissionVisionCorporate strategyMarket positionKey product offeringsKey customersValue propositionGeographic focusPricing麦肯锡三星战略咨询报告Ericsson has 10 JVs and 4 WOFEs in China,among which Beijing Ericsson Mobile and Nanjing Ericsson Mobile Terminal are devoted to mobile handsets.Ericsson believes t
42、hat localization is key.Ericsson uses joint venture partners to enter the market,and established holding company in 1994 to better manage local operationsEricsson uses its own sales force to sell core products and delivers coordination to compete in“solution”salesKEY MESSAGES-ORGANIZATION AND OWNERS
43、HIP麦肯锡三星战略咨询报告ServiceERICSSON CHINA HAS CENTRALIZED MANY COMMON FUNCTIONS FROM JVsEricsson China Ltd.Nanjing EricssonNanjing Ericsson mobile terminalBeijing Ericsson mobileGuangdong EricssonChongqing Ericsson technologyMarketing and brandingPurchasing and supplyManufac-turingSalesManufac-turingSales
44、R&DManufac-turingSalesServiceMarke-tingSalesServiceMobile infrastructureMobile handsetMobile handsetMobile base stationMobile infrastructureMobile infrastructureSource:Ericsson press release麦肯锡三星战略咨询报告ERICSSON HAS 10 JVs AND 4 WOFEs IN CHINA,AMONG WHICH 2 JVs ARE DEVOTED TO MOBILE HANDSETS Source:Er
45、icsson press releases;literature search;interviewsEricsson China Ltd.(Holding Co.)1994Esta-blished yearBeijing EricssonBeijingEricsson MobileShang-hai EricssonHelong-jiang EricssonNanjing Ericsson Mobile TerminalGuang-dong EricssonNanjing EricssonWuhan Yangtze EricssonChong-qing Ericsson TelecomChon
46、g-qing Ericsson Tech.Ericsson R&D center ShanghaiEricsson Consult-ing ShanghaiDalian Ericsson1994199519971995199219971998199819971999Product offeringPBX MD 110Mobile handsetMobile base stationElec-tronic compo-nentsTele-com equip-ment serviceMobile hand-setMobile infra-structure servicesGSM900/1800
47、AXE 10SDH trans-mission systemsDigital micro-waveMobile system market-ing sales and serviceSoft-ware applica-tionConsul-ting service for wire-less and fixed line opera-torsTech-nical service55%with Beijing Cable Telecom49%with PTIC,Beijing Telecom Com-ponents,Beijing Telecom Equipment,Yun Shing80%wi
48、th Shanghai Simtek56%with GD PTA Guang-dong Mach-inery Import and Export55%with Nanjing Radio Factory,HK Yun Shing 47.5%with WRILongxing Invest-ment Chang-qing South-west Wireless telecom100%100%100%65%with Nanjing Panda麦肯锡三星战略咨询报告ERICSSON USES JV PARTNERS TO ENTER THE MARKET AND ITS OWN SALES FORCE
49、 TO SELL CORE PRODUCTSInfluence Ericsson corporate focused on top to top relationsJoint venture partners help to gain local customer accessPartnership structure&roleEricsson China(10 joint ventures and 4 WFOEs)Holding company aims to coordinate all activities in ChinaWFOE for software R&D in ChinaLi
50、mited technology transfer to China heavily import dependentService joint ventures are cost centersRoute to marketEricssons sales force(based in the holding company)sells core products(switching and transmission)Joint venture sales force sells small and standalone productsWireless products sold throu
