麥肯錫三星戰(zhàn)略6-TOSHIBAppt課件

1、CONFIDENTIALBrown Goods and PC Competitor Analysis: ToshibaSAMSUNG ELECTRONICS CHINA (SEC China)August 20, 2019This 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

2、 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 FRAMEWORK1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of em

3、ployeesEra 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 MissionVisionCorporate strategyKey prod

4、uct offeringsMarket positionBACKGROUND INFORMATION1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising and promotionDistri

5、bution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3. Product/market MissionVisionCorporate strategyKey product offeringsMarket positionSource: Toshiba website, Lit searchBACKGROUND INFORMATION TOSHIBAEstablished:1875 by Hisashige TanakaPresident &

6、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: 35Sales offices: 23Overseas Plants, Branches Officesan

7、d Other Facilities:Offices: 10Manufacturing companies: 42Subsidiaries & affiliates: 72Source: 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

8、% export (Year 2000)Joint Venture PartnersTypeForeign Juristic 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 SharesSource: Company Report, Lit s

9、earchTOSHIBAS CORPORATE MANAGEMENT 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 Comp

10、any 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 A

11、ppliances Company CEO: Makoto NakagawaSource: Company website, Literature SearchHISTORY OF TOSHIBASource: Literature Search; McKinsey AnalysisTOSHIBAS DEVELOPMENT WENT THROUGH THREE STAGESOrganization structureCorporate strategyProduct Development & Technology1875-1939 Two Japanese electrical eq

12、uipment 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- PRESENT1939-1

13、978 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 70s . N

14、umerous 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 world-wide

15、 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 incomeB

16、usiness Building Becoming Industry LeaderMeeting worldwide competitionSource: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 2019. Conducted accurate market for

17、ecast 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 customer service Revenue and profit

18、 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

19、 in PJTV MarketBecoming Toshibas Key Global TV Production BaseTOSHIBA WILL FURTHER INVEST IN 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 an

20、d 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 single countryChief representative of Toshiba in ChinaInvested

21、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, interviewTOSHIBA IS THE LEADING PLAYER IN NOTEBOOK MARKET BOT

22、H IN CHINA AND GLOBALLYTimeKey milestones198519901993199420192000Introduced the 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 fo

23、r 7 yearsEra analysis of Toshiba in NotebookSource: literature research, interviewSTRATEGY1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMa

24、rketing, advertising and promotionDistribution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3. Product /marketMissionVisionCorporate strategyMarket positionKey product offeringsTOSHIBAS MISSION AND VISIONCorporate mission“We, the Toshiba Group companies,

25、 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 communityCorporate vision“To grow with excellence as the leading-edge, internet-ready enterpri

26、se globally by accelerating innovation with agility, and to create a 21st century of success hand in hand with our customersSource: Company website, Lit search.THREE STRATEGIES PROPEL TOSHIBA TO BECOME A GLOBAL HI-TECH LEADER IN THE NEW MELLIMUMToshiba as a leading-edge, internet-ready global leader

27、 in hi-techAccelerate the speed of innovationManagement Innovation (MI2019) 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 Mana

28、gement systems will 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

29、ASSESSMENT 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 presenceOpportunitiesGlob

30、al 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 developmentsTHERE ARE TWO SUCCESSFUL MODELS IN THE CHINA CTV

31、 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 2019 Konka acquired TV manufacturers: North east Du Dan Jian, San Xi, An Suo, Chong Qing factories to bulk upGrew capacity

32、by 2 million units from 1993 to 2019Through economics of scale and aggressive pricing 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 pres

33、ence 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. PJTV, Digita

34、l 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 MARKETMissionTo be the most responsible IT product application solution and service providerTimeSt

35、rategic focus2019201920192019Product itselfChannel developmentApplicationCustomer service2000VIP certification focusing on core customersChannel development into 2nd tier geographiesApplication solution of mobile office conceptToshiba notebook strategy* in ChinaStrategy evolvement * Toshiba notebook

36、 strategy in China is co-developed by Digital China, Toshibas exclusive notebook chief-distributor in ChinaSource: literature research, interviewPRODUCT/MARKET1. Background informationLocationRegistered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4. Value chain st

37、rategy5. Organization and ownership 6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureOwnership structureSales Profit 2. Strategy 3. Product /marketMissionVisionCorporate strategyKey product offeringsMarket positionTOSHIBA

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 473DALIAN TOSHIBAs KEY TV

39、 PRODUCT OFFERINGSColor TVs (inch, model no.)Projection TV Series: 43 6161D9UXC50D9UXC43D9UXC50D8UXC43D8UXC Source: Company website, Lit searchCRT TV Series: 21 2929D2DC29D2XC25D2XC25E3DC321D2NC Flat TV Series: 21 3434D8UXC34D6DC29D8UXC29D6DC29D3XC25D6XC21AF6C DALIAN TOSHIBAS MARKET POSITION IN CHIN

40、AS CONVENTIONAL CRT TV MARKET: NO. 5 MARKET SHARE LEADERMarket share by sales, %Source: GFK, McKinsey Analysis, External interviews: Konka, Sony, Toshiba9.711.79.69.37.47.57.07.37.05.76.65.04.24.94.23.94.04.63.03.32.22.22.02.413.013.711.210.96.46.3%20192000Others 100%100%Key trends Rationale Industr

41、y 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 market share from 65% in 2019 to 67% in 20001.92.0RowaLGPan

42、da Jinxing Skyworth-RGBXoceco Philips Haier Panasonic Hisense Toshiba TCLChanghongKonka Sony DALIAN TOSHIBAS MARKET POSITION IN CHINAS PJTV MARKET: NO. 1 MARKET SHARE LEADERSource: GFK, internal interview, literature search, external interviews: Sony, Panasonic, ToshibaKey trendsRationale Establishe

43、d 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 acquire key PJTV technologies as of 2019As comparison, Changhong alone now controls 20% of

44、 large screen CRTV market, local players likely to gain similar share in PJTV market Market share by salesPercent Local (KonkaChanghong, etc)Other MNCsHitachi PanasonicSamsungSonyToshiba20192000100%353233327101514615343100%PJTV PLAYERS STRENGTHS AND WEAKNESSESCompanyStrengths/weaknessesToshibaStrong

45、 brand nameAggressive sales and marketingSonyNo. 1 brand namePremium market with highest industry profitsSamsungStrong quality in resolution and brightnessSolid position in the marketComparable technology with Japanese counterpartsOther MNCs: Panasonic, Philips, etc.Possess the technology, but yet t

46、o 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 sales volumeWill fill up the technology gap by about 2019 Source: Lit search, McKinsey analysisTOSHIBA HAS A FULL-LI

47、NE 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 4

48、600 (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 GOVERNMENTSource: IDC17.831.423.528.827.422.28.410.98.44.85.5Small office Home 100% =ToshibaMarket average73484Educat

49、ion Government Large businessSmall businessMedium business 3.83.53.7Sales by customer segmentsPercent of units shipment (000s), 2000TOSHIBA 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

50、.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 market share0.1Sales by customer segmentsPercent of units shipment (M), 2000Others DellIBMFounderLegend AcerToshibaVALUE CHAIN STRATEGY1. Background informationLocationRegist

51、ered capitalManagementteamEquitystructureStarting yearNumber of employeesEra analysis4. Value chain strategy5. Organization and ownership 6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureOwnership structureSales Profit 2.

52、 Strategy 3. Product/market MissionVisionCorporate strategyKey product offeringsMarket positionSource: Literature Search, Konka web site, team analysis R&DManufacturingMarketing& SalesDistribution After-Sales ServicesToshiba Digital Media Network Company is responsible for Color TV R&DDa

53、lian 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 retailer

54、s. 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 MediaNetwork Co.Dalian Toshiba TV Co.TOSHIBA CHINA TV BUSINESS HAS A PRODUCT LINE OR

55、IENTED VALUE DELIVERY SYSTEMDALIAN TOSHIBAS TV DISTRIBUTION CHANNELSource: McKinsey Literature Search, external interviews, McKinsey analysisDalian Toshiba TV Co.Manufacturing PlantDalian SubsidiaryBeijing SubsidiaryShanghai SubsidiaryGuangzhou SubsidiaryDistributorsRetailers:Hyper/super-market: 10%

56、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 R&DManufacturingMarketing and brandingSales and distributionAfter-sales serviceToshiba R&DToshiba SHOEM: Renb

57、ao, a Taiwanese OEM playerDigital ChinaDigital China (for Toshiba notebook only)ToshibaDigital ChinaCentralize key accounts across different productsCentralize SI for key accounts (banking, tax)Be in charge of channel develop-ment and managementDigital ChinaMajor responsibilityToshiba SH factoryPart

58、s inventoryAncillary hotlineToshibaToshiba SHOEMToshibaToshiba SHDealersDigital ChinaSource: interviewTOSHIBA HAS POSITIONED CHINA AS A KEY R&D BASE *The other two R&D centers are in the UK and the US respectivelySource:Literature researchThree-layer structure of Toshiba R&DFirst layer f

59、ocusing on technology trends in the next 3-5 yearsSecond layer focusing on multi-media technology and technology trends in the next 2-3 yearsThird layer focusing on product developmentToshiba R&D in ChinaEstablished R&D department in Beijing, April 2019Plan to develop it into Toshiba (China)

60、 R&D center” in October 2019 which will be the third overseas R&D center of ToshibaPlan to have 250 people this year and expand to 500 people in R&D center in 2019R&DTOSHIBA HAS OUTSOURCED THE MAJOR PART OF NOTEBOOK MANU-FACTURING AND ITS DISTRIBUTOR IS CAPABLE OF CUSTOMIZATION IN CONFIGURATION Source:Literature research, interviewManufacturingParties involvedResponsibilities