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961997 ? Founded as a joint venture in 1996, construction was pleted in 1997. ? Conducted accurate market forecast and implemented just in order inventory management. ? Inventory turnover less than two days. ? Made profit the next year. 20xx 199820xx ? Focused on high profit margin PJTV segment, and peted 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 165。300 million to expand capacity from one million units to million units ? exported 800,000 units to Japan. Business Building Establishing Leadership in PJTV Market Being Toshiba’s Key Global TV Production Base SEC China010821BJToshiba 9 TOSHIBA WILL FURTHER INVEST IN IT INDUSTRY IN CHINA Background information Source: Literature research, interview To support China39。s 10th 5year 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 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 country Chief representative of Toshiba in China ? Invested panies in China ? Total investment ? Chief representative ? Total number of employees ? Importance of China ? Future investment plan 23 RMB 6 billion Pintianxinzheng (pinyin) over 10,000 Chief representative of Toshiba in China Source: literature research, interview SEC China010821BJToshiba 10 TOSHIBA IS THE LEADING PLAYER IN NOTEBOOK MARKET BOTH IN CHINA AND GLOBALLY Time Key milestones 1985 1990 1993 1994 1999 20xx Introduced the first notebook in the world Introduced STN notebook Introduced color TFT notebook Introduced Pentiumempowered notebook Ranked number one in China notebook market for 4 years Ranked number one in world wide notebook market for 7 years Era analysis of Toshiba in Notebook Source: literature research, interview SEC China010821BJToshiba 11 STRATEGY 1. Background information ? Location ? Registered capital ? Management team ? Equity structure ? Starting year ? Number of employees ? Era analysis 4. Value chain strategy 5. Organization and ownership 6. Financial performance ? Focus on – Marketing, advertising and promotion – Distribution (channel and sales force) ? Organization structure ? Ownership structure ? Sales ? Profit 2. Strategy 3. Product /market ? Mission ? Vision ? Corporate strategy ? Market position ? Key product offerings SEC China010821BJToshiba 12 TOSHIBA’S MISSION AND VISION Corporate mission “We, the Toshiba Group panies, based on our total mitment 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 munity Corporate vision “To grow with excellence as the leadingedge, interready 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. SEC China010821BJToshiba 13 THREE STRATEGIES PROPEL TOSHIBA TO BECOME A GLOBAL HITECH LEADER IN THE NEW MELLIMUM Toshiba as a leadingedge, interready global leader in hitech Accelerate the speed of innovation ? Management Innovation (MI20xx) is a major initiative being promoted throughout Toshiba Group. It is aimed at advancing creative destruction and petitive superiority Champion marketcentric management ? Customer Relationship Management and Supply Chain Management systems will be deployed to cover panywide operations. Be interready ? 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 SEC China010821BJToshiba 14 ASSESSMENT OF TOSHIBA39。S CURRENT STRATEGIC POSITION – SWOT Strengths ? Broad and diversified product portfolio ? Strong presence in Asia ? Strong Ramp。D and manufacturing capabilities Weaknesses ? Less customer focused ? Weak brand name in cuttingedge information technologies ? Unbalanced global presence Opportunities ? Global digital convergence ? Emerging technologies, ., Inter, 3G ? China joining WTO opens doors to foreign panies Threats ? Bureaucratic management style ? Its core semiconductor business is a cyclical modity business ? Behind the curve in key IT developments SEC China010821BJToshiba 15 THERE ARE TWO SUCCESSFUL MODELS IN THE CHINA CTV MARKET, DALIAN TOSHIBA FOLLOWS THE SONY MODEL The Konka Model ? Capital 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 20xx The Sony Model ? Zero in on the high end, high profit segment of CRT TV market with a strong brand able to mand price premiums ? Not in a strong presence in unit market share, but t