【正文】 CONFIDENTIAL Mobile Handset Competitor Analysis: Siemens SAMSUNG ELECTRONICS CHINA (SEC China) August 20, 2023 This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client anization without prior written approval from McKinsey Company. This material was used by McKinsey Company during an oral presentation。 it is not a plete record of the discussion. SAMSUNG010605BJkickoff2 OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK 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 ? Key customers ? Value proposition ? Geographic focus ? Pricing 2 SAMSUNG010605BJkickoff2 KEY ISSUES TO PROBE SIEMENS Strategy Product/market Value chain strategy Organization ownership Financial performance ? What does Siemens aim to be in 2023 in mobile munication? ?How are Siemens?s product and value delivery system strategies different from its petitors?? ?What will be Siemens?s future products and which segments of the market will it target at? ? In which segment of the market is Siemens strong or weak? ? What is the key success factors for Siemens to pick up market share quickly since 1999? ?How does Siemens?s distribution channel differ from its petitors?? ? How capable is Siemens in RD, manufacturing, sales and marketing? ? With a broad product portfolio, how does Siemens anize or reanize itself? ? How does Siemens perform and is its performance expected to improve further? 3 SAMSUNG010605BJkickoff2 BACKGROUND INFORMATION 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 ? Key customers ? Value proposition ? Geographic focus ? Pricing 4 SAMSUNG010605BJkickoff2 CHINA HAS DEVELOPED INTO A MAJOR PILLAR FOR SIEMENS BUSINESS IN ASIA PACIFIC Location ? Based at Germany ? 50+ JVs, 28 offices in China ? Shanghai is the largest Siemens location outside Germany Investment ? Invested USD billion in China Business ? All business sectors of Siemens including information and munication, automation and control, power, transportation and household appliance, etc. Starting ? Entered China39。s telemunication in 1985 ? Information and munication business started 1991 Employees ? 30,000 staff in information and munication mobile globally ? 25,000 employees for all business sectors in china History ? 1982 Siemens Beijing office opened ? 1985 entered China39。s telemunication market ? 1990 established JV Beijing International Switching System ? 1994 Siemens China founded in Beijing ? 1998 formed business segment Information and Communication ? 2023 joined forces with CATT and Huavei for next generation mobile technology. Founded TDSCDMA international forum with Datang, CATT, Huawei, Motorola, Nortel, China mobile, and Uni Implication ? An early entrant to China39。s telemunication market ? Broad product portfolio representing all business sectors of Siemens worldwide Source: Siemens press release 5 SAMSUNG010605BJkickoff2 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 ? Key customers ? Value proposition ? Geographic focus ? Pricing 6 SAMSUNG010605BJkickoff2 SIEMENS AIMS TO BE NUMBER 2 IN MOBILE COMMUNICATION MARKET IN CHINA Product ? Focus on stylish new models with suitable pricing targeting mid to low end of the market ? Invest in future products, ., TDSCDMA handsets and wireless home work devices, etc. St