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【正文】 D TARGET DIFFERENT CUSTOMER SEGMENTS FROM MOTOROLA Nokia has good product designs Nokia phones are for female or younger people Nokia is second to upgrade products Motorola products are more formal Motorola always introduces new technology to the market first Loyal user is whitecollar worker ….on technology leadership and innovation ….on design … on typical loyal users SAMSUNG010605BJkickoff2 21 NOKIA DISTRIBUTES THROUGH SIX FIRSTTIER RESELLERS AND DEVELOPS EXCLUSIVE SPECIALIST SHOPS Nokia Channel Structure ? Late entry to the China market with less historic overhead ? Flat distribution channels ? Develops exclusive specialist shops ? Provides aftersale services Source: China Computer Journal Vendor 1sttier resellers Consumers 2ndtier resellers Retailers/retail chain stores 6% 3% 91% 22% 33% 36% 6% 33% 58% Rationales ? Nokia employs PTAC, CellStar, Beijing Telemunication Equipment Factory, Bright Point, Express Fortune, and Tech Glory as its 6 firsttier resellers ? Nokia requires resellers to report the promotion plan and product ordering plans a quarter in advance, and since the demand for handsets tends to fluctuate across promotional programs, this inflexible strategy generally limits the potential gain when market demand changes across promotions ? Close to 900 retail shops and counters countrywide, with 50% growth from 1999 ? Form exclusive specialist shop to provide onestep solution to end users SAMSUNG010605BJkickoff2 22 ORGANIZATION AND OWNERSHIP 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 SAMSUNG010605BJkickoff2 23 ? Nokia has 7JV and 1 WOFE in China, among which Nokia Beijing and Nokia Dongguan are manufacturing mobile handsets. Nokia Beijing has annual production capacity of 30 million units in 2001. ? The main drivers for Nokia to setup JVs and WOFEs in China include building local alliances, localizing manufacturing to meet domestic market demand and increase exports, and technology transfer encouraged by the Chinese government ?With a narrow product portfolio, Nokia?s organization is product focused with coordinated sales and marketing effort across JVs that manufacture the same products KEY MESSAGES ORGANIZATION AND OWNERSHIP SAMSUNG010605BJkickoff2 24 NOKIA HAS 7 JVs AND 1 WOFE IN CHINA, AMONG WHICH 2 JVs ARE DEVOTED TO MOBILE HANDSETS Main drivers ? Builds successful alliance with Chinese partners ? Localizes manu facturing for major products ? Meets domestic market demand and increases exports ? Realizes technology and skill transfer in development, manufacturing and management ? Helps Chinese partners improve petitiveness in China and globally Nokia international Nokia Beijing mobile mu nication Nokia Dongguan mobile phone Nokia Fujian mobile munication technology Nokia Beijing, Hangxing tele Nokia Dongda tele technology Nokia Zhongxin digital technology Nokia Suzhou tele Nokia Chongqin tele Established year Product offering 1995 1995 1997 1994 2000 1999 1998 ? GSM system and equipment ? Mobile handsets ? Mobile handsets ? GSM 900/1800 work services ? Mobile switches ? Wireless applications solutions and services ? Digital multimedia terminals ? GSM base station ? Cellular work transmission products 50% with Shouxin 70% With Dongguan Wanxin With Fujian mobile With Beijing Hangxing With Dongruan With Zhongxin and broadcasting science institute 100% SAMSUNG010605BJkickoff2 25 NOK
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