【正文】 focus ? Pricing SAMSUNG010605BJkickoff2 2 KEY ISSUES TO PROBE SIEMENS Strategy Product/market Value chain strategy Organization amp。 ownership Financial performance ? What does Siemens aim to be in 2020 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 Ramp。D centers in Beijing and Shanghai and has raised the mobile handset production capacity in Shanghai to 14 million units in 2020. It is a leader in TDSCDMA 3G technology in China ? Siemens has achieved a market share of 12% in sales volume, after intensive marketing of new models with petitive pricing, and aims to increase its market share to 15% ? Siemens distributes through exclusive 1sttier national reseller PTAC and 2ndtier provincial resellers. A uniform price level in the market is maintained nationwide to ensure healthy sales. KEY MESSAGES VALUE CHAIN STRATEGY SAMSUNG010605BJkickoff2 18 SIEMENS VALUE DELIVERY SYSTEM HAS EVOLVED OVER THE YEARS From. . . (1997) To. . . (2020) ? No Ramp。 D M a nu f ac t ur i ng S al es an d m ar ke t i ng R amp。L RESPONSIBILITY Organization structure Pamp。D and marketing until 2020 ? Production capacity in Shanghai has been raised to 14 million units from 10 million units in 2020 ? Uses different distributor (PTAC), but still only one nationwide ? Market share 12% as a result of intensive marketing of new models with petitive pricing Aims to increase market share to 15% Source: Interviews, McKinsey analysis SAMSUNG010605BJkickoff2 19 SIEMENS INVESTS TREMENDOUS EFFORT IN EVERY PART OF THE VALUE CHAIN Ramp。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。 Company. This material was used by McKinsey amp。D centers for mobile munication in Beijing and Shanghai ? Mobile handset production capacity being raised to 14 million in Shanghai, a growth of 40% since 2020 ? Intensive marketing on new products with most petitive pricing ? Carefully select exclusive channel partner PTAC to maintain uniform price level nationwide to ensure healthy sales ? Helps resellers set up service centers to handle repair and maintenance Vision ? To be number 2 in the Asian mobile munication market (without Japan and Korea) SAMSUNG010605BJkickoff2 7 SIEMENS IS RISING STEADILY IN MOBILE HANDSETS SINCE 1999 Monthly market share development (Percent of market in units sold) 98 99 Jan ?00 Dec ?00 010203040Nokia Motorola Siemens Ericsson Source: Retail Audit Source: IDC, McKinsey Analysis SAMSUNG010605BJkickoff2 8 SIEMENS HAS OVERTAKEN ERICSSON TO BE IN MOBILE HANDSET BY BOTH REVENUE AND SALES VOLUME Others Siemens Ericsson Motorola 33 32 3429272687 778105 9918 17141999 2020 2020 Samsung Nokia Breakdown of sales by brand each year Percent Source: GfK, IDC, McKinsey analysis Others Siemens Ericsson Motorola 3429 303228 2888 98101238715 17 141999 2020 2020 Samsung Nokia Breakdown of units sold by brand each year Percent SAMSUNG010605BJkickoff2 9 PRODUCT/MARKET 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 10 ? Siemens offers a pete range of mobile munication solutions including devices, infrastructure and applications. Siemens?s mobile handsets e with good quality and petitive pricing ? Siemens targets the mid to low end of the mobile handset market. Most of its models are in the price range from below RMB 1000 to RMB 2200 ? Siemens has devoted great attention to the important 4thtier cities and west China, hence its market share in these developing areas are relatively higher than its share in the more developed