【正文】 ? Industry undergoes further consolidation ? Foreign players lose market share to local players ? Top five players in the market –Changhong, TCl, Konka, Hisense, Skyworth,controlled % of the market in 1999 grew to % in 20xx ? Local players increased market share from 65% in 1999 to ~67% in 20xx Rowa LG Panda Jinxing SkyworthRGB Xoceco Philips Haier Panasonic Hisense Toshiba TCL Changhong Konka Sony SEC China010821BJToshiba 的資料庫下載 DALIAN TOSHIBA’S MARKET POSITION IN CHINA’S PJTV MARKET: NO. 1 MARKET SHARE LEADER Source: GFK, internal interview, literature search, external interviews: Sony, Panasonic, Toshiba Key trends Rationale ? Established MNCs, Toshiba, Sony will continue to dominate market ? Local players start establishing themselves by 20xx ? Highend producers with superior technology in pixel resolution and brightness ? Local players expected to acquire key PJTV technologies as of 20xx ? As parison, Changhong alone now controls ~ 20% of large screen CRTV market, local players likely to gain similar share in PJTV market Market share by sales Percent Local (Konka Changhong, etc) Other MNCs Hitachi Panasonic Samsung Sony Toshiba 1999 20xx 100% 35323332710151461~5~3~4 ~3100% SEC China010821BJToshiba 的資料庫下載 PJTV PLAYERS’ STRENGTHS AND WEAKNESSES Company Strengths/weaknesses Toshiba ? Strong brand name ? Aggressive sales and marketing Sony ? No. 1 brand name ? Premium market with highest industry profits Samsung ? Strong quality in resolution and brightness ? Solid position in the market ? Comparable technology with Japanese counterparts Other MNCs: Panasonic, Philips, etc. ? Possess the technology, but yet to establish themselves in market Local panies: TCL, Konka, Hinsense, Haier, Changhong ? Lack the key technologies for PJTV ponents – tubes and screen ? Lowend brand have resulted in low sales volume ? Will fill up the technology gap by about 20xx Source: Lit search, McKinsey analysis SEC China010821BJToshiba 的資料庫下載 TOSHIBA HAS A FULLLINE PROUCT OFFERING IN NOTEBOOK, COVERING LOWEND TO PREMIUM SEGMENT Source: Literature research Key product offerings ? Satellite Series 2800 (, , ) ? Portege Series (7220CT, 3480CT, 3490CT) ? Tecra Series (8100H, 8000J, 8200) ? Satellite 1750 () ? New satellite 2800 (, ,) ? Satellite Pro 4600 (, , ) ? New Satellite Pro 4600 () ? Satellite 3000 () Source: literature research SEC China010821BJToshiba 的資料庫下載 TOSHIBA IS STRONG IN EDUCATION, LARGE AND MEDIUM BUSINESS, BUT PARTICULARLY WEAK IN GOVERNMENT Source: IDC 1 7 . 83 1 . 42 3 . 52 8 . 82 7 . 42 2 . 28 . 41 0 . 98 . 44 . 85 . 5Small office Home 100% = Toshiba Market average 73 484 Education Government Large business Small business Medium business Sales by customer segments Percent of units shipment (000s), 20xx SEC China010821BJToshiba 的資料庫下載 TOSHIBA IS GENERALLY A MEDIUM TO HIGHEND PLAYER, PARTICULARLY STRONG IN USD PRICE BRAND Source: IDC 4 8 . 82 2 . 71 2 . 1 1 0 . 41 1 . 15 6 . 51 3 . 32 4 . 51 6 . 1 1 0 . 41 7 . 92 4 . 21 2 . 21 3 . 57 . 19 . 23 . 89 . 81 3 . 96 . 62 6 . 62 0 . 2 Low (02k) Medium () High () 100% = Premium () Toshiba39。D BASE * The other two Ramp。D SEC China010821BJToshiba 的資料庫下載 TOSHIBA HAS OUTSOURCED THE MAJOR PART OF NOTEBOOK MANUFACTURING AND ITS DISTRIBUTOR IS CAPABLE OF CUSTOMIZATION IN CONFIGURATION Source: Literature research, interview Manufacturing Parties involved Responsibilities Toshiba SH ? Assembling production to cover total volume sold in China ? Assembling production for expert OEM (Renbao) ? Major part of notebook manufacturing Digital China ? Customization for bigbatch order according to customers39。 D Expenditures Percentage of Net Sales SEC China010821BJToshiba 的資料庫下載 TOSHIBA’S HISTORICAL REVENUES AND PROFITS Net Sales 5 , 5 2 25 , 4 5 8 5 , 9 5 15 , 7 4 95 , 3 0 1CAGR = % 1997 1998 1999 20xx 20xx Net Ine 67159 3 396CAGR = % * Source: Toshiba 20xx Annual Report, Lit search Yen billion 1997 1998 1999 20xx 20xx SEC China010821BJToshiba 的資料庫下載 IN 20xx, DALIAN TOSHIBA’S UNIT SALES IN CHINA WAS 7% OF CHANGHONG’S UNIT SALES, BUT DALIAN TOSHIBA’S GROSS PROFIT IN CHINA WAS 89% OF CHANGHONG’S GROSS PROFIT Unit Sales thousand Dalian Toshiba Changhong Source: 21st Century Economic report, March 19, 20xx Gross Profit billion RMB 1 . 01 . 15007 , 5 0 0Dalian Toshiba Changhong SEC China010821BJToshiba 的資料庫下載 DESPITE OF STRONG GROWTH OF TOTAL MARKET, TOSHIBA NOTEBOOK HAS EXPERIENCED STAGNANT GROWTH OF % ANNUALLY Notebook revenue (RMB billions) Source: IDC Toshiba in China 1999 20xx 1998 9800 CAGR Percent Total China market 1999 20xx 1998 9800 CAGR Percent 。 CEO Corporate project Corporate staff Corporate support services iValue Creation Company eSolutions Company Social Infrastructure Systems Company Digital Media Network Company Mobile Communications Company Power Systems amp。D –First layer focusing on technology trends in the next 35 years –Second layer focusing on multimedia technology and technology trends in the next 23 years –Third layer focusing on product development ? Toshiba Ramp。D Manufacturing Marketing amp。571 Electronic Devices amp。300 million to expand capacity from one million units to mill