【正文】 ackground 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 27 ?Nokia?s sales in China grew 31% and its operating profit grew 26% in 2000, among which, mobile handsets contributed to 59% of the sales and 70% of the profit. ?Mobile handset plays an increasingly important role in Nokia?s product portfolio, as it represents 59% of the sales in 2000 from 54% in 1999. ? Nokia has secured an operating margin of 22% in mobile handsets, the highest margin in the mobile handset industry in China, due to highly efficient operations that keep the cost down to minimum, even though intensive petition has driven the operating margin down from 24% in 1999. KEY MESSAGES FINANCIAL PERFORMANCE SAMSUNG010605BJkickoff2 28 NOKIA SEES 30% GROWTH IN SALES AND OPERATING PROFIT WHERE MOBILE HANDSETS CONTRIBUTE MORE THAN 50% Revenues in China Operating profit in China 1 , 1 1 41 , 5 9 72,052 2,697 2000 Mobile handsets USD millions 262356406 512 1999 2000 31% 26% 1999 Mobile handsets Source: Nokia Press Release, IDC, McKinsey Analysis 。 Company during an oral presentation。 however, it spends a great amount of effort in understanding customer requirements and tailors its product to meet these requirements. ? Nokia employs PTAC, CellStar, Beijing Telemunication Equipment Factory, Bright Point, Express Fortune, and Tech Glory as the firsttier resellers to distribute handsets through authorized stores and counters. The distribution channels are relatively flat. ? While its retail shops are growing rapidly to approximately 900 around the country, Nokia also develops exclusive specialist shops in order to provide “onestep” solutions to end users ? Nokia implements a highly efficient customer service system with 250 service stations and mobile service stations for rural areas. It provides good pre and after sales service KEY MESSAGES VALUE CHAIN STRATEGY SAMSUNG010605BJkickoff2 19 NOKIA IS STRONG AT MARKETING, SALES AND SERVICE, BUT WEAK AT TECHNOLOGY Manufacturing and supply chain Sales and distribution Marketing and branding Ramp。D centers with Chinese universities ? Builds exclusive specialist shops to bring onestep solutions to end users ? Builds fixed and mobile service stations with wide geographic coverage including rural areas Source: Nokia press Release SAMSUNG010605BJkickoff2 7 NOKIA HAS CAUGHT UP WITH MOTOROLA AS MARKET LEADERS 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: IDC, McKinsey Analysis SAMSUNG010605BJkickoff2 8 UNLIKE ITS COMPETITORS, NOKIA’S MARKET SHARE IS THE SAME AMONGST NEW AND REPURCHASE BUYERS 31 31 3128 29 291012 1287 723 2121Others Nokia Ericsson Siemens Motorola Repurchase Buyers New Buyers Total market Percent of units sold, 2000 4Q 25% 75% % of Market 100% Definition: ? New buyer:never bought mobile phone before ? Repurchase buyer: bought mobile phone before Source: IDC, McKinsey analysis SAMSUNG010605BJkickoff2 9 AMONG REPURCHASERS, NOKIA’S CHURN RATE IS HIGH, BUT AT PAR WITH MOTOROLA Percent, 2000 10633241566Ericsson Nokia Alcatel Others Siemens Brand bought by previous Nokia owners Motorola Samsung 11326326319Motorola Alcatel Others Siemens Brand bought by previous Motorola owners Nokia Samsung Ericsson Source: McKinsey analysis SAMSUNG010605BJkickoff2 10 PRODUCT/MARKET 1. Background information ? Location ? Reg