【正文】 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 20 SAMSUNG010605BJkickoff2 NOKIA IS STRONG AT MARKETING, SALES AND SERVICE, BUT WEAK AT TECHNOLOGY Manufacturing and supply chain Sales and distribution Marketing and branding RD Strengths Levers for improvement ? Established RD center in 98/99 in Beijing for China market, with 150 research staff ? Strong in low end development ? Good product quality and design ? Weaker position in high end segment and high end technology ? Position in low end under attack ? Scalable local production ? Optimized logistics ? Countrywide distribution channels and strong channel management ? High retailers preference ? Lower rating of retail support ? Retailer preference not translating into higher market share ? Strong brand awareness and preference ? Promotes “technology based on people” ? Awareness and preference lower than Motorola ? Brand in young market under attack ? Low technology image Service ? Highly efficient customer service system with 250 service stations and mobile service stations for rural areas ? Good pre and after sales service, . “one hour repair” service 21 SAMSUNG010605BJkickoff2 ….on Nokia ……on Motorola NOKIA HAS REPUTATION GAP AS TECHNOLOGY LEADER, AND 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 22 SAMSUNG010605BJkickoff2 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 23 SAMSUNG010605BJkickoff2 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 ? Mi