【正文】 is very low pared with Samsung’s EBIT at 15% and Nokia’s EBIT at 20%. The low EBIT margin is mainly due to its high cost of goods sold. KEY MESSAGES FINANCIAL PERFORMANCE 25 010417SHELM038JL_RAJv5i MOTOROLA HAS GROWN WITH THE MARKET AND MAINTAINED ITS 30% MARKET SHARE IN MOBILE HANDSET 1 . 32 . 02 . 798 99 00Total revenues USD billions 3 . 05 . 01 1 . 098 99 00Number of units Millions 430 38025098 99 00Average price USD Source: IDC, Dresdner Kleinwort, Samsung, McKinsey analysis 26 010417SHELM038JL_RAJv5i 靜夜四無(wú)鄰，荒居舊業(yè)貧。CONFIDENTIAL This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client anization without prior written approval from McKinsey Company. This material was used by McKinsey Company during an oral presentation。 it is not a plete record of the discussion. August 20, 2023 Mobile Handset Competitor Profile: Motorola SAMSUNG ELECTRONICS CHINA (SEC China) OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK 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 2 010417SHELM038JL_RAJv5i BACKGROUND INFORMATION 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 3 010417SHELM038JL_RAJv5i MOTOROLA HAS HIGH ASPIRATIONS FOR ITS CHINA BUSINESS ? Targeting sales of US$ 10 billion in China by 2023/2023 ? Focusing production operations in China, as production there is about 1520% cheaper than in Singapore and 3040% cheaper than in Europe Source: Analyst reports 4 010417SHELM038JL_RAJv5i MOTOROLA’S CHINA BUSINESS SPANS SIX PRODUCT CATEGORIES Motorola China Mobile handsets Network equipment Pagers Twoway radios Semi conductors Auto electronics and accessories Mobile work equipment Fixed line work equipment Wireless munications Source: Motorola website ? Set up representative office in 1987 ? Operations include: – 1 holding pany – 1 WOFE – 8 joint ventures – 26 subsidiaries ? 12,000 employees ? US$ billion total investment to date 5 010417SHELM038JL_RAJv5i STRATEGY 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 6 010417SHELM038JL_RAJv5i MOTOROLA’S HANDSET STRATEGY COMBINES AN ATTRACTIVE PRODUCT RANGE WITH SUPERB VALUE CHAIN