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BM’s market share Sales by customer segments Percent of units shipment (M) SEC China010821BJIBM 11 VALUE CHAIN STRATEGY 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 ? Pricing 1. Background information ? Location ? Management team ? Starting year ? Number of employees ? Era analysis SEC China010821BJIBM 12 IBM HAS SET CHINA AS ONE OF KEY BASES IN ITS GLOBAL RD Global research bases ? 8 global research bases ? Total staff around 4,000 * Under construction Source: Literature research, interview China RD base ? Established in 1995 (IBM is one of the first MNCs that set up RD center in China) ? Staffed over 100 people to research center and over 200 people to development center ? Research focuses are China specific technology such as language recognition, handwriting input and puterized translation technology application in Chinaspecific environment and industry solution。s PC business showed/surprising strength in revenue growth and profitability in the September quarter last year Source: Literature research Strategy ? Shift productoriented strategy to industryoriented development strategy ? Define Emerce as focus of IBM business in China ? Position PC as part of EoN (edge of the ) concept instead of a standalone product ? Gradually exist* PC business in the next seven years globally by selling it to Dell with Dell39。SEC China010821BJIBM CONFIDENTIAL PC Competitor Analysis: IBM SAMSUNG ELECTRONICS CHINA (SEC China) 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. Aug, 2023 SEC China010821BJIBM 1 OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK 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 ? Pricing 1. Background information ? Location ? Management team ? Starting year ? Number of employees ? Era analysis SEC China010821BJIBM 2 BACKGROUND INFORMATION 1. Background information ? Location ? Management team ? 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