【正文】 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), 2000 SEC China010821BJToshiba 資料庫(kù)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。s market share Sales by customer segments Percent of units shipment (M), 2000 Others Dell IBM Founder Legend Acer Toshiba SEC China010821BJToshiba 資料庫(kù)下載 VALUE CHAIN 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 ? Key product offerings ? Market position SEC China010821BJToshiba 資料庫(kù)下載 Source: Literature Search, Konka web site, team analysis Ramp。D Manufacturing Marketing amp。 Sales Distribution AfterSales Services ? Toshiba Digital Media Network Company is responsible for Color TV Ramp。D ?Dalian Toshiba is responsible for TV production. 30% parts e from China ?Dalian Toshiba and its 4 subsidiaries in Dalian, Beijing, Shanghai and Guangzhou are responsible for marketing and sales ?Dalian Toshiba primarily uses sales forces in its four subsidiaries to sell TV products directly to retailers. It also uses distributors in certain regions such as Chongqing. ? Toshiba (China) helped set up the aftersales service work, and Dalian Toshiba is running the work and responsible for PNL. Digital media Digital Media Network Co. Dalian Toshiba TV Co. TOSHIBA CHINA TV BUSINESS HAS A PRODUCT LINE ORIENTED VALUE DELIVERY SYSTEM SEC China010821BJToshiba 資料庫(kù)下載 DALIAN TOSHIBA’S TV DISTRIBUTION CHANNEL Source: McKinsey Literature Search, external interviews, McKinsey analysis Dalian Toshiba TV Co. Manufacturing Plant Dalian Subsidiary Beijing Subsidiary Shanghai Subsidiary Guangzhou Subsidiary Distributors Retailers: Hyper/supermarket: 10% Designated Stores: 25% Dept. Stores: 30% Specialty Stores: 35% Consumers Subsidiary Sales Force 70% 30% SEC China010821BJToshiba 資料庫(kù)下載 TOSHIBA ADOPTS THE NATIONAL CHIEFDISTRIBUTOR PRACTICE IN NOTEBOOK BUSNIESS IN CHINA Ramp。D Manufacturing Marketing and branding Sales and distribution Aftersales service ? Toshiba Ramp。D ? Toshiba SH ? OEM: Renbao, a Taiwanese OEM player ? Digital China ? Digital China (for Toshiba notebook only) ? Toshiba ? Digital China – Centralize key accounts across different products – Centralize SI for key accounts (banking, tax) – Be in charge of channel develop ment and management ? Digital China – Major responsibility ? Toshiba SH factory – Parts39。 inventory – Ancillary hotline Toshiba Toshiba SH OEM Toshiba Toshiba SH Dealers Digital China Source: interview SEC China010821BJToshiba 資料庫(kù)下載 TOSHIBA HAS POSITIONED CHINA AS A KEY Ramp。D BASE * The other two Ramp。D centers are in the UK and the US respectively Source: Literature research ? Threelayer structure of Toshiba Ramp。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 in China –Established Ramp。D department in Beijing, April 2001 –Plan to develop it into Toshiba (China) Ramp。D center” in October 2001 which will be the third overseas Ramp。D center of Toshiba –Plan to have 250 people this year and expand to 500 people in Ramp。D center in 2020 – Ramp。D SEC China010821BJToshiba 資料庫(kù)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。 individualized demand for hardware configuration SEC China010821BJToshiba 資料庫(kù)下載 UNDER STRONG COST PRESSURE, DIGITAL CHINA AND TOSHIBA ARE PUSHING TOWARDS MORE FLATTENED CHANNEL STRUCTURE Source: CCID, interview Channel Structure Channel Cost Percent of retail price Digital China Core distributors (~ 50) Direct Specialty shops (over 100) Industry distributors End users Second tier dealers (hundreds) Before 1997 19971998 19992001 Future expecta tion of manufacturers 10 10 810 58 ? Pay sufficient attention to fastgrowing customer segments, such as