1、SEC China010821BJ-Toshiba,CONFIDENTIAL,Brown Goods and PC Competitor Analysis: Toshiba,SAMSUNG ELECTRONICS CHINA (SEC China),August 20, 2001,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 organization
2、without prior written approval from McKinsey it is not a complete record of the discussion.,SEC China010821BJ-Toshiba,1,OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK,1. Background information,Location Registered capital Management team Equity structure,Starting year Number of employees Era analysis,4. V
3、alue 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 offering
4、s Market position,SEC China010821BJ-Toshiba,2,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
5、, 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 China010821BJ-Toshiba,3,Source: Toshiba website, Lit search,BACKGROUND
6、INFORMATION TOSHIBA,Established:,1875 by Hisashige Tanaka,President & CEO:,Tadashi Okamura,Total Assets:,US$51,578 million,Shareholders Equity: US$10,054 million,Number of employees: 190,000 worldwide,(As of September 30, 2000),Domestic Plants, Branches Offices And Other Facilities:,Production facil
7、ities: 25 Branch offices: 35 Sales offices: 23,Overseas Plants, Branches Offices and Other Facilities:,Offices: 10 Manufacturing companies: 42 Subsidiaries & affiliates: 72,SEC China010821BJ-Toshiba,4,Source: Company website, Lit search,BACKGROUND INFORMATION DALIAN TOSHIBA TELEVISION, LTD,Location:
8、,Dalian, Liaoning Province,Starting year:,1996,Registered Capital:,US$30 million,Unit Sold: color TV 1 million sets, 50% export (Year 2000),Joint Venture Partners,Type,Foreign Juristic Persons Shares,Foreign Juristic Persons Shares,Toshiba,Toshiba (China) Co.,Dalian Daxian (Group) Co., Ltd.,Number o
9、f employees: 2,000,Products: 21 34 color TV (CRT, Projection, Flat),Domestic Juristic Persons Shares,SEC China010821BJ-Toshiba,5,Source: Company Report, Lit search,TOSHIBAS CORPORATE MANAGEMENT TEAM,President & CEO Tadashi Okamura,Corporate project,Corporate staff,Corporate supportservices,iValue Cr
10、eation Company CEO:Tsutomu Kawada,e-Solutions Company CEO:Hiroo Okuhara,Social Infrastructure Systems Company CEO: Tsuyoshi Kimura,Digital Media Network Company CEO: Atsutoshi Nishida,Mobile Communications CompanyCEO: Tetsuya Mizoguchi,Power Systems & Services Company CEO: Toshiyuki Oshima,Semicondu
11、ctor Company CEO: Takeshi Nakagawa,Display Devices & Components Company CEO: Eisaburo Hamano,Medical Systems Company CEO: Masamichi Katsurada,Home Appliances Company CEO: Makoto Nakagawa,SEC China010821BJ-Toshiba,6,Source: Company website, Literature Search,HISTORY OF TOSHIBA,SEC China010821BJ-Toshi
12、ba,7,Source: Literature Search; McKinsey Analysis,TOSHIBAS DEVELOPMENT WENT THROUGH THREE STAGES,Organization structure Corporate strategy Product Development & Technology,1875-1939,Two Japanese electrical equipment manufacturers merged in 1939 to create Toshiba. Technological innovation accounted f
13、or the companies successes. One of the founders was the so-called Edison of Japan.Main products included transformers, electric motors, light bulbs, radio receivers, and cathode-ray tubes.,1978- PRESENT,1939-1978,The company grew rapidly and became a market leader in the electrical and electronic in
14、dustry. However, the organization became more bureaucratic.The company continued to be innovative in the early years, producing many firsts in the industry. However, It lost its innovator image in the 70s .Numerous leading products in the electrical and electronics areas. Examples includes Japans fi
15、rst vacuum cleaner, first fluorescent lamp, first radar, etc.,Toshiba shifted direction by investing heavily in IT segment. The organization became increasingly global, employing 190,000 employees world-wide with annual sales over 5 trillion.IT focus, diversification, innovation and globalization ar
16、e four key elements of Toshibas corporate strategy. Toshiba is intensively focusing on IT-related business (i.e. telecom and internet), meanwhile, leveraging its legacy businesses to generate stable income,Business Building,Becoming Industry Leader,Meeting worldwide competition,SEC China010821BJ-Tos
17、hiba,8,Source: Literature Search; McKinsey Analysis,DEVELOPMENT OF DALIAN TOSHIBAS TV BUSINESS IN CHINA,Key initiative Key results,1996-1997,Founded as a joint venture in 1996, construction was completed in 1997. Conducted accurate market forecast and implemented just in order inventory management.
18、Inventory turn-over less than two days. Made profit the next year.,2001,1998-2000,Focused on high profit margin PJTV segment, and competed on technology, service and management rather than price. Strengthened customer serviceRevenue and profit grew 50% annually. Became the No. 1 market share leader
19、in PJTV segment.,Toshiba decided to relocate its digital TV production to Dalian and invested 300 million to expand capacity from one million units to 1.5 million unitsexported 800,000 units to Japan.,Business Building,Establishing Leadership in PJTV Market,Becoming Toshibas Key Global TV Production
20、 Base,SEC China010821BJ-Toshiba,9,TOSHIBA WILL FURTHER INVEST IN IT INDUSTRY IN CHINA,Background information,Source: Literature research, interview,Source: literature research, interview,SEC China010821BJ-Toshiba,10,TOSHIBA IS THE LEADING PLAYER IN NOTEBOOK MARKET BOTH IN CHINA AND GLOBALLY,Time,Key
21、 milestones,1985 1990 1993 1994 1999 2000,Introduced the first notebook in the world Introduced STN notebook Introduced color TFT notebook Introduced Pentium-empowered notebook Ranked number one in China notebook market for 4 years Ranked number one in world wide notebook market for 7 years,Era anal
22、ysis of Toshiba in Notebook,Source: literature research, interview,SEC China010821BJ-Toshiba,11,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. Fina
23、ncial 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,SEC China010821BJ-Toshiba,12,TOSHIBAS
24、MISSION AND VISION,Corporate mission “We, the Toshiba Group companies, based on our total commitment to people and to the future, are determined to help create a higher quality of life for all people, and to do our part to help ensure that progress continues within the world community“,Corporate vis
25、ion “To grow with excellence as the leading-edge, internet-ready enterprise globally by accelerating innovation with agility, and to create a 21st century of success hand in hand with our customers“,Source: Company website, Lit search.,SEC China010821BJ-Toshiba,13,THREE STRATEGIES PROPEL TOSHIBA TO
26、BECOME A GLOBAL HI-TECH LEADER IN THE NEW MELLIMUM,Toshiba as a leading-edge, internet-ready global leader in hi-tech,Accelerate the speed of innovation Management Innovation (MI2001) is a major initiative being promoted throughout Toshiba Group. It is aimed at advancing creative destruction and com
27、petitive superiority,Champion market-centric management Customer Relationship Management and Supply Chain Management systems will be deployed to cover company-wide operations.,Be internet-ready Digital Manufacturing, a new system, will be introduced throughout the Toshiba Group An IT infrastructure
28、for collaborative engineering will be established,Source: Lit search, external interviews: Toshiba Annual Report,SEC China010821BJ-Toshiba,14,ASSESSMENT OF TOSHIBAS CURRENT STRATEGIC POSITION SWOT,Strengths,Broad and diversified product portfolio Strong presence in Asia Strong R&D and manufacturing
29、capabilities,Weaknesses,Less customer focused Weak brand name in cutting-edge information technologies Unbalanced global presence,Opportunities,Global digital convergence Emerging technologies, i.e., Internet, 3G China joining WTO opens doors to foreign companies,Threats,Bureaucratic management styl
30、e Its core semiconductor business is a cyclical commodity business Behind the curve in key IT developments,SEC China010821BJ-Toshiba,15,THERE ARE TWO SUCCESSFUL MODELS IN THE CHINA CTV MARKET, DALIAN TOSHIBA FOLLOWS THE SONY MODEL,The Konka Model,Capital intensive, aggressive growth through economie
31、s of scale in manufacturing and in the sales force From 1993 to 1998 Konka acquired TV manufacturers: North east Du Dan Jian, San Xi, An Suo, Chong Qing factories to bulk up Grew capacity by 2 million units from 1993 to 1998 Through economics of scale and aggressive pricing Konka was able to grow ma
32、rket share from 3% to 11% from 1995 to 2000,The Sony Model,Zero in on the high end, high profit segment of CRT TV market with a strong brand able to command price premiums Not in a strong presence in unit market share, but the top brand when consumers respond for the brand quality and reliability Co
33、rporate philosophy unwilling to sacrifice profits for larger market share (vast different from Chinese players) Future target focused on higher end, cutting edge technology TVs e.g. PJTV, Digital TV, LCD and PDP which have significantly higher profit margins.,Source: Lit search, McKinsey analysis,SE
34、C China010821BJ-Toshiba,16,TOSHIBA SHIFTS ITS STRATEGIC FOCUS TO APPLICATION SOLUTION AND CUSTOMER SERVICE IN CHINA NOTEBOOK MARKET,Mission,To be the most responsible IT product application solution and service provider,Time,Strategic focus,1996 1997 1998 1999,Product itself Channel development Appl
35、ication Customer service,2000,VIP certification focusing on core customers Channel development into 2nd tier geographies Application solution of “mobile office“ concept,Toshiba notebook strategy* in China,Strategy evolvement,* Toshiba notebook strategy in China is co-developed by Digital China, Tosh
36、ibas exclusive notebook chief-distributor in China Source: literature research, interview,SEC China010821BJ-Toshiba,17,PRODUCT/MARKET,1. Background information,Location Registered capital Management team Equity structure,Starting year Number of employees Era analysis,4. Value chain strategy,5. Organ
37、ization 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 China
38、010821BJ-Toshiba,18,TOSHIBAS GLOBAL NET SALES BY BUSINESS SEGMENT,Source: Toshiba web site, Lit Search,Yea 2000 ( billion),Information & Communications & Industrial Systems 1,858,Power Systems 571,Electronic Devices & Components 1,477,Digital Media 1,518,Home Appliances 660,Others473,SEC China010821
39、BJ-Toshiba,19,DALIAN TOSHIBAs KEY TV PRODUCT OFFERINGS,Color TVs (inch, model no.),Projection TV Series: 43 61 61D9UXC 50D9UXC 43D9UXC 50D8UXC 43D8UXC,Source: Company website, Lit search,CRT TV Series: 21 29 29D2DC 29D2XC 25D2XC 25E3DC3 21D2NC,Flat TV Series: 21 34 34D8UXC 34D6DC 29D8UXC 29D6DC 29D3
40、XC 25D6XC 21AF6C,SEC China010821BJ-Toshiba,20,DALIAN TOSHIBAS MARKET POSITION IN CHINAS CONVENTIONAL CRT TV MARKET: NO. 5 MARKET SHARE LEADER,Market share by sales, %,Source: GFK, McKinsey Analysis, External interviews: Konka, Sony, Toshiba,1999,2000,Others,100%,100%,Key trends,Rationale,Industry un
41、dergoes further consolidation Foreign players lose market share to local players,Top five players in the market Changhong, TCl, Konka, Hisense, Skyworth,controlled 41.6% of the market in 1999 grew to 43.7% in 2000 Local players increased market share from 65% in 1999 to 67% in 2000,1.9,2.0,Rowa,LG,P
42、anda,Jinxing,Skyworth-RGB,Xoceco,Philips,Haier,Panasonic,Hisense,Toshiba,TCL,Changhong,Konka,Sony,SEC China010821BJ-Toshiba,21,DALIAN TOSHIBAS MARKET POSITION IN CHINAS PJTV MARKET: NO. 1 MARKET SHARE LEADER,Source: GFK, internal interview, literature search, external interviews: Sony, Panasonic, To
43、shiba,Key trends,Rationale,Established MNCs, Toshiba, Sony will continue to dominate market Local players start establishing themselves by 2005,High-end producers with superior technology in pixel resolution and brightnessLocal players expected to acquire key PJTV technologies as of 2003As compariso
44、n, Changhong alone now controls 20% of large screen CRTV market, local players likely to gain similar share in PJTV market,Market share by sales Percent,Local (Konka Changhong, etc),Other MNCs,Hitachi,Panasonic,Samsung,Sony,Toshiba,1999,2000,100%,100%,SEC China010821BJ-Toshiba,22,PJTV PLAYERS STRENG
45、THS AND WEAKNESSES,Company,Strengths/weaknesses,Toshiba,Strong brand name Aggressive sales and marketing,Sony,No. 1 brand name Premium market with highest industry profits,Samsung,Strong quality in resolution and brightness Solid position in the market Comparable technology with Japanese counterpart
46、s,Other MNCs: Panasonic, Philips, etc.,Possess the technology, but yet to establish themselves in market,Local companies: TCL, Konka, Hinsense, Haier, Changhong,Lack the key technologies for PJTV components tubes and screen Low-end brand have resulted in low sales volume Will fill up the technology
47、gap by about 2003,Source: Lit search, McKinsey analysis,SEC China010821BJ-Toshiba,23,TOSHIBA HAS A FULL-LINE PROUCT OFFERING IN NOTEBOOK, COVERING LOW-END TO PREMIUM SEGMENT,Source: Literature research,Key product offerings,Satellite Series 2800 (13.3“, 14.1“, 15.0“)Portege Series (7220CT, 3480CT, 3
48、490CT)Tecra Series (8100H, 8000J, 8200)Satellite 1750 (13.3“)New satellite 2800 (13.3“, 14.1“,15.0“)Satellite Pro 4600 (13.3“, 14.1“, 15.0“)New Satellite Pro 4600 (14.1“)Satellite 3000 (13.3“),Source: literature research,SEC China010821BJ-Toshiba,24,TOSHIBA IS STRONG IN EDUCATION, LARGE AND MEDIUM B
49、USINESS, BUT PARTICULARLY WEAK IN GOVERNMENT,Source: IDC,Small office,Home,100% =,Toshiba,Market average,73,484,Education,Government,Large business,Small business,Medium business,3.8,3.5,3.7,Sales by customer segments Percent of units shipment (000s), 2000,SEC China010821BJ-Toshiba,25,TOSHIBA IS GENERALLY A MEDIUM TO HIGH-END PLAYER, PARTICULARLY STRONG IN USD 2.5-3.5K PRICE BRAND,Source: IDC,0.9,Low (0-2k),Medium (2-2.5k),
