34_SEC China010821BJ-IBM.ppt

SEC China010821BJ-IBM,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 organization without prior written approval from McKinsey it is not a complete record of the discussion.,Aug,2001,SEC China010821BJ-IBM,1,OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK,4.Value chain strategy,5.Organization and ownership,6.Financial performance,Focus onMarketing,advertising and promotionDistribution(channel and sales force),Organization structureOwnership structure,Sales Profit,2.Strategy,3.Product/market,MissionVisionCorporate strategyMarket position,Key product offeringsKey customersPricing,1.Background information,LocationManagementteamStarting year,Number of employeesEra analysis,SEC China010821BJ-IBM,2,BACKGROUND INFORMATION,1.Background information,LocationManagementteamStarting year,Number of employeesEra analysis,4.Value chain strategy,5.Organization and ownership,6.Financial performance,Focus onMarketing,advertising and promotionDistribution(channel and sales force),Organization structureOwnership structure,Sales Profit,2.Strategy,3.Product/market,MissionVisionCorporate strategyMarket position,Key product offeringsKey customersPricing,SEC China010821BJ-IBM,3,IBM HAS GRADUALLY EXPANDED ITS PRESENCE IN CHINA,Location,Beijing,Managing director,Zhou Weikun,Starting year,1984(representative office)1992(IBM China Co.Ltd.),Number of employees,Over 3000,Key milestones,Set up IBM Customer Association in 1984 Opened Beijing,Shanghai,Shenzhen,Chengdu,Guangzhou,Nanjing,Xian,Chongqing offices Established customer service network covering dozens of China major cities Set up China purchasing center*in Shenzhen,Background information,*IBMs purchase in china has increased from 30M USD in 1993 to 1B USD in 1998Source:Literature research,SEC China010821BJ-IBM,4,BACKGROUND INFORMATION,4.Value chain strategy,5.Organization and ownership,6.Financial performance,Focus onMarketing,advertising and promotionDistribution(channel and sales force),Organization structureOwnership structure,Sales Profit,2.Strategy,3.Product/market,MissionVisionCorporate strategyMarket position,Key product offeringsKey customersPricing,1.Background information,LocationManagementteamStarting year,Number of employeesEra analysis,SEC China010821BJ-IBM,5,GLOBALLY,IBM HAS DECIDED TO EXIT PC BUSINESS GRADUALLY IN THE NEXT SEVEN YEARS,*IBMs PC business showed/surprising strength in revenue growth and profitability in the September quarter last yearSource:Literature research,*IBMs PC business showed surprising strength in revenue growth and profitability in the September quarter last year,which would lessen the urgency to exit this business in the near termSource:Literature research,SEC China010821BJ-IBM,6,Source:IDC,Desktop PC market sharePercent of units shipment(m),Others,IBM,Great Wall,Founder,Legend,100%=,4.5,6.6,Growth rate percent,44.8,20.3,13.9,87.6,125.4,94.7,99,00,99,00,Growth rate percent,100%=,2.9,4.8,68.5,24.9,170.6,193.5,121.6,128.5,65.0,18.8,Others,Founder,Dell,Acer,Legend,IBM,Toshiba,Notebook market sharePercent of units shipment(m),IBMs market share,IBM KEPT ITS MARKET POSITION IN NOTEBOOK,BUT ITS DESKTOP PC BUSINESS FAILED TO CATCH UP WITH TOTAL MARKET GROWTH,SEC China010821BJ-IBM,7,PRODUCT/MARKET,4.Value chain strategy,5.Organization and ownership,6.Financial performance,Focus onMarketing,advertising and promotionDistribution(channel and sales force),Organization structureOwnership structure,Sales Profit,2.Strategy,3.Product/market,MissionVisionCorporate strategyMarket position,Key product offeringsKey customersPricing,1.Background information,LocationManagementteamStarting year,Number of employeesEra analysis,SEC China010821BJ-IBM,8,IBM IS RIGIDLY AND AGGRESSIVELY IMPLEMENTING TOTAL SOLUTION AND SERVICE PROVIDER STRATEGY IN PRODUCT OFFERING,Key product offerings,Source:Literature research,Product category,Product category,Desktop PCNotebook,NetVista commercial PCNetVista A40NetVista A10NetVista A20-6269BSCNetVista A20-634587C/634586CNetVista Multi-media PCNetVista X40iNetVista A60iNetVista A40iNetVista A20i-21949DC/219415CNetVista A20i-219755C/21978DCNetVista A10iThinkPad A seriesThinkPad T seriesThinkPad X seriesThinkPad i series,Source:literature research,SEC China010821BJ-IBM,9,IBM IS PARTICULARLY STRONG IN GOVERNMENT AND SMES,BUT WEAK IN HOME AND EDUCATION,THE TYPICAL LOCAL PLAYERS TERRITORIES,Source:IDC,Sales by customer segmentsPercent of units shipment(000s),2000,Small office,Home,100%=,IBM,Market average,264,6,564,Small business,Education,Medium business,Government,Large business,Small office,Home,100%=,IBM,Market average,83,484,Education,Government,Large business,Small business,Medium business,Desktop PC market,Notebook market,2.3,2.9,3.9,3.5,3.7,4.8,SEC China010821BJ-IBM,10,IBM IS A DOMINANT HIGH-END PLAYER,GRASPING OVER 20%MARKET SHARE OF HIGH-END DESKTOP PC AND OVER 50%OF PRIMIUM NOTEBOOK MARKET,Source:IDC,interview,Others,Dell,Compaq,Great Wall,IBM,HP,Founder,Legend,2.8,2.8,2.7,5.3,2.1,Low(0-1k),Medium(1-1.5k),High(1.5k),100%=,1.8,Desktop PC market,1999,43.6,18.4,3.7,2.6,0.4,Others,Dell,IBM,Founder,Legend,0.9,Low(0-2k),Medium(2-2.5k),High(2.5-3.5k),100%=,Notebook market,2000,0.11,0.12,0.17,0.7,3.5,1.4,0.1,Acer,Toshiba,0.08,Premium(3.5K),Price brand USD,1,5.1,0,1.5,1.5,2.2,