麦肯锡三星标杆motorola en

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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 & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete August 20, 2001
Mobile Handset Competitor Profile: Motorola
SAMSUNG ELECTRONICS CHINA
(SEC China)
中国人力资源开发网（简称:中人网 ）
MOTOROLA HAS HIGH ASPIRATIONS FOR ITS CHINA BUSINESS
•Targeting sales of US$ 10 billion in China by 2002/2003
•Focusing production operations in China, as production
there is about 15-20% cheaper than in Singapore and
30-40% cheaper than in Europe
KEY MESSAGES -PRODUCT/MARKET
•Motorola has entered the low-end of the mobile handset market
since 1999. Its products are more function-driven compared with
Nokia’s products, which are more fashion-driven
•Motorola takes more than 50% of the share in the high-end and
high-mid-end of the mobile handset market, and more than 20% of
the share in the low-end and mid-low-end. Its low-end handsets
represent more then 50% of its product offerings
•Motorola’s market share is relatively consistent across tier-cities
and geographies, taking approximately 30% everywhere
KEY MESSAGES -VALUE CHAIN STRATEGY
•Motorola’s value delivery system strategy has evolved since 1997.
Product development has been more customer oriented and new
releases are catering for needs by different customer segments.
•Localization of mobile handset manufacturing has been furthered
to a production capacity of 18 million units in Tianjin and 8 million
units in Hangzhou.
•With increasing investment in sales and marketing, Motorola is
now the strongest brand in China
•Motorola employs PTAC, CellStart, Heguang, Eastcom, SunYin,
Sinya, North Telecom, Hengxin, and Forte as its 9 first-tier
resellers. It intends to reduce the many tiers of resellers that has
become a disadvantage to Motorola’s channel efficiency
•Motorola’s key strength lies in advanced technology, committed
promotion, wide distribution network and quality after-sales service
KEY MESSAGES -ORGANIZATION AND OWNERSHIP
•Motorola has 8 JVs, 1 WOFE and 1 holding company in China, among
which Hangzhou Eastcom Cellular Phone (8 million units production
capacity) and Motorola Tianjin(MCEL, 18 million units capacity) are
devoted to mobile handsets
•Motorola is mainly organized along product lines, however, its WOFE
in Tianjin has been reorganized to be more customer focused.
Motorola Tianjin is divided into 4 sectors, i.e. Personal Communication
for consumers, Commercial, Government and Industrial Solutions for
corporate and government, Global Telecommunication Solutions for
telecom operators, and Integrated Electronic Systems for assemblers
KEY MESSAGES -FINANCIAL PERFORMANCE
•Motorola has been maintaining its market share of 30% in mobile
handset. Due to increasingly intensive competitions, its market
share is expected to drop to 20% in 2005.
•Motorola’s EBIT margin for mobile handset is 5%, which is very
low compared 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.。