SAMSUNG010605BJ-kickoff2CONFIDENTIALMobile Handset Competitor Analysis: NokiaSAMSUNG ELECTRONICS CHINA (SEC China)August 20, 2001This 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 record of the discussion.SAMSUNG010605BJ-kickoff22OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK1. Background information• Location• Registered capital• Managementteam• Equitystructure• Starting year• Number of employees• Era analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus 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• Value proposition• Geographic focus• PricingSAMSUNG010605BJ-kickoff23KEY ISSUES TO PROBE - NOKIAStrategyProduct/marketValue chainstrategyOrganization &ownershipFinancialperformance• How does Nokia position itself now and in 2005?• What are Nokia’s product and value delivery system strategies that differentiate itself from its competitors?• How does its current market position help achieve its goal?• What is Nokia’s key product offerings and how does Nokia differentiate its products from its competitors’?• What customer segments is Nokia targeting at?• In which geographic areas is Nokia strong or weak?• How does Nokia’s product development meet customer requirement?• How do Nokia’s distribution channels differ from its competitors’?• Why does Nokia launch exclusive specialist shops? • How does Nokia provide customer services?• How much does Nokia invest in JVs and WOFEs in China, and what are the main drivers?• How does Nokia organize to enable the JVs and WOFEs to work together?• How strong is Nokia’s performance and what are the major contributors?• What is Nokia’s performance trend?SAMSUNG010605BJ-kickoff24BACKGROUND INFORMATION1. Background information• Location• Registered capital• Managementteam• Equitystructure• Starting year• Number of employees• Era analysis4. Value chain strategy5. Organization and ownership6. 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• Value proposition• Geographic focus• PricingSAMSUNG010605BJ-kickoff25NOKIA IS RELATIVELY A LATE-COMER TO CHINA; HOWEVERIT HAS GROWN RAPIDLY TO BECOME A MARKET LEADER IN MOBILE COMMUNICATIONBackgroundImplicationLocation• Based at Finland, with offi...