Description
This is a presentation describing the Mobile phone industry.
MARKET SHARE
Company Name Nokia Samsung G’Five MS’09 54.1% 6.4% MS’10 36.3% 8.2% 7.3%
Micromax
4.8%
4.1%
30,000 Cr handset market
Source: IDC India 2010- Economic Times
PORTER MODEL
Bargaining power of Suppliers
moderate
Threat of new entrants -Govt. Approvals Very High
Industry Competition International and national players. - high
Bargaining Power of buyers - many options - highly price sensitive high
Threat of substitute. Low
PESTLE ANALYSIS
?
Political – As markets are deregulated, both operators and manufacturers are free to act independently of government intervention. In Countries like India and China where Partial regulations exist, government intervention does take place.
Economic – With incomes rising, people have more disposable income, which enables consumers to be more selective with their choice of mobile phone. ? Also the rates offered by service providers favours the use of mobile phones
?
Social – The rise of the so-called information society has made telecommunications increasingly more important to consumers, both in terms of work and leisure. ? Users are more aware of mobile phone handset choice and advancements due to increased information availability.
?
?
Technological – There have been many global advancements in technology such as MMS, Bluetooth, WAP, GSM, GPRS, cameras etc.
Environmental – There is a concern that the use of mobile phones could be damaging to health, with tumours potentially being caused by the waves emitted by the handsets. There is also immense e-wastage. ? Legal – Difficult to patent mobile phone designs. Technology Infringement causes a lot of legal issues
?
SWOT
STRENGTHS
? ? ?
Very High Demand Low cost of production Technological advancement
WEAKNESS
? ? ?
Very short product life cycle Easily duplicable Environmental & health Issues
OPPORTUNITY
Fastest growing industries ? 3G & 4G ? VAS ? Third world countries ? Forward integration
?
THREATS
Internet ? Desruptive Technology
?
BCG – Mobile Handsets
Company
Market Share
Nokia(L) Samgung G’Five Micromax Source: IDC India 2010- Economic Times 36.3% 8.2% 7.3% 4.1%
Micromax
Samsung
G’Five
MG%
10%
Nokia
5X
1X
RMS
Business Strength Strong Medium Weak
High I-Phone Micromax Market Attractivenessa
Samsun g
Med
Nokia
Sony Erricson
Low
NOKIA- HISTORY
?
?
?
? ?
?
1985-Nokia was founded by Fredrik Idestam as a pulp mill 1904- The Finnish Rubber Works Ltd set up a factory in Nokia 1967-These two companies and Finnish Cable Works Ltd amalgamated in forming Nokia Corporation. Produced Rubber boots to Toilet Paper 1990- Different branches split into several companies or sold off The rubber works still operates in Nokia as Nokian Tyres and the paper mill as Georgia-Pacific Finland Oy.
NOKIA INDIA
• • • • • • • • •
1995 – Started Operations in India 1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110 2000 - First phone with Hindi menu (Nokia 3210) 2002 - First Camera phone (Nokia 7650) 2003 - First Made for India phone, Nokia 1100 2004 - Saral Mobile Sandesh, Hindi SMS 2004 - First Wi-fi Phone- Nokia Communicator (N9500) 2006 – Nokia manufacturing plant in Chennai Undisputed Leader for last 6 yrs
VIRU
?
?
? ?
Valuable- relationship and reputation Rare- strong retail network Unsubstitutable-Incremental innovation Non imitable- Huge range of products, Mass production,sturdy
VALUE CHAIN ANALYSIS OF NOKIA
Infrastructure
Has a state of art R&D facility and a fabricating unit in Chennai
Support vendors by financing
Reduced packaging cost & promote recycling
SUPPORT ACTIVITIES
Human Resource Management
Values human resources a lot
Employee satisfaction
Recruitement
Competitive Pay scales
Technology Development
Excellent R&D work
New Products Introductions
PRIMARY ACTIVITIES
Lowest Raw Material Cost in the Industry
High Technology based operations
Strong distribution network
Sepeate strategy to enter the all three segments
Customer Oriented
Inbound Logistics
Operations
Outbound Logistics
Marketing / Sales
Service
STRATEGIC ALLIANCE
Partnership with HCL for distribution channel for VAS. ? “Multi-faceted” business alliance with Reliance communications on Ovi Life Tools.
?
INTERNATIONAL STRATEGY
Manufacturing of cell phones in India ? Export of cell phones from the Chennai manufacturing centre to the asia pacific region
?
LEADERSHIP
Manufactures mobiles as per Indian need. ? More updated as per the customer needs ? Huge differentiation of products as per competitors
?
CORPORATE LEVEL STRATEGY
BUSINESS LEVEL STRATEGY
?
?
? ? ?
Create winning devices Embrace consumer internet service Deliver enterprise solution Build scale in networks Expand professional services
FUNCTIONAL LEVEL STRATEGY
•
The Nokia Way-emphasizes the speed and flexibility of decision-
making.
•
Flat-networked organization with a certain amount of
bureaucracy.
•
Equality of opportunities and employee participation.
•
The Nokia Values are Customer Satisfaction, Respect, Achievement, and Renewal.
SAMSUNG HISTORY
? ? ? ? ?
?
1969-71– Samsung sayno electrical founding period 1977-79 – The fast development Period 1986-89 – Changing the direction to exports 2000-02 – leading the digital convergence Revolution 2002-03 –Initiatives to become a world class company 2004-06 – Laying the foundation to become a world class company
CORPORATE LEVEL STRATEGY
CONSUMERS
? ? ? ? ? ? ? ?
BUSINESS
? ? ? ? ? ? ? ?
Mobile phones Televisions MP3 &audio/video Cameras & camcorders Computers & peripherals Professional displays Printers Home appliances
IT Business Hospitality solution Semi conductor LCD panel Telecommunication Set Top box Fiber optics Insurance
BUSINESS LEVEL STRATEGIES
Lower Cost
Overall Low-Cost Provider Strategy
Differentiation
Broad Differentiation Strategy
Target Market
Broad Range of Buyers
Best-Cost Provider Strategy (Samsung’s Strategy)
Narrow Buyer Segment or Niche
Focused Low-Cost Strategy
Focused Differentiation Strategy
VALUE CHAIN
Infrastructure
Has a state of art R&D facility and a fabricating unit in Seol.
Strong vendor relations Values human resources a lot Excellent R&D work Competitive Pay scales
SUPPORT ACTIVITIES
Human Resource Management
Self Distribution
Recruitments
Technology Development
Central computer linked with vendors
New Products Introductions
PRIMARY ACTIVITIES
Lowest Raw Material Cost in the Industry
High Technology based operations
Fast delivery
Air transportation
Very strong Brand. Known for its Quality. Rated in the top 20 brands of the world
Customer Oriented
Inbound Logistics
Operations
Outbound Logistics
Marketing / Sales
Service
VIRU
?
Valuable- R&D Rare-Self Distribution , Green Technology
?
?
Unsubstitutable- Financial support
Non imitable- Technological Expertise
?
INTERNATIONAL STRATEGIES OF SAMSUNG
STP APPROACH OF SAMSUNG
SEGMENTING
Segmenting is the process of dividing the market into segment based on customer characteristics & needs. Segmenting consist of: 1. Geographic segmentation 2. Demographic segmentation 3. Psychographic segmentation
30
TARGETING
Targeting is the process of focusing on a particular market with a particular product . ? LOCAL MARKET
? TEIR
1 CITIES ? TEIR 2 CITIES
?
NICHE MARKET
POSITIONING “DIGITAL TECHNOLOGY LEADER”
•
•
•
•
They initiated transformation from a lowend OEM into a world-class electronics company Samsung came up with exciting product portfolio. TOP Olympic Sponsor for the 2008 Beijing Olympics and Olympic Partner for the 2008 Olympic Torch Relay. Manavjit Singh Sandhu was its Olympic Brand Ambassador and launched the program 'Spread the Olympic Flame'
POSITIONING “DIGITAL TECHNOLOGY LEADER”
? ?
APPOINTS AAMIR KHAN AS ITS BRAND AMBASSADOR FOR MOBILE PHONES New, spunky, tagline - 'Next is What ?'. It is being used in all of 'Samsung Mobiles' communication material.
STRATEGIC ALLIANCE
To design a range of phones for both GSM and CDMA networks using the Microsoft Mobile Explorer ? Alliance with Giorgio Armani to produce high end luxury phone ? Alliance with ARM(U.K.) to become world leader in providing IC’s ? Manufacturing plant in India & china
?
SONY ERICSSON
SONY ERICSSON
?
?
?
Sony Ericsson Mobile Communications, a joint venture between Sony Corp and Ericsson(2001) It is a 50:50 joint venture between Ericsson AB and Sony Corporation. The collaboration between Ericsson and Sony started with the aim to provide the best mobile solutions, through combining Ericsson’s strong position within mobile technologies and Sony’s expertise in consumer electronics.
SONY ERICSSON
Sony ericsson presently holds the 5th position in mobile industry. ? The new venture employed 1000 employees from Sony and 2500 from Ericsson. ? Some of their major rivals are Nokia , Motorola, Samsung.
?
ALLIANCE STRATEGY
SONY
? ? ?
ERICSSON
?
?
Knowledge Add-on & apps. Strong financial support
?
?
communication technology interconnectivity with the providers. Lower cost structure for sony Re-enter U.S.
BUSINESS LEVEL STRATEGY
?
?
? ?
Communication Entertainment Brand Focus On Quality Focus on Smart Phones Build Value Market Share
VALUE CHAIN
Infrastructure
5 yr. technology deal with HP.
Leaner fitter and more responsive org.
SUPPORT ACTIVITIES
Human Resource Management
Technology Development
Upgrade technology to reduce co2 emissions
PRIMARY ACTIVITIES
Reverse logistics
Outsource manufac. To developing countries
Targeting value seeking customers
Quality service
Inbound Logistics
Operations
Outbound Logistics
Marketing / Sales
Service
VIRU
Valuable- Brand name ? Rare- Sound quality ? Costly to imitate- Greenheart Initiative ? Unsubstitutable- Camera
?
LAUNCH OBJECTIVES
?
Capture 10% market share in the US Smartphone market over a course of two years Extend Apple’s brand name and build an image of innovation, quality and value Satisfy the needs and wants of Smartphone customers and guarantee satisfaction through value delivery Manage a successful, focused launch without budgetary wastages
?
?
?
CORPORATE LEVEL STRATEGY (1)
Growth Strategies
Concentration
Diversification
External Mechanisms
Horizontal Growth
Concentric
Strategic Alliances
CORPORATE LEVEL STRATEGY (2)
Stability Strategies
Profit Strategies
COMPETITIVE STRATEGY
Market Dominance Strategy
Nicher
Innovation Strategies
Pioneers
BUSINESS LEVEL STRATEGY (1)
?
Broad-Differentiation Strategy
?
Offer more products to a broad of buyers
?
Deliver value to customers by differentiating
?
Focus-Differentiation Strategy
?
A narrow market niche
with unique needs
?
Premium Price to target high-end consumers , business market
BUSINESS LEVEL STRATEGY (2)
Specific Strategies
Dominate a niche
Outsource production process
Be an innovator
INTERNATIONAL ENTRY STRATEGY
Licensing
Reliance, Wal-Mart, Best Buy
VRIO
THANK YOU
doc_231295338.ppt
This is a presentation describing the Mobile phone industry.
MARKET SHARE
Company Name Nokia Samsung G’Five MS’09 54.1% 6.4% MS’10 36.3% 8.2% 7.3%
Micromax
4.8%
4.1%
30,000 Cr handset market
Source: IDC India 2010- Economic Times
PORTER MODEL
Bargaining power of Suppliers
moderate
Threat of new entrants -Govt. Approvals Very High
Industry Competition International and national players. - high
Bargaining Power of buyers - many options - highly price sensitive high
Threat of substitute. Low
PESTLE ANALYSIS
?
Political – As markets are deregulated, both operators and manufacturers are free to act independently of government intervention. In Countries like India and China where Partial regulations exist, government intervention does take place.
Economic – With incomes rising, people have more disposable income, which enables consumers to be more selective with their choice of mobile phone. ? Also the rates offered by service providers favours the use of mobile phones
?
Social – The rise of the so-called information society has made telecommunications increasingly more important to consumers, both in terms of work and leisure. ? Users are more aware of mobile phone handset choice and advancements due to increased information availability.
?
?
Technological – There have been many global advancements in technology such as MMS, Bluetooth, WAP, GSM, GPRS, cameras etc.
Environmental – There is a concern that the use of mobile phones could be damaging to health, with tumours potentially being caused by the waves emitted by the handsets. There is also immense e-wastage. ? Legal – Difficult to patent mobile phone designs. Technology Infringement causes a lot of legal issues
?
SWOT
STRENGTHS
? ? ?
Very High Demand Low cost of production Technological advancement
WEAKNESS
? ? ?
Very short product life cycle Easily duplicable Environmental & health Issues
OPPORTUNITY
Fastest growing industries ? 3G & 4G ? VAS ? Third world countries ? Forward integration
?
THREATS
Internet ? Desruptive Technology
?
BCG – Mobile Handsets
Company
Market Share
Nokia(L) Samgung G’Five Micromax Source: IDC India 2010- Economic Times 36.3% 8.2% 7.3% 4.1%
Micromax
Samsung
G’Five
MG%
10%
Nokia
5X
1X
RMS
Business Strength Strong Medium Weak
High I-Phone Micromax Market Attractivenessa
Samsun g
Med
Nokia
Sony Erricson
Low
NOKIA- HISTORY
?
?
?
? ?
?
1985-Nokia was founded by Fredrik Idestam as a pulp mill 1904- The Finnish Rubber Works Ltd set up a factory in Nokia 1967-These two companies and Finnish Cable Works Ltd amalgamated in forming Nokia Corporation. Produced Rubber boots to Toilet Paper 1990- Different branches split into several companies or sold off The rubber works still operates in Nokia as Nokian Tyres and the paper mill as Georgia-Pacific Finland Oy.
NOKIA INDIA
• • • • • • • • •
1995 – Started Operations in India 1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110 2000 - First phone with Hindi menu (Nokia 3210) 2002 - First Camera phone (Nokia 7650) 2003 - First Made for India phone, Nokia 1100 2004 - Saral Mobile Sandesh, Hindi SMS 2004 - First Wi-fi Phone- Nokia Communicator (N9500) 2006 – Nokia manufacturing plant in Chennai Undisputed Leader for last 6 yrs
VIRU
?
?
? ?
Valuable- relationship and reputation Rare- strong retail network Unsubstitutable-Incremental innovation Non imitable- Huge range of products, Mass production,sturdy
VALUE CHAIN ANALYSIS OF NOKIA
Infrastructure
Has a state of art R&D facility and a fabricating unit in Chennai
Support vendors by financing
Reduced packaging cost & promote recycling
SUPPORT ACTIVITIES
Human Resource Management
Values human resources a lot
Employee satisfaction
Recruitement
Competitive Pay scales
Technology Development
Excellent R&D work
New Products Introductions
PRIMARY ACTIVITIES
Lowest Raw Material Cost in the Industry
High Technology based operations
Strong distribution network
Sepeate strategy to enter the all three segments
Customer Oriented
Inbound Logistics
Operations
Outbound Logistics
Marketing / Sales
Service
STRATEGIC ALLIANCE
Partnership with HCL for distribution channel for VAS. ? “Multi-faceted” business alliance with Reliance communications on Ovi Life Tools.
?
INTERNATIONAL STRATEGY
Manufacturing of cell phones in India ? Export of cell phones from the Chennai manufacturing centre to the asia pacific region
?
LEADERSHIP
Manufactures mobiles as per Indian need. ? More updated as per the customer needs ? Huge differentiation of products as per competitors
?
CORPORATE LEVEL STRATEGY
BUSINESS LEVEL STRATEGY
?
?
? ? ?
Create winning devices Embrace consumer internet service Deliver enterprise solution Build scale in networks Expand professional services
FUNCTIONAL LEVEL STRATEGY
•
The Nokia Way-emphasizes the speed and flexibility of decision-
making.
•
Flat-networked organization with a certain amount of
bureaucracy.
•
Equality of opportunities and employee participation.
•
The Nokia Values are Customer Satisfaction, Respect, Achievement, and Renewal.
SAMSUNG HISTORY
? ? ? ? ?
?
1969-71– Samsung sayno electrical founding period 1977-79 – The fast development Period 1986-89 – Changing the direction to exports 2000-02 – leading the digital convergence Revolution 2002-03 –Initiatives to become a world class company 2004-06 – Laying the foundation to become a world class company
CORPORATE LEVEL STRATEGY
CONSUMERS
? ? ? ? ? ? ? ?
BUSINESS
? ? ? ? ? ? ? ?
Mobile phones Televisions MP3 &audio/video Cameras & camcorders Computers & peripherals Professional displays Printers Home appliances
IT Business Hospitality solution Semi conductor LCD panel Telecommunication Set Top box Fiber optics Insurance
BUSINESS LEVEL STRATEGIES
Lower Cost
Overall Low-Cost Provider Strategy
Differentiation
Broad Differentiation Strategy
Target Market
Broad Range of Buyers
Best-Cost Provider Strategy (Samsung’s Strategy)
Narrow Buyer Segment or Niche
Focused Low-Cost Strategy
Focused Differentiation Strategy
VALUE CHAIN
Infrastructure
Has a state of art R&D facility and a fabricating unit in Seol.
Strong vendor relations Values human resources a lot Excellent R&D work Competitive Pay scales
SUPPORT ACTIVITIES
Human Resource Management
Self Distribution
Recruitments
Technology Development
Central computer linked with vendors
New Products Introductions
PRIMARY ACTIVITIES
Lowest Raw Material Cost in the Industry
High Technology based operations
Fast delivery
Air transportation
Very strong Brand. Known for its Quality. Rated in the top 20 brands of the world
Customer Oriented
Inbound Logistics
Operations
Outbound Logistics
Marketing / Sales
Service
VIRU
?
Valuable- R&D Rare-Self Distribution , Green Technology
?
?
Unsubstitutable- Financial support
Non imitable- Technological Expertise
?
INTERNATIONAL STRATEGIES OF SAMSUNG
STP APPROACH OF SAMSUNG
SEGMENTING
Segmenting is the process of dividing the market into segment based on customer characteristics & needs. Segmenting consist of: 1. Geographic segmentation 2. Demographic segmentation 3. Psychographic segmentation
30
TARGETING
Targeting is the process of focusing on a particular market with a particular product . ? LOCAL MARKET
? TEIR
1 CITIES ? TEIR 2 CITIES
?
NICHE MARKET
POSITIONING “DIGITAL TECHNOLOGY LEADER”
•
•
•
•
They initiated transformation from a lowend OEM into a world-class electronics company Samsung came up with exciting product portfolio. TOP Olympic Sponsor for the 2008 Beijing Olympics and Olympic Partner for the 2008 Olympic Torch Relay. Manavjit Singh Sandhu was its Olympic Brand Ambassador and launched the program 'Spread the Olympic Flame'
POSITIONING “DIGITAL TECHNOLOGY LEADER”
? ?
APPOINTS AAMIR KHAN AS ITS BRAND AMBASSADOR FOR MOBILE PHONES New, spunky, tagline - 'Next is What ?'. It is being used in all of 'Samsung Mobiles' communication material.
STRATEGIC ALLIANCE
To design a range of phones for both GSM and CDMA networks using the Microsoft Mobile Explorer ? Alliance with Giorgio Armani to produce high end luxury phone ? Alliance with ARM(U.K.) to become world leader in providing IC’s ? Manufacturing plant in India & china
?
SONY ERICSSON
SONY ERICSSON
?
?
?
Sony Ericsson Mobile Communications, a joint venture between Sony Corp and Ericsson(2001) It is a 50:50 joint venture between Ericsson AB and Sony Corporation. The collaboration between Ericsson and Sony started with the aim to provide the best mobile solutions, through combining Ericsson’s strong position within mobile technologies and Sony’s expertise in consumer electronics.
SONY ERICSSON
Sony ericsson presently holds the 5th position in mobile industry. ? The new venture employed 1000 employees from Sony and 2500 from Ericsson. ? Some of their major rivals are Nokia , Motorola, Samsung.
?
ALLIANCE STRATEGY
SONY
? ? ?
ERICSSON
?
?
Knowledge Add-on & apps. Strong financial support
?
?
communication technology interconnectivity with the providers. Lower cost structure for sony Re-enter U.S.
BUSINESS LEVEL STRATEGY
?
?
? ?
Communication Entertainment Brand Focus On Quality Focus on Smart Phones Build Value Market Share
VALUE CHAIN
Infrastructure
5 yr. technology deal with HP.
Leaner fitter and more responsive org.
SUPPORT ACTIVITIES
Human Resource Management
Technology Development
Upgrade technology to reduce co2 emissions
PRIMARY ACTIVITIES
Reverse logistics
Outsource manufac. To developing countries
Targeting value seeking customers
Quality service
Inbound Logistics
Operations
Outbound Logistics
Marketing / Sales
Service
VIRU
Valuable- Brand name ? Rare- Sound quality ? Costly to imitate- Greenheart Initiative ? Unsubstitutable- Camera
?
LAUNCH OBJECTIVES
?
Capture 10% market share in the US Smartphone market over a course of two years Extend Apple’s brand name and build an image of innovation, quality and value Satisfy the needs and wants of Smartphone customers and guarantee satisfaction through value delivery Manage a successful, focused launch without budgetary wastages
?
?
?
CORPORATE LEVEL STRATEGY (1)
Growth Strategies
Concentration
Diversification
External Mechanisms
Horizontal Growth
Concentric
Strategic Alliances
CORPORATE LEVEL STRATEGY (2)
Stability Strategies
Profit Strategies
COMPETITIVE STRATEGY
Market Dominance Strategy
Nicher
Innovation Strategies
Pioneers
BUSINESS LEVEL STRATEGY (1)
?
Broad-Differentiation Strategy
?
Offer more products to a broad of buyers
?
Deliver value to customers by differentiating
?
Focus-Differentiation Strategy
?
A narrow market niche
with unique needs
?
Premium Price to target high-end consumers , business market
BUSINESS LEVEL STRATEGY (2)
Specific Strategies
Dominate a niche
Outsource production process
Be an innovator
INTERNATIONAL ENTRY STRATEGY
Licensing
Reliance, Wal-Mart, Best Buy
VRIO
THANK YOU
doc_231295338.ppt