069麥肯錫—nokia制勝美國市場報告

1、CONFIDENTIAL,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 &a

2、mp; Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.,Discussion document,December 2000,Nokia Case Study: Winning in the U.S.,NJ-26240

3、8.756/001031NdkocHR1,1,FINGERPRINT – NOKIA,Rationale,,Focused on high growth categories (e.g., mobile phones, digital),Anticipated shift to digital technology in the U.S. before competitors and directed resources to opti

4、mize opportunity; tailors products to target customers (e.g., fashion covers for younger segment),Some difficulty to attracting top-tier local senior management due to glass ceiling (e.g., all senior leadership in Finnis

5、h0; Finnish managers used to manage U.S. operations,Succeeds in attracting top engineers because of attractive products,Local managers have limited autonomy and accountability exists at the unit level, but head office re

6、tains final input,Difficulty translating “The Nokia Way” to U.S. (“The culture doesn’t have the same richness or value as it does in Europe”),Devotes sufficient resources to local organization to win in market (e.g., pro

7、vided resources for U.S. to win in mobile phone segment),Outsources non-core technologies (e.g., microprocessors from Intel, components form Motorola) and uses standard components to save on R&D spend and react fast

8、er to changing technologies than its competitors; leverages partnerships for more efficient R&D (e.g., JV with Cisco, Geoworks, HP),N/A,Creates broad distribution reach through numerous, innovative relationships with

9、 retailers and distributors (e.g., Sears, AT&T wireless services,Tandy),Develops and launches innovative marketing campaigns (e.g., first to target consumers rather than professionals),Successfully allies and acquire

10、s to gain capabilities (e.g., joint venture with Tandy for distribution, acquisition of Mobira to enter promising mobile phone area),HighLow,Encourages sharing of best practices but has not been very successful at doing

11、 so to date,NJ-262408.756/001031NdkocHR1,2,,,NOKIA,Key facts Largest 1 -3 year revenues growth of competitorsLargest mobile phone manufacturer and second largest provider worldwide (behind Ericsson),Products Mobile ph

12、onesGSM/DSC networks,CompetitorsEricssonMotorola,Timeline,,1865,1990s,Developed into conglomerate (flooring, TV, footwear, etc.) until refocusing on high growth mobile phone segment in late 1980s and 1990s,Divests no

13、n-core businesses,1995,1999,Americas,ROW,EUR,Revenues$ Billions,Stock appreciation (1998-99),Nokia,S&P,S&P cell and wireless index,CAGR %,Capabilities First to use mass marketers as distributors (e.g., sellin

14、g mobile phones in Radio Shack)Uses alliances for distribution channels (e.g., AT&T Wireless Services, Sears)Adopts consumer rather than professional focus in marketing, unlike competitorsUses alliances in R&D

15、 to grow development capabilities (HP, Cisco, Geoworks),Organization Autonomy provided to senior leadership in local subsidiariesTop management is all Finnish; obstacle to hiring top U.S. talentStrong emphasis on co

16、rporate values and culture with “The Nokia Way” – teamwork, innovation, production; difficult to implement in U.S.Excellent opportunities for advancement-fast career tracks, early responsibility, rotation programsHiera

17、rchy and bureaucracy reducedYoung, innovative, non-rigid leadership styleRated in Fortune top 100 firms to work for in the U.S.,ProductGrew mobile phone segment from 16% of total sales in 1991 to 66% in 1999Allied to

18、 gain product expertise (e.g., Motorola to standardize technology, Cisco and HP to develop network products)Technology design innovator; first to market with many product innovations Tailored product to target key cus

19、tomers (e.g., phones with fashionable, changeable covers to attract young segment),Background,Levers for success,19.8,6.2,Founded as paper mill,58% CAGR,Enters U.S. through Tandy JV,Grows mobile business in U.S.,1988,19

20、83,Acquires Mobira,1981,Operates as a conglomerate,1960s,NJ-262408.756/001031NdkocHR1,3,,CONTENTS,Company overviewU.S. market entry strategyProductsCapabilitiesOrganization,NJ-262408.756/001031NdkocHR1,4,NOKIA COMPA

21、NY BACKGROUND,Founded 1865, in Finland, as a pulp and paper millEntered U.S. in 1983, when cellular service was just launching in the U.S.Global employees 55,260; in U.S. 10,500CEO: Jorma Ollila (Finnish)Most senior

22、 managers for U.S.: Kari-Peleka Wilska, President of Americas Rich Geruson, Head of USA Sales and Marketing for Nokia Mobile PhonesKey divisions: Mobile Phones, Nokia Networks, Communications ProductsMarket cap: $

23、193.3 billion (as of October 27,2000)Key industry of focus: Mobile phones (65% of 1999 total sales)Number 1 mobile phone maker globallyNumber 2 GSM/DCS mobile phone networks provider globallyCompetitors: Motorola,

24、Ericsson,NJ-262408.756/001031NdkocHR1,5,COMPANY EVOLUTION,Source:International Directory of Company Histories,,1800sFounded 1865 in Finland as pulp and paper manufacturerConstructs own power plants as industry becomes

25、 energy intensive,1960sMerges with Finnish Rubber Works and Finnish Cable Works in 1966 as part of diversification planBegins to design and manufacture data processing, industrial automation, and communications systems

26、Nokia conglomerate consists of integrated cable operations, electronics, tires, and rubber footwearMakes first public share offering in 1966,1970sOil crisis in 1973 reduces reliance on exports (timber products and mac

27、hinery) to Soviet Union (12% of sales)Kari Kairamo, appointed CEO in 1975, realizes that for Nokia to grow it has to expand abroad; expands Nokia in Scandinavia and EuropeSells switching systems under license from allo

28、cated (French)Helps design world’s first international cellular system in the 1970s,1980sAcquires nearly 20 electronics companies over the decade and completes key mergersAcquires Mobira (Finnish mobile phone company)

29、 in 1981, to gain foothold in growing mobile phone segmentMerges Salora (largest TV manufacturer in Scandinavia) and Luxor (Swedish-state owned electronics and computer firm) in 1984Through the ‘80s, manufactures OEM e

30、quipment for Hitachi; Ericsson, Northern Telecom, Granada, IBM Enters U.S., in 1983 through JV with Tandy Corporation to sell Nokia phones under Tandy nameLaunches first product (mobile phones) marketed internationally

31、 under Nokia brand name in 1986,,Nokia has evolved substantially since its foundation, moving from a Finnish paper mill, to a diversified Finnish conglomerate to a global wireless leader.,1990sAggressively grows mobile

32、phone business in the U.S.Buys Tandy’s share of JV in 1993 to fully own factories in U.S. and South KoreaSigns significant contracts to increase distribution channels (e.g., AT&T Wireless Services),,Conglomerate ph

33、ase,,Expands in Scandinavia and Europe,Acquires and allys into mobile phones and U.S.,,Allys to strengthen U.S. position,,NJ-262408.756/001031NdkocHR1,6,,Time,,,,,,Horizon 1Drive core growth,Horizon 2Build momentum of

34、emerging growth engines,Horizon 3Secure future options,Profit,“We are now benefiting from the visionary technological solutions we made years ago; the long-term success of our company requires constant agility in positi

35、oning ourselves in this dynamic industry.”– Jorma Ollila, CEO,“To identify what is required in the long term you need the competencies and the products; getting the right focus is the tough part.”– Jorma Ollila, CEO,

36、“The CEO has to understand the dynamics of each business the company is in; in order to understand where the future lies.”– Jorma Ollila, CEO,Source: Annual reports; press clippings,LEADERSHIP COMMITMENT ACROSS THREE H

37、ORIZONS,,When planning Nokia’s future development, CEO Jorma Ollila distinguishes clearly between three waves. The first wave emphasizes the continuous exploitation of Nokia’s core businesses. The second wave requires

38、the identification of capabilities and products that will have impact on Nokia’s success in the immediate future. Finally, the third wave determines the company’s future direction through setting aspirations and placing

39、 options.,NJ-262408.756/001031NdkocHR1,7,,PLANNING ACROSS THREE TIME HORIZONS,Profit,Horizon 1,Horizon 2,Horizon 3,Drive core growth,Build momentum of emerging growth engines,Secure future options,Products,? Boost mobile

40、 phone sales through brand-building efforts? Make product extensions such as “Swatch-like neon-colored mobile phones”,? Expand product range through new features and complementary accessories, such as phone covers or di

41、fferent battery sizes,? Create R&D alliances for product development in wireless data transmission and terminal technology,? Increase sales of fixed and cellular network to public telecom operators,? Win private tel

42、ecom operators as new customers? Launch first wireless products (e.g., Nokia 9000 Communicator, a portable with phone, fax, email, Internet access all in one),Markets,? Further penetrate Scandinavia, parts of Western Eu

43、rope,? Improve positioning in Asia/Pacific, US, other EU-countries through stronger distribution network,? Prepare for full deregulation of telecom industry and entry into remaining markets,,Time,,,,,Horizon 1Drive core

44、 growth,Horizon 2Build momentum of emerging growth engines,Horizon 3Secure future options,Source: McKinsey analysis,NJ-262408.756/001031NdkocHR1,8,SENIOR MANAGEMENT,Source:Annual Report,Spent 6 months in the U.S. in

45、 1999,Spends 50% of his time in Silicon Valley,NJ-262408.756/001031NdkocHR1,9,,,* As of January 2000Source:Epsicom Business Intelligence,NOKIA ORGANIZATIONAL STRUCTURE,,Head office functionsCFOInternational Trad

46、e PolicyTechnologyResearch CenterGeneral CounselHuman ResourcesCommuni-cationsInternational Trade Affairs,Nokia Networks,Nokia Mobile Phones,Nokia Communications Products,Nokia Multimedia Terminals,Nokia Industrial

47、 Electronics,Nokia Ventures,Nokia Research Center,Nokia Internet Communications,Nokia Ventures Fund,Internal Venturing Unit,Nokia Wireless Business Communications,Nokia Wireless Software Solutions,Nokia IP Application an

48、d Connectivity Platform,NJ-262408.756/001031NdkocHR1,10,World telecom equipment index,S&P 500,Nokia,NOKIA STOCK PRICE COMPARISON,$ Thousands,Source:Data stream,Value,1988,1989,1990,1991,1992,1993,1994,1995,1996,1997

49、,1998,1999,,Nokia clearly outperforms the market and its competition.,NJ-262408.756/001031NdkocHR1,11,Asia-Pacific,Europe,1995,1996,1997,1998,1999,NOKIA SALES BY REGION,Euro Millions,,Nokia’s sales in North America have

50、grown dramatically in the late 90’s with a CAGR of 58 percent, while European contribution to sales has diminished steadily shrinking.,North America,6,191,6,613,8,849,13,326,19,772,CAGRPercent,34,37,26,58,Source:Annual

51、 reports,100% =,NJ-262408.756/001031NdkocHR1,12,ROW,Finland(676),1991 100% = EURO 2,600,ROW,1999 100% = EURO 19,772,Finland (395),,Nokia’s sales in Finland have fallen dramatically as a percentage of total sales.,,Sou

52、rce:Annual reports,,Euro Millions,NOKIA’S FINLAND SALES COMPARED TO REST OF WORLD,NJ-262408.756/001031NdkocHR1,13,NOKIA’S INDUSTRY FOCUS AND PRODUCT MIX,Euro Millions,Source:Annual reports,Sales by product,Consumer ele

53、ctronics,Cables and machinery,Mobile products,Telecommuni-cations,1991 100% = EURO 2,600,Basic industries,Network solutions,Mobile products,1999 100% = EURO 19,772,Home, multimedia, and other,Nokia’s productsMobile pr

54、oducts – full range of digital and analog cellular phones, wide-area pagers, as well as accessories and components for mobile phonesNetwork solutions – telecommunication systems and equipment for both fixed and mobile n

55、etworks; principal products include digital exchanges, transmission systems, and cellular systems, which are sold to PTT, public utilities, new operators, and cable TV companiesHome, multimedia and other – includes PC a

56、nd workstation monitors, as well as interactive digital satellite and cable terminals,,In 1998, Nokia became the world’s largest manufacturer of mobile phones, selling 40.8 million handsets, and grew sales grew 51 percen

57、t from 1998 to 1999.,“Three years ago wedecided to create a telecom-orientedcompany. We have been able toimplement the changes faster thanwe expected.” – Jorma Ollila, Financial Times, 09/07/1995,NJ-262408.756/001

58、031NdkocHR1,14,SUBSIDIARY LOCATIONS AND RESEARCH CENTERS,,(6),,,,,,,,,,Nokia covers an expansive geography.,,NJ-262408.756/001031NdkocHR1,15,,CONTENTS,Company overviewU.S. market entry strategyProductsCapabilitiesOrg

59、anization,NJ-262408.756/001031NdkocHR1,16,STORYLINE,At the beginning of the 1980’s Nokia was still a diversified company, relying predominantly on Europe (particularly Scandinavia) to drive salesHowever, the company rea

60、lized that significant growth would be dependent on building a major presence in the U.S. market, in high return segmentsTo do so they acquired Mobira (Finland) in 1981 to gain a foothold in the rapidly emerging mobile

61、phone sector. They rapidly grew this opportunity in the U.S. through a series of OEM relationships (GTE, Delco, Southwestern Bell, Bell Atlantic) and a joint venture with Tandy Corporation in 1983Nokia launched their o

62、wn brand mobile phone in 1986 and pursued aggressive branding and alliance strategies (e.g., Rooftop Communications, Compaq, AT&T Wireless Services) to solidify their presence,NJ-262408.756/001031NdkocHR1,17,,Nokia w

63、as the first player to use mass market distribution channels for telecommunications equipment.,Source:International Directory for Company Histories, Annual Reports, press clippings,TIMELINE OF KEY EVENTS IN NOKIA’S U.S.

64、 BUSINESS,NJ-262408.756/001031NdkocHR1,18,,CONTENTS,Company overviewU.S. market entry strategyProductsCapabilitiesOrganization,NJ-262408.756/001031NdkocHR1,19,,,,Nokia made big bets as to which technologies would eme

65、rge, redirecting resources and company focus to emphasize these categories.,PRODUCT STRATEGY,“The choice of focus is extremely important. We constantly strive to make sure we are focused on targeted markets in which t

66、he growth rate is much higher than that of the total market, Nokia’s aim is to grow somewhat faster than the targeted markets do.”– Matti Alahuta, President, Mobile Phones,NJ-262408.756/001031NdkocHR1,20,,Nokia’s acqu

67、isitions in the U.S. were primarily to broaden its product capabilities.,PRODUCT ACQUISITIONS,Source:Securities Data Corporation and press clippings,NJ-262408.756/001031NdkocHR1,21,,CONTENTS,Company overviewU.S. market

68、 entry strategyProductsCapabilitiesOrganization,NJ-262408.756/001031NdkocHR1,22,,Alliances/partnerships providea large portion of Nokia capabilities,Nokia has developed a strong capability platform in the U.S.; prima