1、CONFIDENTIALPC Competitor Analysis:IBMOVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK1. Background information4. Value chain strategy Location Number of Managementemployees team Era analysis Starting yearFocus on Marketing, advertising and promotion Distribution (channel and sales force)2. Strategy5. Orga

2、nization and ownership Mission Vision Corporate strategy Market position Organization structure Ownership structure3. Product/market6. Financial performance Key product offerings Key customers Pricing Sales ProfitBACKGROUND INFORMATION1. Background information Location Number of Managementemployees

3、team Era analysis Starting year4. Value chain strategy Focus on Marketing, advertising and promotion Distribution (channel and sales force)2. Strategy5. Organization and ownership Mission Vision Corporate strategy Market position Organization structure Ownership structure3. Product/market6. Financia

4、l performance Key product offerings Key customers Pricing Sales ProfitIBM HAS GRADUALLY EXPANDED ITS PRESENCE IN CHINABackground informationLocationBeijingManagingdirectorZhou WeikunStarting year 1984 (representative office) 1992 (IBM China Co. Ltd.)Number of employeesOver 3000Key milestones Set up

5、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* IBMs purchase in china has increased from 30M USD in 1993

6、to 1B USD in 1998 Source: Literature researchBACKGROUND INFORMATION1. Background information Location Number of Managementemployees team Era analysis Starting year4. Value chain strategy Focus on Marketing, advertising and promotion Distribution (channel and sales force)2. Strategy5. Organization an

7、d ownership Mission Vision Corporate strategy Market position Organization structure Ownership structure3. Product/market6. Financial performance Key product offerings Key customers Pricing Sales ProfitGLOBALLY, IBM HAS DECIDED TO EXIT PC BUSINESS GRADUALLY INTHE NEXT SEVEN YEARSMission To lead in t

8、he creation, development and manufacturing of the industrys most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics To translate these advanced technologies into value for our customers through our professional solutions

9、and services businesses worldwideVision To be no. 1 player globally in information products, solution provider and service providerStrategy Shift product-oriented strategy to industry-oriented development strategy Define E-commerce as focus of IBM business in China Position PC as part of EoN (edge o

10、f the net) concept instead of a standalone product Gradually exist* PC business in the next seven years globally by selling it to Dell with Dells promise to purchase IBMs components in return2001 target Increase revenue by 20%* IBMs PC business showed surprising strength in revenue growth and profit

11、ability in the September quarter last year, which would lessen the urgency to exit this business in the near termSource: Literature researchIBM KEPT ITS MARKET POSITION IN NOTEBOOK, BUT ITS DESKTOP PCBUSINESS FAILED TO CATCH UP WITH TOTAL MARKET GROWTHIBMs market shareDesktop PC market sharePercent

12、of units shipment (m)Growth ratepercentNotebook market sharePercent of units shipment (m)Growth ratepercent7.56.421.8100%=4.56.644.8100%=2.94.868.562.951.64.05.06.129.822.1OthersIBMGreat Wall FounderLegend20.313.987.6125.494.7Others28.917.517.1Founder Dell AcerLegend IBM

13、Toshiba24.9170.6193.5121.6128.565.018.815.221.599009900Source: IDCPRODUCT/MARKET1. Background information4. Value chain strategy Location Number of Managementemployees team Era analysis Starting year Focus on Marketing, advertising andpromotion Distribution (channel and sales force)2. Strategy5. Org

14、anization and ownership Mission Vision Corporate strategy Market position Organization structure Ownership structure3. Product /market6. Financial performance Key product offerings Key customers Pricing Sales ProfitIBM IS RIGIDLY AND AGGRESSIVELY IMPLEMENTING TOTAL SOLUTIONAND SERVICE PROVIDER STRAT

15、EGY IN PRODUCT OFFERINGKey product offeringsProduct categoryProduct categoryDesktop PCNotebookSource: literature research NetVista commercial PC NetVista A40 NetVista A10 NetVista A20-6269BSC NetVista A20-634587C/634586C NetVista Multi-media PC NetVista X40i NetVista A60i NetVista A40i NetVista A20i

16、-21949DC/219415C NetVista A20i-219755C/21978DC NetVista A10i ThinkPad A series ThinkPad T series ThinkPad X series ThinkPad i seriesIBM IS PARTICULARLY STRONG IN GOVERNMENT AND SMES, BUT WEAKIN HOME AND EDUCATION, THE TYPICAL LOCAL PLAYERS TERRITORIESSales by customer segmentsPercent of units shipme

17、nt (000s), 2000Desktop PC marketNotebook market100%=Small office Small business EducationMedium busineGovernmentLarge business HomeSource: IDC2646,564ss23.814.714.922.715.335.417.715.7IBMMarket average100%=31.436.923.523.612.32.33.73.5Small office Home Educati

18、onSmall businessLarge businessMedium businessGovernment83484IBMMarket averageIBM IS A DOMINANT HIGH-END PLAYER, GRASPING OVER 20% MARKET SHARE OF HIGH-END DESKTOP PC AND OVER 50% OF PRIMIUM NOTEBOOK MARKETSales by customer segmentsPercent of units shipment (M)Desktop PC market, 1999Notebook market,

19、2000IBMs market share100% =Others100% =Others70.08Dell Compaq Great Wall IBMHPFounder LegendPrice brandLowMedium43.62.718.42.85.1 05.725.619.019.51.8HighFounderDell Ace rToshibaIB MLegend24.21.46.656

20、.50.948.824.513.311.113.522.712.110.4LowMediumHighPremiumUSDSource: IDC, interview(0-1k)(1-1.5k)(1.5k)(0-2k)(2-2.5k)(2.5-3.5k) (3.5K)VALUE CHAIN STRATEGY1. Background information Location Number of Managementemployees team Era analysis Starting year4. Value chain strategy Focus on Marketi

21、ng, advertising and promotion Distribution (channel and sales force)2. Strategy5. Organization and ownership Mission Vision Corporate strategy Market position Organization structure Ownership structure3. Product/market6. Financial performance Key product offerings Key customers Pricing Sales ProfitI

22、BM HAS SET CHINA AS ONE OF KEY BASES IN ITS GLOBAL R&DR&DGlobal research 8 global research basesbases U.S. (3) Japan (1) Switzland (1) China (1) Isreal (1) India* (1) Total staff around 4,000China R&D base Established in 1995 (IBM is one of the first MNCs that set up R&D center in China) Staffed ove

23、r 100 people to research center and over 200 people to development center Research focuses are China specific technology such as language recognition, hand-writing input and computerized translation technology application in China-specific environment and industry solution; development focus is curr

24、ently application software* under construction Source: IDC, interviewIBM WILL NOT FURTHER INVEST IN BUILDING UP PC MANUFACTURINGJVS IN CHINAManufacturingStrategy No future investment to setup more PCmanufacturing JVs in china Emphasis on OEM approachManufacturing base Great Wall IT products Shenzhen

25、 Co., Ltd. (IBMs sole PC production base in China)OEM efforts OEM mostly to Taiwanese players, such asAcerSource: literature research, interviewIBM IS PUSHING TOWARD FLATTENED CHANNEL STRUCTURE ANDSECOND AND THIRD TIER CITIES IN GEOGRAPHIC COVERAGESales and distributionGuiding principlesChange progr

26、am Push for flattened channel structure Expand to second/third tier geographic areas Increase sales revenue by 20% in 2001 “Blue star plan”Distribution channelCurrent Over 2,000 dealers No direct channel management by IBMTarget 3,000 4,000 dealers Direct and strong channel management and control by

27、IBMCity coverage Over 30 cities Over 200 citiesSource: literature research, interviewIBM EMPHASIZES AND FOCUSES ON TOTAL SOLUTION AND SERVICEPROVISIONTotal solution and serviceTarget To be No. 1 globally as a total solution provider and service providerInitiatives “Blue V project” Started global imp

28、lementation in March, 2001 Targets at NetGens, companies that conduct business mainly on the Internet platform Provides customers hardware, software, consulting, training, sales and marketing, financing, out-sourcing, and potential partnership opportunities “Hardware + Software + Service”Competition

29、 in the next three years is based on the strengths in hardware and software. In the 5 years time, service will be another key success factor Zhou Weikun, Managing Director, IBM ChinaSource: literature research, interviewORGANIZATION AND OWNERSHIP1. Background information4. Value chain strategy Locat

30、ion Number of Managementemployees team Era analysis Starting year Focus on Marketing, advertising andpromotion Distribution (channel and sales force)2. Strategy5. Organization and ownership Mission Vision Corporate strategy Market position Organization structure Ownership structure3. Product /market

31、6. Financial performance Key product offerings Key customers Pricing Sales ProfitIBM FOLLOWS CHINA HEADQUARTER HOLDING P&L RESPONSIBILITYAND CUSTOMER-ORIENTATION PRACTICEResearch centerNote- bookDesktop PCIGSTSMBPCServerTechno- logy groupSoftware groupIBM China Co., ltdOrganizationKey take

32、aways IBM China headquarter holds the P&L responsibility of all the business groups. The only exception is China Research center that reports directly to R&D global center IBM embodies customer-orientation in organization structure. The .com and telecom are to provide total solution to target customers “Virtual team” practice facilitates coordination among different business groups serving same customersSource: literature research, interviewIBM HOLDS THE MAJORITY OF ITS PC MANUFACTURIN