麦肯锡三星战略6TOSHIBA课件.ppt

CONFIDENTIALBrown Goods and PC Competitor Analysis: ToshibaSAMSUNG 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.麦肯锡三星战略6-TOSHIBAOVERVIEW 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•Key product offerings•Market position1麦肯锡三星战略6-TOSHIBABACKGROUND 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•Key product offerings•Market position2麦肯锡三星战略6-TOSHIBASource: Toshiba website, Lit searchBACKGROUND INFORMATION – TOSHIBAEstablished:1875 by Hisashige TanakaPresident & CEO:Tadashi OkamuraTotal Assets:US$51,578 millionShareholders’ Equity: US$10,054 millionNumber of employees: 190,000 worldwide(As of September 30, 2000)Domestic Plants, Branches OfficesAnd Other Facilities:Production facilities: 25Branch offices: 35Sales offices: 23Overseas Plants, Branches Officesand Other Facilities:Offices: 10Manufacturing companies: 42Subsidiaries & affiliates: 723麦肯锡三星战略6-TOSHIBASource: Company website, Lit searchBACKGROUND INFORMATION – DALIAN TOSHIBA TELEVISION, LTDLocation:Dalian, Liaoning ProvinceStarting year:1996Registered Capital:US$30 millionUnit Sold: color TV 1 million sets, 50% export (Year 2000)Joint Venture PartnersTypeForeign Juristic Person's SharesForeign Juristic Person's Shares•Toshiba•Toshiba (China) Co.•Dalian Daxian (Group) Co., Ltd.Number of employees: 2,000Products: 21’ – 34’ color TV (CRT, Projection, Flat)Domestic Juristic Person's Shares4麦肯锡三星战略6-TOSHIBASource: Company Report, Lit searchTOSHIBA’S CORPORATE MANAGEMENT TEAMPresident & CEOTadashi OkamuraCorporate projectCorporate staffCorporate support services iValue Creation Company CEO: Tsutomu Kawada e-Solutions Company CEO: Hiroo Okuhara Social Infrastructure Systems Company CEO: Tsuyoshi Kimura Digital Media Network Company CEO: Atsutoshi Nishida Mobile Communications Company CEO: Tetsuya Mizoguchi Power Systems & Services Company CEO: Toshiyuki Oshima Semiconductor Company CEO: Takeshi Nakagawa Display Devices & Components Company CEO: Eisaburo Hamano Medical Systems Company CEO: Masamichi Katsurada Home Appliances Company CEO: Makoto Nakagawa5麦肯锡三星战略6-TOSHIBASource: Company website, Literature SearchHISTORY OF TOSHIBA6麦肯锡三星战略6-TOSHIBASource: Literature Search; McKinsey AnalysisTOSHIBA’S DEVELOPMENT WENT THROUGH THREE STAGESOrganization structureCorporate strategyProduct Development & Technology1875-1939•Two Japanese electrical equipment manufacturers merged in 1939 to create Toshiba. •Technological innovation accounted for the companies’ successes. One of the founders was the so-called Edison of Japan.•Main products included transformers, electric motors, light bulbs, radio receivers, and cathode-ray tubes.1978- PRESENT1939-1978•The company grew rapidly and became a market leader in the electrical and electronic industry. However, the organization became more bureaucratic.•The company continued to be innovative in the early years, producing many firsts in the industry. However, It lost its innovator image in the 70’s .•Numerous leading products in the electrical and electronics areas. Examples includes Japan’s first vacuum cleaner, first fluorescent lamp, first radar, etc.•Toshiba shifted direction by investing heavily in IT segment. The organization became increasingly global, employing 190,000 employees world-wide with annual sales over ¥ 5 trillion.•IT focus, diversification, innovation and globalization are four key elements of Toshiba’s corporate strategy. •Toshiba is intensively focusing on IT-related business (i.e. telecom and internet), meanwhile, leveraging its legacy businesses to generate stable incomeBusiness Building Becoming Industry LeaderMeeting worldwide competition7麦肯锡三星战略6-TOSHIBASource:Literature Search; McKinsey AnalysisDEVELOPMENT OF DALIAN TOSHIBA’S TV BUSINESS IN CHINAKey initiativeKey results1996-1997•Founded as a joint venture in 1996, construction was completed in 1997. •Conducted accurate market forecast and implemented just in order inventory management. •Inventory turn-over less than two days.•Made profit the next year.20011998-2000•Focused on high profit margin PJTV segment, and competed on technology, service and management rather than price.•Strengthened customer service•Revenue and profit grew 50% annually. Became the No. 1 market share leader in PJTV segment. •Toshiba decided to relocate its digital TV production to Dalian and invested ¥300 million to expand capacity from one million units to 1.5 million units•exported 800,000 units to Japan. Business Building Establishing Leadership in PJTV MarketBecoming Toshiba’s Key Global TV Production Base8麦肯锡三星战略6-TOSHIBATOSHIBA WILL FURTHER INVEST IN IT INDUSTRY IN CHINABackground informationSource: Literature research, interview"To support China's 10th 5-year plan, we will enlarge our investment in IT industry…. Toshiba has the world-leading LCD related and semiconductor technology. The amount of each investment will exceed I billion USD."“Apart from Japan, Toshiba divides global market into four regions, America, Europe, China and the rest of Asia. China is the only region made up of one single country"Chief representative of Toshiba in China•Invested companies in China•Total investment•Chief representative•Total number of employees•Importance of China•Future investment plan23RMB 6 billionPintianxinzheng (pinyin)over 10,000Chief representative of Toshiba in ChinaSource:literature research, interview9麦肯锡三星战略6-TOSHIBATOSHIBA IS THE LEADING PLAYER IN NOTEBOOK MARKET BOTH IN CHINA AND GLOBALLYTimeKey milestones198519901993199419992000Introduced the first notebook in the worldIntroduced STN notebookIntroduced color TFT notebookIntroduced Pentium-empowered notebookRanked number one in China notebook market for 4 yearsRanked number one in world wide notebook market for 7 yearsEra analysis of Toshiba in NotebookSource:literature research, interview10麦肯锡三星战略6-TOSHIBASTRATEGY1. 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 offerings11麦肯锡三星战略6-TOSHIBATOSHIBA’S MISSION AND VISIONCorporate mission“We, the Toshiba Group companies, based on our total commitment to people and to the future, are determined to help create a higher quality of life for all people, and to do our part to help ensure that progress continues within the world community"Corporate vision“To grow with excellence as the leading-edge, internet-ready enterprise globally by accelerating innovation with agility, and to create a 21st century of success hand in hand with our customers"Source: Company website, Lit search.12麦肯锡三星战略6-TOSHIBATHREE STRATEGIES PROPEL TOSHIBA TO BECOME A GLOBAL HI-TECH LEADER IN THE NEW MELLIMUMToshiba as a leading-edge, internet-ready global leader in hi-techAccelerate the speed of innovation•Management Innovation (MI2001) is a major initiative being promoted throughout Toshiba Group. It is aimed at advancing creative destruction and competitive superiorityChampion market-centric management•Customer Relationship Management and Supply Chain Management systems will be deployed to cover company-wide operations.Be internet-ready•Digital Manufacturing, a new system, will be introduced throughout the Toshiba Group•An IT infrastructure for collaborative engineering will be established Source: Lit search, external interviews: Toshiba Annual Report 13麦肯锡三星战略6-TOSHIBAASSESSMENT OF TOSHIBA'S CURRENT STRATEGIC POSITION – SWOTStrengths•Broad and diversified product portfolio•Strong presence in Asia•Strong R&D and manufacturing capabilitiesWeaknesses•Less customer focused•Weak brand name in cutting-edge information technologies•Unbalanced global presenceOpportunities•Global digital convergence•Emerging technologies, i.e., Internet, 3G•China joining WTO opens doors to foreign companiesThreats•Bureaucratic management style•Its core semiconductor business is a cyclical commodity business•Behind the curve in key IT developments14麦肯锡三星战略6-TOSHIBATHERE ARE TWO SUCCESSFUL MODELS IN THE CHINA CTV MARKET, DALIAN TOSHIBA FOLLOWS THE SONY MODELThe Konka Model•Capital intensive, aggressive growth through economies of scale in manufacturing and in the sales force•From 1993 to 1998 Konka acquired TV manufacturers: North east Du Dan Jian, San Xi, An Suo, Chong Qing factories to bulk up•Grew capacity by 2 million units from 1993 to 1998•Through economics of scale and aggressive pricing Konka was able to grow market share from 3% to 11% from 1995 to 2000The Sony Model•Zero in on the high end, high profit segment of CRT TV market with a strong brand able to command price premiums•Not in a strong presence in unit market share, but the top brand when consumers respond for the brand quality and reliability•Corporate philosophy unwilling to sacrifice profits for larger market share (vast different from Chinese players)•Future target focused on higher end, cutting edge technology TVs e.g. PJTV, Digital TV, LCD and PDP which have significantly higher profit margins. Source: Lit search, McKinsey analysis 15麦肯锡三星战略6-TOSHIBATOSHIBA SHIFTS ITS STRATEGIC FOCUS TO APPLICATION SOLUTION AND CUSTOMER SERVICE IN CHINA NOTEBOOK MARKETMissionTo be the most responsible IT product application solution and service providerTimeStrategic focus1996199719981999•Product itself•Channel development•Application•Customer service2000•VIP certification focusing on core customers•Channel development into 2nd tier geographies•Application solution of "mobile office" conceptToshiba notebook strategy* in ChinaStrategy evolvement * Toshiba notebook strategy in China is co-developed by Digital China, Toshiba’s exclusive notebook chief-distributor in ChinaSource:literature research, interview16麦肯锡三星战略6-TOSHIBAPRODUCT/MARKET1. Background information•Location•Registered capital•Managementteam•Equitystructure•Starting year•Number of employees•Era analysis4. Value chain strategy5. Organization and ownership 6. 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•Key product offerings•Market position17麦肯锡三星战略6-TOSHIBATOSHIBA’S GLOBAL NET SALES BY BUSINESS SEGMENTSource: Toshiba web site, Lit SearchYea 2000 (¥ billion)Information & Communications & Industrial Systems ¥1,858Power Systems ¥571Electronic Devices & Components ¥1,477Digital Media ¥1,518Home Appliances ¥660Others ¥47318麦肯锡三星战略6-TOSHIBADALIAN TOSHIBA's KEY TV PRODUCT OFFERINGSColor TVs (inch, model no.)•Projection TV Series: 43’ – 61’–61D9UXC–50D9UXC–43D9UXC–50D8UXC–43D8UXC Source:Company website, Lit search•CRT TV Series: 21’ – 29’–29D2DC–29D2XC–25D2XC–25E3DC3–21D2NC •Flat TV Series: 21’ – 34’–34D8UXC–34D6DC–29D8UXC–29D6DC–29D3XC–25D6XC–21AF6C                                                                                                                                                                                                                                              19麦肯锡三星战略6-TOSHIBADALIAN TOSHIBA’S MARKET POSITION IN CHINA’S CONVENTIONAL CRT TV MARKET: NO. 5 MARKET SHARE LEADERMarket share by sales, %Source: GFK, McKinsey Analysis, External interviews: Konka, Sony, Toshiba19992000Others 100%100%Key trends Rationale •Industry undergoes further consolidation •Foreign players lose market share to local players•Top five players in the market –Changhong, TCl, Konka, Hisense, Skyworth,controlled 41.6% of the market in 1999 grew to 43.7% in 2000 •Local players increased market share from 65% in 1999 to ~67% in 20001.92.0RowaLGPanda Jinxing Skyworth-RGBXoceco Philips Haier Panasonic Hisense Toshiba TCLChanghongKonka Sony 20麦肯锡三星战略6-TOSHIBADALIAN TOSHIBA’S MARKET POSITION IN CHINA’S PJTV MARKET: NO. 1 MARKET SHARE LEADERSource: GFK, internal interview, literature search, external interviews: Sony, Panasonic, ToshibaKey trendsRationale •Established MNCs, Toshiba, Sony will continue to dominate market •Local players start establishing themselves by 2005•High-end producers with superior technology in pixel resolution and brightness•Local players expected to acquire key PJTV technologies as of 2003•As comparison, Changhong alone now controls ~ 20% of large screen CRTV market, local players likely to gain similar share in PJTV market Market share by salesPercent Local (KonkaChanghong, etc)Other MNCsHitachi PanasonicSamsungSonyToshiba19992000100%100%21麦肯锡三星战略6-TOSHIBAPJTV PLAYERS’ STRENGTHS AND WEAKNESSESCompanyStrengths/weaknessesToshiba•Strong brand name•Aggressive sales and marketingSony•No. 1 brand name•Premium market with highest industry profitsSamsung•Strong quality in resolution and brightness•Solid position in the market•Comparable technology with Japanese counterpartsOther MNCs: Panasonic, Philips, etc.•Possess the technology, but yet to establish themselves in marketLocal companies: TCL, Konka, Hinsense, Haier, Changhong•Lack the key technologies for PJTV components – tubes and screen•Low-end brand have resulted in low sales volume•Will fill up the technology gap by about 2003 Source: Lit search, McKinsey analysis22麦肯锡三星战略6-TOSHIBATOSHIBA HAS A FULL-LINE PROUCT OFFERING IN NOTEBOOK, COVERING LOW-END TO PREMIUM SEGMENT Source: Literature researchKey product offerings•Satellite Series 2800 (13.3", 14.1", 15.0")•Portege Series (7220CT, 3480CT, 3490CT)•Tecra Series (8100H, 8000J, 8200)•Satellite 1750 (13.3")•New satellite 2800 (13.3", 14.1",15.0")•Satellite Pro 4600 (13.3", 14.1", 15.0")•New Satellite Pro 4600 (14.1")•Satellite 3000 (13.3")Source:literature research23麦肯锡三星战略6-TOSHIBATOSHIBA IS STRONG IN EDUCATION, LARGE AND MEDIUM BUSINESS, BUT PARTICULARLY WEAK IN GOVERNMENTSource: IDCSmall office Home 100% =ToshibaMarket average73484Education Government Large businessSmall businessMedium business 3.83.53.7Sales by customer segmentsPercent of units shipment (000s), 200024麦肯锡三星战略6-TOSHIBATOSHIBA IS GENERALLY A MEDIUM TO HIGH-END PLAYER, PARTICULARLY STRONG IN USD 2.5-3.5K PRICE BRANDSource: IDC0.9Low(0-2k)Medium (2-2.5k)High (2.5-3.5k)100% = 0.110.120.170.73.51.40.10.08Premium (>3.5K)2.2Toshiba's market share0.1Sales by customer segmentsPercent of units shipment (M), 2000Others DellIBMFounderLegend AcerToshiba25麦肯锡三星战略6-TOSHIBAVALUE CHAIN STRATEGY1. Background information•Location•Registered capital•Managementteam•Equitystructure•Starting year•Number of employees•Era analysis4. Value chain strategy5. Organization and ownership 6. 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•Key product offerings•Market position26麦肯锡三星战略6-TOSHIBASource: Literature Search, Konka web site, team analysis R&DManufacturingMarketing& SalesDistribution After-Sales Services•Toshiba Digital Media Network Company is responsible for Color TV R&D•Dalian Toshiba is responsible for TV production. 30% parts come from China•Dalian Toshiba and its 4 subsidiaries in Dalian, Beijing, Shanghai and Guangzhou are responsible for marketing and sales•Dalian Toshiba primarily uses sales forces in its four subsidiaries to sell TV products directly to retailers. It also uses distributors in certain regions such as Chongqing.•Toshiba (China) helped set up the after-sales service network, and Dalian Toshiba is running the network and responsible for PNL.Digital mediaDigital MediaNetwork Co.Dalian Toshiba TV Co.TOSHIBA CHINA TV BUSINESS HAS A PRODUCT LINE ORIENTED VALUE DELIVERY SYSTEM27麦肯锡三星战略6-TOSHIBADALIAN TOSHIBA’S TV DISTRIBUTION CHANNELSource: McKinsey Literature Search, external interviews, McKinsey analysisDalian Toshiba TV Co.Manufacturing PlantDalian SubsidiaryBeijing SubsidiaryShanghai SubsidiaryGuangzhou SubsidiaryDistributorsRetailers:Hyper/super-market: 10%Designated Stores: 25%Dept. Stores: 30%Specialty Stores: 35%Consumers Subsidiary Sales Force70%30%28麦肯锡三星战略6-TOSHIBATOSHIBA ADOPTS THE NATIONAL CHIEF-DISTRIBUTOR PRACTICE IN NOTEBOOK BUSNIESS IN CHINA R&DManufacturingMarketing and brandingSales and distributionAfter-sales service•Toshiba R&D•Toshiba SH•OEM: Renbao, a Taiwanese OEM player•Digital China•Digital China (for Toshiba notebook only)•Toshiba•Digital China–Centralize key accounts across different products–Centralize SI for key accounts (banking, tax)–Be in charge of channel develop-ment and management•Digital China–Major responsibility•Toshiba SH factory–Parts' inventory–Ancillary hotlineToshibaToshiba SHOEMToshibaToshiba SHDealersDigital ChinaSource: interview29麦肯锡三星战略6-TOSHIBATOSHIBA HAS POSITIONED CHINA AS A KEY R&D BASE *The other two R&D centers are in the UK and the US respectivelySource:Literature research•Three-layer structure of Toshiba R&D–First layer focusing on technology trends in the next 3-5 years–Second layer focusing on multi-media technology and technology trends in the next 2-3 years–Third layer focusing on product development•Toshiba R&D in China–Established "R&D department" in Beijing, April 2001–Plan to develop it into "Toshiba (China) R&D center” in October 2001 which will be the third overseas R&D center of Toshiba–Plan to have 250 people this year and expand to 500 people in R&D center in 2005R&D30麦肯锡三星战略6-TOSHIBATOSHIBA HAS OUTSOURCED THE MAJOR PART OF NOTEBOOK MANU-FACTURING AND ITS DISTRIBUTOR IS CAPABLE OF CUSTOMIZATION IN CONFIGURATION Source:Literature research, interviewManufacturingParties involvedResponsibilitiesToshiba SH•Assembling production to cover total volume sold in China•Assembling production for expertOEM (Renbao)•Major part of notebook manufacturingDigital China•Customization for big-batch order according to customers' individualized demand for hardware configuration31麦肯锡三星战略6-TOSHIBAUNDER STRONG COST PRESSURE, DIGITAL CHINA AND TOSHIBA ARE PUSHING TOWARDS MORE FLATTENED CHANNEL STRUCTURE Source: CCID, interviewChannel StructureChannel Cost Percent of retail priceDigital ChinaCore distributors (~ 50)DirectSpecialty shops (over 100)Industry distributorsEnd usersSecond tier dealers (hundreds)Before 19971997-19981999-2001Future expecta-tion of manu-facturers>> 10>108-105-8•Pay sufficient attention to fast-growing customer segments, such as education and home, as well as major segments, such as government and business•Expand into 2nd-tier geographies and enhance channelChannel strategy32麦肯锡三星战略6-TOSHIBADIGITAL CHINA IS BUILDING UP AN ADVANCED NATION-WIDE DISTRIBUTION NETWORK TO FURTHER CUT DOWN COST Source:Literature research, interviewDistributionKey initiative•Build up a nation-wide logistics systemTotal investment•RMB 65 millionThree-tier structure•3 first-tier centers in Beijing, Shanghai and Guangzhou•7 second-tier centers•Third-tier componentsDetailed practice•Providers deliver to three first-tier centers•Inventory is distributed among all the three tiers with inventory cycle shortening from first tier to the third•SCM management is through IT network33麦肯锡三星战略6-TOSHIBADESPITE CONTINUOUS IMPROVEMENT, TOSHIBA NOTEBOOK’S CUSTOMER SERVICE STILL LAGS BEHIND IN CERTAIN ASPECTS•VIP certificate For A-class customers, Toshiba notebook guarantee includes response within 10 hours, and repair finished within 20 hours, otherwise offering a backup notebook•On-site serviceOn-site service is offered in Beijing, Shanghai, and Guangzhou•Dell and Acer offer 4-hour response commitment •Dell offers on-site service in major cities in ChinaCustomer service* FootnoteSource: SourceMajor initiativesCompetitor’sofferings Source:Literature research, interview34麦肯锡三星战略6-TOSHIBAORGANIZATION AND OWNERSHIP1. 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 offerings35麦肯锡三星战略6-TOSHIBASource: Lit search, team analysisTOSHIBA’S CORPORATE STRUCTUREStatutory AuditorsBoard of DirectorsPresident & CEOCorporate projectCorporate staffCorporate support servicesiValue Creation Companye-Solutions CompanySocial Infrastructure Systems Company Digital Media Network CompanyMobile CommunicationsCompanyPower Systems & Services CompanySemiconductor CompanyDisplay Devices & Components CompanyMedical Systems CompanyHome Appliances CompanyJapanForeign Country Dalian Toshiba TV, LtdOther JVOther SubsidiariesJapanForeign Country36麦肯锡三星战略6-TOSHIBATOSHIBA’S MAJOR SHAREHOLDERSSource: Toshiba website(As of September 30,2000) EntityPercent OutstandingThe Dai – ichi Mutual Life Insurance CompanyThe Sakura Bank,Ltd.Nippon Life Insurance CompanyState Street Bank and Trust CompanyThe Chase Manhattan Bank NA LondonThe Sumitomo Trust and Banking Co.,Ltd.Employees Stock Ownership PlanThe Mitsubishi Trust and Banking CorporationMitsui Mutual Life Insurance CompanyThe Nippon Fire & Marine Insurance Co.,Ltd.3.94%3.88%3.36%2.55%2.28%2.27%1.88%1.68%1.65%1.55%37麦肯锡三星战略6-TOSHIBATOSHIBA HEADQUARTER HOLDS THE MAJORITY OF ITS NOTEBOOK MANUFACTURING JV IN CHINA Source: Literature researchOwnership structureToshibaToshiba China Co., LtdShanghai JinqiaoToshiba Computer (Shanghai) Co., Ltd80%10%10%38麦肯锡三星战略6-TOSHIBAFINANCIAL PERFORMANCE1. Background information•Location•Registered capital•Managementteam•Equitystructure•Starting year•Number of employees•Era analysis4. Value chain strategy5. Organization and ownership 6. 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 offerings39麦肯锡三星战略6-TOSHIBATOSHIBA’S OVERSEAS SALES AND R&D EXPENDITURESOverseas Sales(￥billion)R&D Expenditures(￥billion)Source: Toshiba 2001 Annual Report, Lit search 199819992000CAGR=4.7%199819992000￥2,040￥2,116￥2,2352,0001,5001,0005000￥323￥317￥3443202401608005.9％6.0％5.8％R & D ExpendituresPercentage of Net Sales40麦肯锡三星战略6-TOSHIBATOSHIBA’S HISTORICAL REVENUES AND PROFITSNet SalesCAGR = 1.9% 19971998199920002001Net IncomeCAGR = 9.4%*Source: Toshiba 2001 Annual Report, Lit search Yen billion1997199819992000200141麦肯锡三星战略6-TOSHIBAIN 2000, DALIAN TOSHIBA’S UNIT SALES IN CHINA WAS 7% OF CHANGHONG’S UNIT SALES, BUT DALIAN TOSHIBA’S GROSS PROFIT IN CHINA WAS 89% OF CHANGHONG’S GROSS PROFIT Unit SalesthousandDalian ToshibaChanghong Source: 21st Century Economic report, March 19, 2001Gross Profitbillion RMBDalian ToshibaChanghong42麦肯锡三星战略6-TOSHIBADESPITE OF STRONG GROWTH OF TOTAL MARKET, TOSHIBA NOTEBOOK HAS EXPERIENCED STAGNANT GROWTH OF 4.4% ANNUALLYNotebook revenue (RMB billions)Source: IDCToshiba in China19992000199898-00 CAGRPercent Total China market19992000199898-00 CAGRPercent 48.64.86.110.64.41.61.51.743麦肯锡三星战略6-TOSHIBA。