AppendixContact:xxxwww.capgemini.comSamsungvs.Philips:AValueChainAnalysisContact:xxxwww.capgemini.comJune2004CAPGEMINI_PPT_REPORT.POT3IncollaborationwithClientorPartnerlogoGeneralforSamsungGeneral1.MainreasonsforSamsung’ssuccess?2.ImportanceofChinaforSamsung:ChinaiscoremarketforSamsung.“Chinaisatthetopoftheprioritylist”3.HowmuchdidSamsunginvestinChina?2.8billionUSdollarsbetween1992en2003(Whatdoesthisinvestmentconsistof?)4.RevenueSamsungElectronicsChina:over6.4billionUSdollarSource:www.chinanex.com/company/samsung.htmJuly2004;“HowSamsungpluggedintoChina”,BusinessWeekonline,March2002June2004CAPGEMINI_PPT_REPORT.POT4IncollaborationwithClientorPartnerlogoGeneralforNokiaGeneral1.MainreasonsforNokia’ssuccess?2.ImportanceofChinaforNokia:ChinaiscoremarketforNokia.“ChinaisthesecondlargestmarketforNokia”3.HowmuchdidNokiainvestinChina?unknown4.RevenueNokiaChina2002:over2.7billionUSdollarin2002Source:NokiapresentationsJune2004CAPGEMINI_PPT_REPORT.POT5IncollaborationwithClientorPartnerlogoNokiahasasmoothsupplychain;littleisknownaboutSamsung’sSCRUNNINGHEAD1.Organizationofproduction:bothin-houseandoutsourced.MostfactoriesareJV’swithChinesecompanies2.UseofODM’s:3.Competitiveadvantagesinmanufacturing:4.Linkmanufacturingandfasttimetomarket:5.LogisticsanddistributioninChina:6.AllSamsung:Employeesover43,000,in69officesintheChina.1.Nokiaownsallitsfactoriesworldwide2.Nokiadoesoutsourcethe“puttingtogether”ofthephone.ExpertsdonotthinkODM’sareused,sincethedesignistoovaluableandIPRissueswillarise.Nokiaworkstogetherwithalargenumberofcompanies,alsoinChina,anddominatesthisrelationship3.ManufacturingitselfisnotadistinguishingfactorforNokia.Themanagementofthecompletesupplychainis,thankstogoodcontracts,goodsuppliernetworksandanefficientinternalorganization.However,recentlyNokiahaddifficultieswiththedeliveryofoneofitsnewphones.Itisknown,however,tohavestrongcontroloverinventoryandfactories4.Nokiashouldhaveafastertimetomarketthencompetitors,sinceithasasmartproductionsystem,whereitcanproducedifferentphonesonthesameproductionline5.NokiaispresentalloverChina,sothisindicatesthatlogisticsanddistributionistakencareof..NokiahasoutsourcedtransporttoDanzasinEurope;nofurtherinfoavailableonChina.SamsungNokiaOperationsSource:PresentationsfromNokiawebsite;FinnishNokiaexperts;ChinaconsumersJune2004CAPGEMINI_PPT_REPORT.POT6IncollaborationwithClientorPartnerlogoNokiaspendsmoreonR&DthenSamsungRUNNINGHEAD1.Samsungappliesexistingtechnologiesinsteadofbreakthroughnewtechnologies2.Ratiobetweenin-houseandoutsourcedR&D:3.Samsungistrulymarketdriven.1.InformationtransferbetweenR&Dandmarketing:viaCRMsystem?4.R&DspendofSamsungElectronics:2003:$2.9billion(8%ofrevenues)Describedas“RelentlessspendingonR&D”wehavefoundsomeNO:8%inCE10%inMobileinR&Dspend1.PercentageofR&DbudgetdevotedtoCE:2.SamsungisinnovativeinbothCEproductsandmobilephones:mainlyinnovativereuseandcombinationsofexistingtechnology(internetfridge,etc)3.SuperiorityofSamsung’sR&D4.Updatewithapplyingiinchord,stylishandflipphoneetc5.AttheBeijingR&Doffice,thereis100moreChineseR&Demployees6.SamsungusesithomemarketofKoreaasatestinggroundfornewproducts,especiallyformobilephonesSamsungNokiaR&D1.Nokiacreatesnewtechnologiesaccordingtoexpert,butlookingatproducts,itseemsmorelikeimprovingonandcombiningtechnologiesthatalreadyexist.Thecompanyseemedtohaveaninnovationprob...