AppendixContact:xxxwww.capgemini.comSamsungvs.Philips:AValueChainAnalysisContact:xxxwww.capgemini.comJune2004CAPGEMINI_PPT_REPORT.POT3IncollaborationwithClientorPartnerlogoGeneralforSamsungGeneral1.MainreasonsforSamsung’ssuccessarerationaloperationsandinnovationintechnology2.ImportanceofChinaforSamsung:ChinaiscoremarketforSamsung.“Chinaisatthetopoftheprioritylist”3.HowmuchdidSamsunginvestinChina?2.8billionUSdollarsbetween1992en2003(Whatdoesthisinvestmentconsistof?)4.RevenueSamsungElectronicsChina:over6.4billionUSdollarSource:infobyinterviewwithPhilipsemployees;Philipswebsite;Samsungwebsite,newsarticlesandreportfrompaidwebsite;ChinaconsumersJune2004CAPGEMINI_PPT_REPORT.POT4IncollaborationwithClientorPartnerlogoGeneralforPhilipsGeneral1.MainreasonsforPhilips’ssuccess?LocalizationGoodrelationwithChinesegovernmentIntotheChinamarkerearly2.ImportanceofChinaforPhilips:ChinaiscoremarketforPhilips.“ChinaisthesecondlargestmarketforPhilips”ExpectingexceedU.SmarketbecomingtheNo.1marketin200713R&DbaseinChina,invested50mildollarsinR&D,700employees3.Philipsinvest50MillionsUSdollarsinChina4.RevenuePhilipsChina2003:over7.5billionUSdollar–2.5billioninChinamarket–5billionoverseasSource:PhilipspresentationsJune2004CAPGEMINI_PPT_REPORT.POT5IncollaborationwithClientorPartnerlogoSamsunghasawellstructureddistributechannelframeinit’sdistributionalongwithasmoothsupplychain;PhilipsRUNNINGHEAD1.Organizationofproduction:bothin-houseandoutsourced.MostfactoriesareJV’swithChinesecompanies2.UseofODM’s:3.Competitiveadvantagesinmanufacturing:4.Linkmanufacturingandfasttimetomarket:5.LogisticsanddistributioninChina:Toreducethelengthtotheend,Samsunghassegmentedthechannelsas5groups:1.(1)Bigwholesalers2.(2)Retailsassociation3.(3)Regionassociation4.(4)IndustryVIPclients5.(5)ChainedsupermarketsAlsothereareSoleagentsforeachregion,forexample,Samsunghassetup10soleregionagentsineachofthecopymachineandfaxmachinecategoryinthenation.;InIndustryVIPclient,focusonGovernment,publicsecurity,educationandbanks,inordertoincreasethesalesinstateownedsector.Theolddistributechannelagentsaretransformingtothedistributechannelstrategyalliancepartners1.Philipsownsallitsfactoriesworldwide2.PhilipshasgraduallymovingtheirCEmanufacturinglinesintoChina.ForExample:ChinaistheonlyTVsetmanufacturebaseforPhilips.ButthisTVbusinessunitisunderdiscussiontomergetootherChinesecompetitorsforbetterconformityinPhillips.3.ManufacturingitselfisnotadistinguishingfactorforPhilips.Themanagementofthecompletesupplychainis,thankstogoodcontracts,goodsuppliernetworksandanefficientinternalorganization.PhilipsdoesnothavecompetitiveadvantagesinmanufacturingCEproductsaccordingtheiremployee4.PhilipsispresentalloverChina,sothisindicatesthatlogisticsanddistributionistakencareof..5.Around90%isChinese7%AsiannotincludesChinese(Taiwan,Singapore,HongKong,Malaysia,Philippine)3%iswestern(Holland,American)SamsungPhilipsOperationsSource:infobyinterviewwithPhilipsemployees;Philipswebsite;Samsungwebsite,newsarticlesandreportfrompaidwebsite;ChinaconsumersJune2004CAPGEMINI_PPT_REPORT.POT6IncollaborationwithClientorPartnerlogoSamsunghasamuchhighermarketpositioncomparingtoPhilips’sunclearmarketposition,butnowPhilipshasit’snewpromotioninmarketingRUNNINGHEAD1.SamsungintoChinamarketpositionedinthehighlevel2.Stylishdesignandfastreactiontothemarketpr...