Sales Operations and Supply Chain
Management at Seagate
Ming Chao, International Trade Americas Manager
Mike Ruggiero, Senior Sales Operation Analyst
Table of Contents
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Introduction
Seagate Overview
Industry Trends
Current Dynamics
– Samsung Integration
– Thailand Flooding
– Brazil / Latin America
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Introduction
Ming Chao
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UC Santa Cruz ISM ‘04
Santa Clara University MBA ’10
Joined Seagate since 2005
Currently International Trade Manager responsible for Americas region
Mike Ruggiero
3
Seagate: Storage Leader
• Seagate is the world’s leading provider of storage devices.
– Q1 FY2012*: 51 million drives shipped; revenue of $2.8 billion
• Provides storage for enterprise, desktop, mobile
computing, consumer electronics and retail markets
– Builds hard disk, solid state hybrid and solid state drives
– 29% overall market share
– Broadest product offering in the industry – largest customer base
• Ownership and vertical integration of critical technologies:
heads and media
• 53,775** employees worldwide
* For fourth fiscal quarter ended September 30, 2011
** Includes interns, contractors, and agency temps
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Seagate Global Presence
Springtown, N. Ireland
Dublin, Ireland
Shakopee, MN
Bloomington, MN
Amsterdam, Netherlands
Munchen, Germany
Paris, France
Marlow, UK
Fremont, CA
Cupertino, CA
Scotts Valley, CA
Shrewsbury, MA
Beijing, China
Tokyo, Japan
Wuxi, China
Suzhou, China
Delhi, India
Oklahoma City, OK
Longmont, CO
Shanghai, China
Taiwan
Teparuk & Korat, Thailand
Johor & Penang, Malaysia
Ang Mo Kio, Singapore
Science Park, Singapore
Woodlands, Singapore
Sydney, Australia
HQs, Admin and/or Sales
Design
Customer Support
Drive & Component Mfg
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Q1 Financial Strength
Revenue
$2.8 billion
Net Income
$140 million
EPS
$0.32
Shipments
51 million
Margin
19.5%
GAAP numbers
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*
Total Industry Units Shipped
Millions
700
Retail
Notebook
Enterprise
Desktop
Consumer Electronics
600
500
400
300
200
100
0
CY00
CY01
CY02
CY03
CY04
CY05
CY06
CY07
CY08
CY09
* represents HDD and SSD
Source: Seagate Market & Competitive Intelligence
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CY10
Industry Trends
Opportunities Demand More Storage
Significant Architectural Change




Cloud
Mobility
Hardware Integration
Open Source Components
and Software
 Direct Customer Purchases
Emerging Markets
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The Cloud... Today
Over one billion web pages
350,000 iPhone apps
Over 100,000 Android apps
10,500 radio stations
5500 magazines
More than 300 TV networks
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Emerging Markets
Asia storage market in 2020 will be 50%
bigger than entire global
storage market in 2009
Asia has half the world’s 2 billion
internet users, yet only 24%
internet penetration
Brazil will have world’s 3rd largest
PC install base by 2015, up from 6th
in 2010
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Current Dynamics
Seagate and Samsung Expand Their
Strategic Relationship
• Samsung combining its hard disk drive (HDD) operations
into Seagate
– Extending and enhancing existing patent cross-license agreement
between the companies
– A disk drive supply agreement under which Seagate will supply disk
drives to Samsung for PCs, notebooks and consumer electronics
– Samsung will provide Seagate with its market-leading semiconductor
products for use in Seagate’s enterprise solid state drives (SSDs),
solid state hybrid drives and other products
– Expanded cooperation between the companies to co-develop
enterprise storage solutions
• Samsung receiving significant equity ownership in Seagate
– A shareholder agreement under which an executive of Samsung will
be nominated to join the Seagate Board of Directors
• The European Commission has approved the transaction.
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Thailand Flooding
The slow recovery here is having global consequences. Before the floods,
Thailand produced about 40 percent to 45 percent of the world’s hard disk
drives, the invaluable and ubiquitous storage devices of the digital age.
The upshot for consumers worldwide is that they may face a prolonged
period of higher prices for hard drives. In the United States, certain models
are currently 40 percent to 50 percent more expensive than before the floods,
levels that may remain for several months, analysts say.
•New York Times 1/21/2012
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Brazil Manaus Free Trade Zone
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Manaus Free Trade Zone Issues:
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Brazil Rankings (out of 183 countries – 2011)
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