COMPANY ANALYSIS OF:

BY- SWAPNIL SAUMYA

SEC-A

ROLL NO-91

MBA 18-20
 SIEMENS

Siemens AG is a German company headquartered in Berlin and Munich and the largest
engineering company in Europe with branch offices abroad. The principal divisions of the
company are Industry, Energy, Healthiness’, and Infrastructure & Cities, which represent the
main activities of the company

HISTORY: Siemens & Halske was founded by Werner von Siemens and Johann Georg
Halske on 12 October 1847. Based on the telegraph, his invention used a needle to point to the
sequence of letters, instead of using Morse code. The company, then called Telegraphen-
Bauanstalt von Siemens & Halske, opened its first workshop on 12 October. In 1848, the
company built the first long-distance telegraph line in Europe; 500 km from Berlin to Frankfurt
am Main. In 1850, the founder's younger brother, Carl Wilhelm Siemens later Sir William
Siemens started to represent the company in London. In 1867, Werner von Siemens described
a dynamo without permanent magnets. A similar system was also independently invented
by Charles Wheatstone, but Siemens became the first company to build such devices. 1881, a
Siemens AC Alternator driven by a watermill was used to power the world's first electric street
lighting in the town of Godalming, United Kingdom. The company continued to grow and
diversified into electric trains and light bulbs. Siemens & Halske (S & H) was incorporated in
1897, and then merged parts of its activities with Schuckert & Co., Nuremberg in 1903 to
become Siemens-Schuckert. In 1907, Siemens (Siemens & Halske and Siemens-Schuckert) had
34,324 employees and was the seventh-largest company in the German empire by number of
employees. In 1919, S & H and two other companies jointly formed
the Osram lightbulb company. During the 1920s and 1930s, S & H started to
manufacture radios, television sets, and electron microscopes. In the 1950s, and from their new
base in Bavaria, S&H started to manufacture computers, semiconductor devices, washing
machines, and pacemakers In 1966, Siemens & Halske, Siemens-Schuckertwerke and Siemens-
Reiniger-Werke merged to form Siemens AG . In 1985, Siemens bought Allis-Chalmers'
interest in the partnership company Siemens-Allis (formed 1978) which supplied electrical
control equipment. It was incorporated into Siemens' Energy and Automation division.

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 SWOT ANALAYSIS

STRENGHTS WEAKNESS

 High quality and vast range of  Low price products

products
 After sale service and online  Low employee satisfaction level
 service and weak appraisal system

 Think globally and act locally  Mixed cultures and complex

strategy organizational level
 Joint ventures with many  Dependence on third party
internationally renowned providers can affect operational
companies and acquisitions have efficiency
made it a powerful band

 Sustainable success through

diversity

Opportunities Threats

 IT expansion  Expanding market share in

emerging markets
 Overseas projects  Heavy dependence on few suppliers

 Market integration opening up  Expanding market share in

emerging markets
 Strong position and growing  Low Product pricing by
opportunities in other countries competitors

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 PESTLE ANALYSIS

POLITICAL:

1. Siemens is based out of Germany, which has cordial relations with most of the countries.

2. Terrorism and civil unrest and political uncertain across Europe, Middle East and African
(EMEA) markets may impact Siemens business.

ECONOMIC:

1. Asia to be key market for Siemens with China growing fast and opportunities in Iran after
ease of sanctions.

2. Growth in smart city projects globally are huge potential for Siemens as it has expertise
across domains

SOCIAL:

1. Siemens Europeans@ Siemens program enables students from select countries to participate
in work-study programs in Germany.

2 .Fosters ownership culture with employee shareholding and invests highly in employee
training and education.

TECHNOLOGICAL:

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 1. Siemens to strengthen leadership in digitization and automation by combining software,
platforms &services.

2. Dedicated unit ‘next47’, for innovation and development of next-gen tech with $ 1 billion
budget for five years will drive growth.

LEGAL:

1. Lawsuits faced by Siemens can significantly affect profitability.

ENVIRONMENTAL:

1. Siemens target to become Carbon neutral by 2030 by investing over $100 million.

2. Siemens Environmental Tech helped its clients reduce their CO2-footprint by 521 million
tons in FY16.

5C ANALYSIS

COMPANY:

Company Objectives: To be the pioneer of our time-that’s the vision that motivates us in
everything we do.

Company Strategy: To capture and maintain leading market and technology positions in all its
business in order to achieve sustainable profitable growth and continually increase the company
value.

Company Capabilities:

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  Sophisticated energy automation
 Technology makes it possible to adopt power grid to future
Demands.

Company Positions: Siemens maintains leading positions in the global health care market

Company Performance: Siemens net income 7380(in mn of EUR) and revenue 75636 (in mn
of EUR) in the year 2015

Company Product line:

 Manufacturing IT
1. CAMSTAR
2. SIMATIC IT
3. IBS
 Healthcare:
1. Laboratory diagnostic
2. Imaging system and healthcare information Technology
 Energy Sector: Full range expertise in the area of power generation and Power
Transmission and distribution
 Industry: End to end products, system and solutions for industrial and buildings
automation as well as infrastructure installation are provided.
Strength of business model: Siemens quality policy is “Customer satisfaction through
continuous Improvement”

COMPETITOR:
Immediate competitor:
 GE
 HITACHI
 MITSUBISHI
 PHILIPS
 SKODA
Nature of Competitor:
 Health Care
 Electronic Systems and Equipment’s
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  Energy system
Capability of competitor:
 GE health care set to take share from Siemens and Philips
 Skoda to complete with Siemens metro business
 Siemens outshines Philips and GE red money
Financial strength of competitors:
 GE revenue $117.48
 Philips sales €24244 million and brand value of around $10.9 billion
Marketing Strength of competitors: GE, PHILIPS, HITACHI aims to evaluate the existing
portfolios of strategic business units and to develop strategies to achieve growth by addition of
new products and to analyses which business units to invest and which ones to sell off

Growth and investment plans of competitors:

 GE $3 billion investment plan for Saudi Arabia
 Philips healthcare INDIA plans to invest up to $60 million in three to five years

CUSTOMER

Demographics of customer: There are now more people on earth than ever before and life
expectancy has reached an all-time high. Today’s major mega trends is further intensifying the
demand for healthcare

Advertisement most suitable for customer: The true influence when it comes to
advertisement comes from channel that are more personal and more interactive

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 Market size and potential growth: The Company focus on growth fields along the
electrifications, automation and digitalization by the 2020.

Motivation to buy the products:

 Potential customer are more likely to buy if the employees are courteous ,helpful and
attentive
 Make it easy for customer to buy from you
 Best value for the price of the product
Quantity and frequency of purchase: Regency Frequency Monetary (rfm) analysis that is
used to predict customer response indirect market promotions.

COLLABORATORS:
 Siemens kicks off a campaign with incumbent OPHD and DG media mind. The initiative,
aimed at raising “brand awareness with a focus on Siemens”
 Siemens concentrates in all sectors on only the best suppliers .In selecting the suppliers
we emphasize factors like total cost,
quality ,environmental awareness and compliance
 Partnership of UMCG-Siemens for building the future of health ie advanced blood and
genetic maker development.

CLIMATE

POLITICAL Environment:
 Siemens stands out to be a beacon of political strength
 The export control policy of Siemens prohibits from participating, directly or
indirectly in the development, manufacturing and distribution of weapons
 Government’s thrust care would benefit Siemens since it is well established in the
healthcare segment.
Economic Environment:
 In the 3rd quarter of 2009, Siemens strong order backlog softened the impact of the global
recession on the company’s revenue on the company revenue and profit.
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  The slowing global economy resulted in a decline in investment , which impacted
Germany, the headquarters for Siemens.
 The company cut roughly four percentage of its workforce as part of an overhaul
resulting from recent economic woes.
Socio-culture environment:
 Preference for energy efficient vehicles with low running cost
 Customer inspired solutions to design break through products.
 Siemens traditionally supports various charity activities and human protects throughout
the world.
Technology Environment:
 Siemens must deliver and develop products that are highly innovative and cost sensitive
while competing in the distributed global market.
 Implementation of product life cycle Management(PLM) to
Success and grow in a demanding global market.
 Siemens being today’s most forward thinking company has built Global Innovation
Networks’ that enables them to continuously improve their products and processes.
Legislative environment:
 Siemens It solutions industry ,together with Green peace, are pushing for changed in
India’s environmental law to better reflect the complexities of managing and handling
electronic waste.
 Implementation of impact 360 workforce Management, Siemens business service has
realized a significant return on investments.
 Siemens PLM software has publicity traded securities, it is subject to the securities laws
in many countries.

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 BCG Matrix

Star:

Products or services with high growth and high market share.

Automation & Drives (A&D)

Growth:

Investment for distribution in major growth market.

No. one supplier of automation technology worldwide.

Leader in innovation.

Siemens Building Technologies (SBT)

Growth:

Demand for increase safety, security and efficiency in large-scale building Market Share:

Increased penetration of their installed base.

Success in services.

Industrial Solution & Services (I&S)

Growth:

Acquisition in metallurgy sector

Leader in Airport solutions.

No. one in parcel sorting system.

Biggest supplier of water treatment system.

Power Transmission & Distribution (PTD)

Growth:

Expending operations in Russia, China, India and USA Market Share:

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 Ranks first or second worldwide

Field Services

Growth-Service potential for Fossil Rotating Equipment.

Trained pool of experts

.Market Share: Famous in all over the world specially ME region.

Centre of competency.

Medical

Growth-Increasing demand due to growing and aging world population and intervention
combined with high performance IT solutions and technologies.

Market Share: Establish business for expansion (i.e. C.T Scanners and molecular diagnostics).

Siemens Business Service (SBS)

Growth:

Overall IT industry is booming.

SAP implementation.

Market Share: Among ten in the huge industry.

Leading e-government provider in Middle East

Cash Cow:

Products or services with low growth and high market share.

Power Generation (PG) through Wind & Solar

Growth:

Increasing demand for wind power and solar power but investment is little Market Share:

75% of sales but limited future. (Pessimism for fossil power).

Water and Waste water Solutions

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 Growth:

Industry is on its initial stages

Market share-50% Siemens Water Technologies provides the most comprehensive, cost-
effective Water Treatment Solutions.

Question Mark:

Products or services with high growth and low market share.

Transportation System (TS)

Growth:

Increase in number and size of mega cities.

Networking different mode of transports.

Market Share-

Full range supplier and system integrator.

Leader in the international rail industry.

Siemens Financial Services (SFS) & Real Estate (SRE)

Growth: Questionable

Market Share Questionable ability to penetrate and gain leadership position.

Dog:

Siemens Home Appliances:

Growth: Expensive products as compare to local Industry

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 GE Matrix
Market share: Market share is very low.

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 Market Analysis:

Market size: Siemens is the one of the most valuable company in the world. Siemens Stock is
included in a number of major indices such as Dow jones stocks 50, Global Titan and S&P
Global 100, with sales of more than $85.51 billion.

Market Share:
 Siemens market share in OEM sector is 10.8%
 Siemens market share of PLC brands is more than 31%
 Siemens Market share of medical devices is more than 9%
 Siemens market share of wind turbine maker is about 9.8%
 Siemens have market share of 21.08% in gas turbine electrical Power generation.
Market segmentation:
 Power and gas
 Wind power and renewables
 Energy management
 Building technologies
 Digital factory
 Healthcare
 Financial Service
Key players:
 GE
 PHILIPS
 HITACHI
 CARESTREAM

Market Audit:
 Joint ventures with many internationally renowned companies
 After sale service and online service
 Expanding market share in emerging markets
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  IT expansion in the overseas

Target Market share:

 Siemens made a partnership with Boeing co, Ford motor co and Stratasys to introduce
advance 3D printing technology to the aerospace and automotive industries
 Siemens target to build its own fingerprint sensor.

COMPETITOR:
Immediate competitor:
 GE
 HITACHI
 MITSUBISHI
 PHILIPS
 SKODA
Nature of Competitor:
 Health Care
 Electronic Systems and Equipment’s
 Energy system
Capability of competitor:
 GE health care set to take share from Siemens and Philips
 Skoda to complete with Siemens metro business
 Siemens outshines Philips and GE red money
Financial strength of competitors:
 GE revenue $117.48
 Philips sales €24244 million and brand value of around $10.9 billion
Marketing Strength of competitors: GE, PHILIPS, HITACHI aims to evaluate the existing
portfolios of strategic business units and to develop strategies to achieve growth by addition of
new products and to analyses which business units to invest and which ones to sell off

Growth and investment plans of competitors:

 GE $3 billion investment plan for Saudi Arabia
 Philips healthcare INDIA plans to invest up to $60 million in three to five years
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 RECOMMENDATIONS:

Siemens should go for different forms of advertisement, they should opt for both digital
advertisement such as social media advertisement and traditional advertisement such as
hoarding and banner.
They should make a good and best utilisation of their own technology by working in the
front market rather letting use their own technology.
They should also expand their market and products.

REFRENCES

GOOGLE SCHOLAR
www.siemens.com

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