Case Analysis Of Siemens

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Introduction

Siemens is a German conglomerate that specialise in electronics and electrical engineering. They currently operate in four different sectors, these being Healthcare, Industry, energy and Infrastructure & Cities sector (Siemans a). They are represented in 190 countries (Siemens b), employ around 362,000 employees (Siemens c) and in 2013 achieved a revenue of €75,882 million and a net income of €4,409 million (Siemens d). This essay will focus on Siemen’s energy sector.
Using Porter’s generic strategies framework (See appendix 1) it can be identified that Siemens is using a differentiation strategy. Siemens promotes and utilises diversity in every level of the organisation and is vital in their corporate level strategy. As Siemens seek to hire highly qualified employees and due to demographic changes in the global market place, diversity is vital for Siemen’s long-term success. In 2010, Denice Kronau was given the title of Chief Diversity Officer to “foster diversity in every corner of Siemens” (Siemens). The most important aspect of Siemen’s strategy is innovation, this allows them to enhance their core competences and ensure their products are of the highest quality.

Porter’s 5 Forces analysis

Degree of Rivalry

In the energy industry, Siemens competes with big players such as General Electric (GE) of Fairfield, Conn., and ABB (ABB) of Switzerland (The Street, 2009). This shows that there are a number of large successful companies competing in this marketplace and so the degree of competition is high. However, as the energy sector is so vast and Siemens compete globally, there is enough demand for Siemens and each of their competitors to succeed.

Bargaining power of customers

The products and services that Sie...

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...ch allow them to continually innovate and create revenue in existing and new markets their stakeholders are highly likely to accept their strategy. Siemens also put a heavy focus on their CSR, for example in 2013 Dow Jones named Siemens as the world’s most sustainable company for the second time running (Siemens csr), so this strategy and continuation of the sustainable beliefs ensures that they keep their environmental stakeholders satisfied as well as stakeholders who want Siemens to profit.

Feasibility
Siemens have the resources and capabilities required to carry out this strategy. They have significant profits that they are able to feed back into the company, a highly capable workforce that have the necessary core competencies to continually innovate and grow the company and they have the experience and knowledge to compete in every sector that they engage in.

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