5. Organization and ownership
• Organization structure • Ownership structure
3. Product /market
• Key product offerings • Key customers • Value proposition • Geographic focus • Pricing
History
• 1982 Siemens Beijing office opened • 1985 entered China's telecommunication market • 1990 established JV Beijing International Switching System • 1994 Siemens China founded in Beijing • 1998 formed business segment - Information and
and Unicom
Source: Siemens press release
Implication
• An early entrant to
China's telecommunication market
• Broad product portfolio
representing all business sectors of Siemens worldwide
with most competitive pricing
• Carefully select exclusive channel
partner PTAC to maintain uniform price level nationwide to ensure healthy sales
• Helps resellers set up service centers
5. Organization and ownership
• Organization structure • Ownership structure
3. Product/market
• Key product offerings • Key customers • Value proposition • Geographic focus • Pricing
• What will be Siemens’s future products and which
segments of the market will it target at?
• In which segment of the market is Siemens strong or
weak?
• What is the key success factors for Siemens to pick up
• What does Siemens aim to be in 2005 in mobile
communication?
• How are Siemens’s product and value delivery system
strategies different from its competitors’?
• Invested USD 0.44 billion in China
Investment
Business
• All business sectors of Siemens including information
and communication, automation and control, power, transportation and household appliance, etc.
5. Organization and ownership
• Organization structure • Ownership structure
3. Product/market
• Key product offerings • Key customers • Value proposition • Geographic focus • Pricing
Communication
• 2000 joined forces with CATT and Huavei for next generation
mobile technology. Founded TD-SCDMA international forum
with Datang, CATT, Huawei, Motorola, Nortel, China mobile,
BACKGROUND INFORMATION
1. Background information
• Location
• Starting year
• Registቤተ መጻሕፍቲ ባይዱred • Number of
capital
employees
• Management • Era analysis
team
• Equity
structure
4. Value chain strategy
• Focus on
– Marketing, advertising and promotion
– Distribution (channel and sales force)
2. Strategy
• Mission • Vision • Corporate strategy • Market position
and marketing?
• With a broad product portfolio, how does Siemens
organize or reorganize itself?
• How does Siemens perform and is its performance
expected to improve further?
6. Financial performance
• Sales • Profit
SIEMENS AIMS TO BE NUMBER 2 IN MOBILE COMMUNICATION MARKET IN CHINA
Product
Value delivery system
Strategy
• Focus on stylish new models with
Starting
• Entered China's telecommunication in 1985 • Information and communication business started 1991
Employees
• 30,000 staff in information and communication mobile globally • 25,000 employees for all business sectors in china
6. Financial performance
• Sales • Profit
CHINA HAS DEVELOPED INTO A MAJOR PILLAR FOR SIEMENS BUSINESS IN ASIA PACIFIC
Location
• Based at Germany • 50+ JVs, 28 offices in China • Shanghai is the largest Siemens location outside Germany
suitable pricing targeting mid to low end of the market
• Invest in future products, e.g., TD-
SCDMA handsets and wireless home network devices, etc.
• Establish R&D centers for mobile
to handle repair and maintenance
Vision
• To be number 2 in the
Asian mobile communication market (without Japan and Korea)
SIEMENS IS RISING STEADILY IN MOBILE HANDSETS SINCE 1999
6. Financial performance
• Sales • Profit
KEY ISSUES TO PROBE - SIEMENS
Strategy
Product/market
Value chain strategy
Organization & ownership
Financial performance
communication in Beijing and Shanghai
• Mobile handset production capacity
being raised to 14 million in Shanghai, a growth of 40% since 2000
• Intensive marketing on new products
market share quickly since 1999?
• How does Siemens’s distribution channel differ from its
competitors’?
• How capable is Siemens in R&D, manufacturing, sales
CONFIDENTIAL