In the electricity field, one of the major companies that deals with the value chain is known as Siemens company. This is the company that deals with electrification and has also started now dealing with medical, information technology help, power and many other advances. The Siemens India company has the goal of being recognized with engineering excellence, innovation and reliability. This is one of the world’s biggest producers of energy and other resource saving technologies. This is a pioneer in the infrastructure and software for the industry as it is also a leader in the medical diagnosis. This company also provides business financial solutions and the rail and wind power solutions.
Siemens is one of the biggest companies in this industry and therefore, has many strengths that are associated with it. This company has a very strong brand portfolio which states that this company has invested successfully and sensibly over the years making it possible for the organization to be able to expand in different departments on the name of the brand. The next strength is that this company has been able to provide a high level of customer satisfaction over the years with the services that they have provided. Customer relationship has been valued and good brand equity among the potential customers is available. The company is able to expand into new different projects as they have a strong free cash flow. The strong base of suppliers of raw materials that this company has managed to maintain is enabled them to supply far and wide. The next strength is that this company does have a very good performance in the new markets that it has entered. The company has been known to have a good return on capital expenditure and is a relatively successful execution of new project management help and generated good returns. The successful track record requires new product development which also includes product innovation.
There are weaknesses that are present in this company that have caused some issues such as for the long-term growth of siemens company may impact the days inventory is high compared to the competitors. The next weakness incudes that the company was not very good at product demand forecasting and that lead to a higher rate of opportunities that were missed and that was one of the reasons why the days inventory was high in comparison to the competitors. The company has also stated that they have not been able to tackle the challenges that are presented by the new segments and that has caused them to lose a small market share in the niche categories. The company does have another weakness that includes tackling the challenge of impaired financial planning that is not efficiently done and the current asset ratio and liquid asset ratios suggest that the company should be able to use the case in a more efficient manner. The products marketing requires more upgradation and a lot left to be desired. Even though the products are successful the unique selling point has not been clearly defined as that can lead to attack in this segment from the rest of the competitors. Siemens is a company that is successful in integrating firms however they are a failure at merging firms that have a different work culture.
The opportunities that this company has is that the government green drive also opens as an opportunity to get the contracts of the federal contractors. There is a new technology that can provide an opportunity to practice differentiated pricing strategy in the new market. It will enable the firm to maintain the loyal customers to the brand. There is a stable free cash flow that does provide a good opportunity to invest in the adjacent product segments. There are new environmental policies that have been established that are making it a creative filed and easier for other players in the industry to represent the great opportunity for siemens to gain a major part of the industry. There has been an economic uptick and increase in the customer spending and this can provide itself as an opportunity for siemens that will help in ensuring that they are able to expand.
The threats mainly include the increase in raw materials that pose as a threat to the siemens profitability. There are new technologies that are constantly developing that can cause a serious threat to the industry in the medium to ling term future. There is also a growing strength of local distributors that also present as a threat and in some markets as there is a high competition is paying higher margins to the local distributors. As there is a wide distribution of the different branches that are present in the different places it can be exposed to currency fluctuations and that can cause a volatile political climate.
The political factors of siemens include that there are sustainability forces that tends to be altered that can be influenced by the government on the infrastructure of the country. These political factors include the environment regulations, employment laws, tariffs, tax policy, trade restrictions, political stability and reforms.
The economic factors mainly include the interest rates and the inflation that is noted in the other countries, cost of living and working hours along with wages is an important part that needs to be considered to ensure that the impact on the organization is great and important.
There are a few social factors that re also considered in the analysis and this is important as it varies from country to country. The social factors mainly include the safety and health consciousness that is considered.
There are technological factors that are considered as that incudes highly competitive market arena. It also includes globalization; the factors include environmental and ecological aspects and available services as well as products.
The legal factors also include the certain laws and regulations which might have an effect on the business operations of an organization. There is also current legislation that tends to impact on the industry in the areas such as employment, safety, health and competition. There is a need for national and international laws where the organization will originate the business operations.
Environmental factors are important and need to be considered in this analysis as this is the factor that has a lasting impact on the future and will also determine the environmental factors. These factors involve the awareness of the seasonal or climate change or terrain variation. The analysis of the environment will include the internal and external elements and that is vital for the organization since it impacts on the performance of the organization.
This is a very big and company that does have a very big effect on the industry and that does have an impact on the country and organization around us. There is a need to increase the performance and management of the company that can be done with the help of the analysis that has been done and that will include the modifications hat can be made and that will allow the organization to flow and provide higher profits that are better than what is presently occurring.
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