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Siemens CerberusEco in China: Introducing low-frills products in a high-quality company Case Solution & Answer

This Case is about COMPETITIVE, STRATEGY MARKETING, SALES

PUBLICATION DATE: June 27, 2011 PRODUCT #: ES1231-PDF-ENG
Siemens CerberusEco in China Introducing low-frills products in a high-quality company case solution

The case is established in November 2007. Head of the business unit of Fire Safety and Security Products, Matthias Rebellius, needs to analyze about the China strategy for the fire systems unit. Siemens has a highly powerful position globally in fire systems. Primarily in the developed markets, in the so called M1 sections, Siemens is commonly two or number one.

However world-wide and particularly in China, the so called M2 and M3 marketplaces (Siemens language) had strong surge, but Siemens was not very well placed in these sections of the marketplace. The case initiates with a brief introduction summarizing the scenario. It then provides a thorough history on Siemens, especially the running office Building Technologies (BT), and within BT the business unit Fire Safety & Security Products (FS). The case presents an example of the BT office and was primarily active in marketplaces that are mature, developed with slow growth rates. At exactly the same time, there was an aggressive goal of attaining annual growth rates of more than five percent with an EBIT margin of 7 to 10%.

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