SWOT ANALYSIS

STRENGTHS:

• Formidable market presence with operations in 147 different countries.

• Three separate sectors ensuring diverse market throughout.

• Diversified customer base throughout the globe.

• Strong R&D capabilities with innovation as one of it’s core competency.

SWOT ANALYSIS

WEAKNESSES:

• Increasing debt to equity ratio.• Lack of diversity in management.• Allegation of posting rival’s business secrets

on its computer networks.• High dependence on third party providers.• Lack of proprietary technology and patents.• Weak supply chain.

SWOT ANALYSIS

OPPORTUNITIES:

• IT expansion• Technology change• Overseas projects• Market integration opening up• Strong position and growing opportunities

in other countries

SWOT ANALYSIS

THREATS:

• Low product pricing by competitors• Slowdown in global economy. • Less market share• The policies and promotional programs

adopted by other brands.

PEST ANALYSIS

Political factors:

• Beacon of political strength.• Reduction in tariffs on capital goods, the correction of

the inverted duty structures and the lowering of tariffs on non-ferrous metals are bound to be an across-the-board positive for the engineering sector.

• Government’s thrust care would benefit Siemens since it is well established in the health care segment.

• Export control policy of Siemens prohibits from participating, directly or indirectly, in the development, manufacturing.

PEST ANALYSIS

Economic factors:

• Slowing global economy resulted in a decline in investments.

• Company cut roughly four percent of its workforce as part of an overhaul resulting from recent economic woes saving nearly 1.2 billion euros.

• Internal changes are expected to regain investor confidence.

PEST ANALYSIS

Social factors:

• Increasing urbanization changes are exerting an ever-greater impact on the company in current times.

• Customers are highly discerning, educated and well informed thus emphasis is on value for money.

• Customer Inspired Solutions – to design breakthrough products.

• Preference for energy efficient vehicles with low running costs.

PEST ANALYSIS

Technological factors:

• High tech and electronics companies like Siemens face a variety of challenging business imperatives due to developing technology.

• Must develop and deliver products that are highly innovative and cost sensitive while competing in the distributed global market.

• Company is continued to being squeezed by aggressive price points, product design complexities, regulatory requirements and continually changing technology.

• Erode profit margins, contribute to commoditization, complicate the manufacturing process and slow the take-market cycle.