SWOT Analysis of Siemens. Siemens AG is a German multinational tech conglomerate. Werner Von Siemens laid the foundation of the tech company on October 01, 1847. The headquarter of the company is in Berlin and Munich, Germany.
Some of the main products and services of Siemens are as follows;
- Mobility Solutions
- Medical technology
- Industrial Automation
- Financial services
- Energy technology
- Drive technology
- Building Technology
Key statistical facts and figures about Siemens are as follows;
- The annual revenue of the tech company in 2022 was 71.977 billion Euros
- Out of which, the net income of Siemens was 4.392 billion Euros
- Approximately 311000 employees are working for the company to manage its worldwide operations
- Siemens family has the company’s ownership of 6.9%
Some of the main business divisions of Siemens are as follows;
- Financial services
- Smart Infrastructure
- Digital Industries
Some of the top competitors of Siemens are as follows;
- Schneider Electric
- Applied Material
- Dassault Systemes
- Rockwell Automation
Today, we’ll discuss the swot analysis of Siemens. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the tech company. Here’s the swot analysis of Siemens as follows;
Strengths of Siemens
Some of the main strengths in the swot analysis of Siemens are as follows;
Innovation and creativity in various categories like Cities, Infrastructure, Healthcare, and the Energy industry have allowed the company to achieve a market leadership position. In fact, Siemens is the pioneer in the tech services providing industry.
If we study the financial statement of the company, then we would realize that Siemens has got a strong financial position. The strong finances help the company to take on new projects and stabilize its position in the market.
Siemens is a well-recognized brand in the tech industry, and the company is operating its business in more than 190 countries across the world. Approximately more than 400,000 employees are working for the company to manage its global operations.
Siemens has made alliances and collaborated with the world’s leading brands and companies, and it has allowed the company to share knowledge, expertise, and resources. The collaboration and coordination with top companies allowed the company to improve the skill and expertise of its employees and amplify its standards.
Marketing & Advertisement
In order to recall its brand name, Siemens launches various marketing and promotional campaigns to remain active in the minds of customers. Some of the main types of marketing and promotional campaigns that the company has launched are as follows;
- Social media platforms
- Lifestyle events
- Sports events
Weaknesses of Siemens
Some of the main weaknesses in the swot analysis of Siemens are as follows;
Allegation of Corporate Corruption
There are various allegations and rumors of corruption in the corporate hierarchy of the company. In fact, some personnel of the company’s management have made it to the news and headlines. Such types of allegations and rumors are not for the reputation of the company in the short and long terms.
Reliance on 3rd Party Service Providers
According to an estimate, Siemens operates with roundabout 180 companies. It shows the extent to which the company heavily relies on the 3rd party service providers. However, over-reliance on the 3rd party service providers could put the company’s product and service quality at great risk.
Opportunities for Siemens
Some of the available opportunities in the swot analysis of Siemens are as follows;
The demand for electricity and electronics-related products and services has been increasing significantly for the past few years. Since Siemens is also operating its business in the tech industry, it shows great potential for the growth and sale of electric products of the company.
In order to maintain and strengthen its market position, Siemens should establish new research facilities and production and manufacturing units in various countries. It would help the company to diversify the risk of suppliers and product sourcing.
It is no doubt Siemens is operating its business in various markets across the world. But there are still various markets in the developing countries that haven’t been touched, the tech company should expand its operations in those markets. It would help the company to amplify sales and revenue.
Threats to Siemens
Some of the potential threats in the swot analysis of Siemens are as follows;
Reliance on Suppliers
Siemens is heavily relying on the 3rd party service providers and limited suppliers. It gives them huge bargaining power over the pricing, and they could jeopardize the company’s market position. Therefore, the company should diversify its suppliers and vendors, and use them in case of heavy demand and supply delays.
International political issues, conflicts, inflation, and the oil crisis have pushed the global economy into recession. When people have no job and low purchasing power, they won’t spend on luxury tech products and services.
Conclusion: Siemens SWOT Analysis
After an in-depth study of the swot analysis of Siemens; we have realized that Siemens is the world’s leading tech multinational company. If you are learning about the business of Siemens, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.