Facebook Pixel Code
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Porter Five Forces Analysis for Siemens AG

This is a preview of the 13-page document
Read full text

It is evidently clear from the discussion that in the industrial electrical equipment industry, buyers are generally commercial users, engineering companies, and governments of different countries. Products are highly technical in nature and specialized knowledge is required in order to evaluate purchased items. Generally, buyers need to sign the contract with companies in order to purchase equipment. Bargaining power of buyer has been reduced by three factors which are, 1- an absence of electrical equipment sellers who can meet a specialized need of buyers, 2- high switching cost and 3- a need of buyers to maintain the relationship with sellers throughout the project lifecycle for implementation of technical equipment.

Large electrical equipment companies buy electronic parts and raw materials from the variety of suppliers situated in different geographic locations. Due to the presence of multi-channel sourcing model and abundance of sourcing partners, companies do not rely on any particular supplier. On the other hand, many MNE electronic and engineering companies have their own production facilities to produce technical components that can be used in manufacturing complex electrical systems. Therefore, these MNE electronic and engineering companies have little dependency on suppliers.

The electrical equipment industry has been dominated by global players like Siemens AG and General Electric (GE) for more than 20 years. A new entrant needs to invest the huge amount of capital for establishing production plants, workshops, distribution channel and research & development (R& D) centers. Moreover, new entrants need to have sufficient resource capability, credentials and connections with government and big companies in order to sell their products. Presence of such entry barriers decreases the attractiveness of the industry among new entrants.

Within last 10 years, many small level companies and entrepreneurs have established the market for green technologies that can be classified as the potential substitute for electrical equipment being offered by existing companies.

This is a preview of the 13-page document
Open full text
Close ✕
Tracy Smith Editor&Proofreader
Expert in: Business, Management, Macro & Microeconomics
Hire an Editor
Matt Hamilton Writer
Expert in: Business, E-Commerce, Marketing
Hire a Writer
preview essay on Porter Five Forces Analysis for Siemens AG
  • Pages: 13 (3250 words)
  • Document Type: Essay
  • Subject: Business
  • Level: Undergraduate
WE CAN HELP TO FIND AN ESSAYDidn't find an essay?

Please type your essay title, choose your document type, enter your email and we send you essay samples

Contact Us