Case Study Description of Siemens Corp. (A): Corporate Advertising for 1992
Describes the approach of the German-based multinational company, Siemens Corp., to establishing an identity in the United States. The specific goals for the 1991-92 corporate advertising campaign are described. Examples of print and television messages are included, using the core theme "That was then--This is now." Target audiences are identified, and the program's media, budget, and methods of evaluating the campaign are also described. Acquaints students with the objective and detailed program specifics of corporate advertising campaigns. Examines how a non-U.S. based company seeks to build corporate awareness and identity in the U.S. despite very limited product exposure to consumers.
Swot Analysis of "Siemens Corp. (A): Corporate Advertising for 1992" written by Stephen A. Greyser, Norman Klein includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Siemens Advertising facing as an external strategic factors. Some of the topics covered in Siemens Corp. (A): Corporate Advertising for 1992 case study are - Strategic Management Strategies, Public relations and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Siemens Corp. (A): Corporate Advertising for 1992 casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing commodity prices, technology disruption,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Siemens Corp. (A): Corporate Advertising for 1992
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Siemens Corp. (A): Corporate Advertising for 1992 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Siemens Advertising, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Siemens Advertising operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Siemens Corp. (A): Corporate Advertising for 1992 can be done for the following purposes –
1. Strategic planning using facts provided in Siemens Corp. (A): Corporate Advertising for 1992 case study
2. Improving business portfolio management of Siemens Advertising
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Siemens Advertising
Strengths Siemens Corp. (A): Corporate Advertising for 1992 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Siemens Advertising in Siemens Corp. (A): Corporate Advertising for 1992 Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Siemens Advertising are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Diverse revenue streams
– Siemens Advertising is present in almost all the verticals within the industry. This has provided firm in Siemens Corp. (A): Corporate Advertising for 1992 case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Effective Research and Development (R&D)
– Siemens Advertising has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Siemens Corp. (A): Corporate Advertising for 1992 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Sales & Marketing industry
– Siemens Corp. (A): Corporate Advertising for 1992 firm has clearly differentiated products in the market place. This has enabled Siemens Advertising to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Siemens Advertising to invest into research and development (R&D) and innovation.
Innovation driven organization
– Siemens Advertising is one of the most innovative firm in sector. Manager in Siemens Corp. (A): Corporate Advertising for 1992 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Siemens Advertising is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Siemens Advertising in the sector have low bargaining power. Siemens Corp. (A): Corporate Advertising for 1992 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Siemens Advertising to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Siemens Advertising is one of the leading recruiters in the industry. Managers in the Siemens Corp. (A): Corporate Advertising for 1992 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Siemens Advertising digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Siemens Advertising has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Highly skilled collaborators
– Siemens Advertising has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Siemens Corp. (A): Corporate Advertising for 1992 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Siemens Advertising is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Stephen A. Greyser, Norman Klein can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Successful track record of launching new products
– Siemens Advertising has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Siemens Advertising has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses Siemens Corp. (A): Corporate Advertising for 1992 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Siemens Corp. (A): Corporate Advertising for 1992 are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Siemens Corp. (A): Corporate Advertising for 1992 HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Siemens Advertising has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Siemens Corp. (A): Corporate Advertising for 1992, is just above the industry average. Siemens Advertising needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Capital Spending Reduction
– Even during the low interest decade, Siemens Advertising has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
No frontier risks strategy
– After analyzing the HBR case study Siemens Corp. (A): Corporate Advertising for 1992, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Lack of clear differentiation of Siemens Advertising products
– To increase the profitability and margins on the products, Siemens Advertising needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Siemens Advertising is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Siemens Corp. (A): Corporate Advertising for 1992 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Siemens Advertising has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High operating costs
– Compare to the competitors, firm in the HBR case study Siemens Corp. (A): Corporate Advertising for 1992 has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Siemens Advertising 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Siemens Advertising has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Siemens Corp. (A): Corporate Advertising for 1992, in the dynamic environment Siemens Advertising has struggled to respond to the nimble upstart competition. Siemens Advertising has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Siemens Advertising supply chain. Even after few cautionary changes mentioned in the HBR case study - Siemens Corp. (A): Corporate Advertising for 1992, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Siemens Advertising vulnerable to further global disruptions in South East Asia.
Opportunities Siemens Corp. (A): Corporate Advertising for 1992 | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Siemens Corp. (A): Corporate Advertising for 1992 are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Siemens Advertising is facing challenges because of the dominance of functional experts in the organization. Siemens Corp. (A): Corporate Advertising for 1992 case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Siemens Advertising has opened avenues for new revenue streams for the organization in the industry. This can help Siemens Advertising to build a more holistic ecosystem as suggested in the Siemens Corp. (A): Corporate Advertising for 1992 case study. Siemens Advertising can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Siemens Advertising in the consumer business. Now Siemens Advertising can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Siemens Advertising has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Siemens Corp. (A): Corporate Advertising for 1992 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Siemens Advertising to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Siemens Advertising can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Siemens Advertising can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Siemens Advertising to increase its market reach. Siemens Advertising will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Siemens Advertising to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Siemens Advertising to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Siemens Advertising can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Siemens Corp. (A): Corporate Advertising for 1992 suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Manufacturing automation
– Siemens Advertising can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Developing new processes and practices
– Siemens Advertising can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Siemens Advertising in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Siemens Advertising can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Siemens Corp. (A): Corporate Advertising for 1992 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Siemens Corp. (A): Corporate Advertising for 1992 are -
High dependence on third party suppliers
– Siemens Advertising high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Siemens Advertising business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Siemens Advertising has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Siemens Advertising needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Siemens Advertising will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Siemens Advertising can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Siemens Corp. (A): Corporate Advertising for 1992 .
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Siemens Advertising needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Siemens Advertising in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Siemens Advertising can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Siemens Corp. (A): Corporate Advertising for 1992, Siemens Advertising may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Stagnating economy with rate increase
– Siemens Advertising can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Regulatory challenges
– Siemens Advertising needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Siemens Advertising.
Weighted SWOT Analysis of Siemens Corp. (A): Corporate Advertising for 1992 Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Siemens Corp. (A): Corporate Advertising for 1992 needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Siemens Corp. (A): Corporate Advertising for 1992 is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Siemens Corp. (A): Corporate Advertising for 1992 is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Siemens Corp. (A): Corporate Advertising for 1992 is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Siemens Advertising needs to make to build a sustainable competitive advantage.
