Case Study Of Siemens: Suversified Initiatives In Alternative Energy

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Siemens diversified efforts in alternative energy starting in the mid 1980s. Alternative-energy generation technologies remain a major priority within Siemens, with a primary emphasis on wind and solar application. However, Siemens has grown to become the second largest employer in Germany with 427,000 employees worldwide in 2009. The three main sectors are industry, energy, and health care. These three main sectors were divided into 15 divisions. These three main sectors together comprise approximately 95 percent of company revenues and profits. The energy sector earned 33 percent of the overall company revenues, but 42 percent of the profits. The energy sector was subdivided into five divisions, including fossil power generation, renewable …show more content…
Also, Siemens led the market for in turnkey CSP plants such as the concentrated solar power. Considering that Siemens is such a large company, i recommend that smaller companies should be tapped, vis long-term contracts and equity alliances, for both intellectual and physical resources. Depending on the value derived from the smaller company, Siemens should consider purchasing the company outright. For instance, Siemens worked with the Norwegian company StatoiHydro to develop the world’s first floating wind turbine. Depending on the realistic value floating wind turbines, Siemens could potentially become better positioned in the market by purchasing StatoiHydro. The competition factors are: the technological progress has been noteworthy, massive upward potential demand, fast growing industry, GE is active worldwide, Siemens pose a long history in euro zone with 57% global market revenue. GE has the largest market in U.S. with 46% global market revenue. Therefore, first mover is a better choice since a strong competition is behind. The advantages of first mover strategy are: substantial market share due to lack of competition, technological leadership, gaining control of resources, preemption of location in geographic, select the most attractive niches, strategic actions that limit the amount of space available, establishing an optimum positions, and switching costs and customers

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