Siemens Compiled Info

PORTERS 5 FORCES ANALYSIS: It is a powerful tool to understand that where power lies in business. And this tool gives understanding about strength of the company. And it also helps to avoid taking wrong steps in future. To stay ahead and successful in this competitive market Siemens use Porters 5 forces analysis against their competitors. Porters 5 forces analysis describes:

Supplier Power

Buyer Power

Competitive Rivalry

Threats of substitution

Threats of New Entrants

Supplier Power : Supplier power defines bargaining of power of the suppliers. It means how much it is easier for your suppliers to hike their prices. It is proved that in today's market it is very difficult for the companies to make profit because of recession. Siemens is having many competitors like Cisco, haier, hitachi, Larson and Tubro, Ericsson, Phillips, Samsung, Toshiba, Vestas Wind system etc. All of these major corporations are suffering because of "Recession". And because of this all the companies approach their suppliers to cut their prices and it is very difficult for the suppliers to sell their goods on very low price with less profit margin. And because of this most of the big companies prefer to buy goods from abroad at very low cost for e.g. China. From china they buy goods for very cheaper price and sold their products to the customers at reasonable price.

Buyer power : Buyer power defines bargaining power of the customers. In today's business market people are become more intelligent and more concern about product price and quality. And they choose that kind of products which makes their life easier and use that product in daily life. Siemens understands their customers needs very well and always provide best price and quality to their customers. Siemens provides best consumer products like hearing instruments, home appliances and lighting. It is very important for the companies to understand customers demand and all the business environment is running or changing according to...