A CRITICAL ANALYSIS OF SIEMENS INVERTER’S MARKETING STRATEGY IN CHINA

Abstract

Siemens is the world's leading electrical products company and the world's largest supplier of environmentally friendly technologies. Siemens provides technical system solutions and various high-tech products for different industries. Inverters have long been one of Siemens' main businesses, because they can control the speed of machines and save energy. With its advanced technology, Siemens has been a market leader in China's inverter industry, especially in the steel industry. Due to changes in China's economic environment and the situation of the steel industry, Siemens inverter is faced with limited market capacity growth in China's steel industry and its competitors adopt the strategy of low price, so it is necessary for Siemens to adjust its market strategy to maintain its competitive advantage.

Through PEST model, this paper analyzes the political environment, economic environment, social environment and technical environment faced by enterprises. By using Porter's five forces model to analyze the industry environment faced by the enterprise and introduce the inverter market and the competitive situation in the steel industry, it concludes that Siemens has more opportunities than threats, and the external environment is conducive to the development of the enterprise. Siemens has advantages in brand, technology, quality and other factors in the industry; At the same time, enterprises are facing the threat of price competition and the impact of low-end products on the market.

In this paper, the inverter in the steel market as an example, based on 4P analysis of the inverter in the steel industry marketing strategy, found the limitations of Siemens marketing strategy and put forward recommendations.