Case Study of Schneider Electric

This case study explores Schneider Electric, a multinational corporation specializing in energy management and automation solutions. Learn about their key partners, customer segments, key activities, value propositions, customer relationships, key resources, channels, cost structure, and revenue streams.

CASE STUDY
OF
SCHNEIDER
ELECTRIC

DESCRIPTION OF CASE STUDY OF SCHNEIDER
ELECTRIC
• Schneider Electric SE is one of the multinational corporations which is based in France and the
company is headquartered at Rueil Malmaison. As per 2019, the company has more than 137000
employees working in the organization all over the world (Schneider.com 2019)
• Schneider Electric is one of the global leaders in the energy management along with automation
which is operating in more than 100 countries and selling Business to Business and Business to
Customers

CONTD….
• The company was founded in the year 1836 and the products which are sold by them is
inclusive of automation of building, industrial safety systems and electric power distribution
(Schneider.com 2019)
• The revenue which has been earned by the company has increased €24.74 billion till the year
2017 (Schneider.com 2019)
• The company has powered smarter innovation techniques to achieve the real value to the
customers

BUSINESS CANVAS MODEL

KEY PARTNERS
• Subsidiaries
• Shareholders
• Research Ecosystem (Inclusive of universities such as University of Rhode Island, partners, suppliers
along with customers)
• Equipment Manufacturers – Aichi Tokei Denki Co Ltd and Apex Supply Chain Technologies
• Engineering Community- Public relations & positioning and community engagement
• Strategic type of acquisitions in new economies and mature countries through offering complementary
products and solutions
From the key partners, it can be identified that the company is following the optimization aspect through
which they are trying to reach out to the different customers and improve the satisfaction level of the
customers appropriately

CUSTOMER SEGMENTS
• Equipment manufacturers
• Oil and gas companies
• Mining Companies
• Food and Beverage Companies
• Healthcare- AIDES and La Borde clinic
From the above customer segments, it can be analyzed that the company is targeting the mass market as
they are offering their different products and services to all the customers as per their needs and demands
and they are functioning in an operative manner. Aichi Tokei Denki Co Ltd and Apex Supply Chain
Technologies are the two major equipment suppliers which helps Schneider Electric in improving their
financial service and improve the safety of the patients.

KEY ACTIVITIES
• Manufacturing
• Engineering
• Automation of Home
• Distribution of electric power
• Electrical grid automation
• Networking along with distribution
• Sockets and switches
From the key activities of the company, it can be identified that they are following the problem solving and creating
platform for the customers in the market as to improve their experience while dealing with them. Through the help of the
different equipment suppliers, Schneider Electric has been able to solve the problems in hospitals by improving the safety of
the patients and build better hospital along with boosting the satisfaction among the patients.

VALUE PROPOSITIONS
• Redefining the concept of power and automating for a new world of energy
• High quality products are being provided to customers
• Strong commitment towards sustainable development
• Advanced solutions and technology
• Automation and management of energy
From the value propositions, it can be identified that the value proposition which has been managed by the
company is that the prices and performance of the products are satisfactory and it is accessible to the
customers at various places. The design of the products are unique and the brand image of the company is
strong in nature which are the various aspects of the value propositions. Through the help of the different
equipment, Schneider Electric Company has been able to provide advanced solutions through boosting the
satisfaction among patients and increasing in the productivity of the staffs.

CUSTOMER RELATIONSHIP
• Reliable and safe (As it is helpful in protecting the patients in hospitals and build a better hospital)
• Sustainable and Efficient
• Innovation and leadership aspects
• Awareness regarding the brand- Through operating in different sectors and build strong brand image due to the
services provided by them
• Trust and post sales service
• Technologically advanced – Increased the productivity among staffs in hospitals and reinforcement of the security of
the hospitals
• Collaborative – Schneider Electric has collaborated with various manufacturers who helps them in achieving the goals
From the above aspects, it is identified and analyzed that the respective company has followed the automated service
along with personnel services which is effective and it enhances the overall sustainability of the company.

KEY RESOURCES
• Data Centres
• Technological Advancement
• More than 137000 employees working in the organization
• The presence of the company is in more than 100 countries and the company follows open
innovation techniques
• More than 8500 research and development related engineers worldwide through proper
networking and technological advancements

CONTD…
• The organization has more than 2000 patents either in application or active form in the entire
world
• Strategic Type of Innovation along with various innovative solutions
• Legacy related portfolio inclusive of distribution of electricity, industrial control and
automation of the different products and services
From the above, it can be identified and analyzed that the respective company utilizes both
financial, human and human capital which plays a beneficial role to deliver the appropriate
services to the customers and improve their expectations related to the services which are being
provided to them.

CHANNELS
• Official Website of the company
• Global presence in the world through development of strategy and business plan along with
readiness of the products which are sold by them
• Regional and Corporate Offices
• Authorized Representatives and Distributors
From the perspective of the channels, it can be analyzed that the channels of the company are
effective as they reach out to the different customers with the help of the different distributors and it
helps in creating overall impact on the sales of the company and it is competitive in nature.

CONTD…
• Social Media –(Facebook and Twitter)
• Events along with Blogs- Twitter
• Stories related to customer services
• Foundation
From the respective aspect of the channels, it can be identified that Schneider Electric company can
be helpful in connecting with the customers and improving the overall brand image of the company
in an appropriate manner. Through the help of the social media channels and partner, it can be
assumed that Schneider Electric has been successful.

COST STRUCTURE
• Headquarters
• Offices
• Cost of Manufacturing
• Production
• Customer care
• Employees
From the overall cost structure of the company, it can be identified that the company has opted for cost driven and value
driven aspects that helps them in managing the different activities of the organization in an appropriate manner. The
respective organization implements the value driven aspects which will be beneficial for the overall growth of the firm.

CONTD…
• Taxes and Legal Aspects
• Schneider Invests in the different start-ups which are innovative as it helps them in becoming
more popular among the individuals and gain competitive advantage
• Different components and parts of the various machineries and other products
From the overall cost structure of the company, it can be identified that Schneider follows the
economies of scale and value driven concepts that will be helpful for the company to become
competitive in their operations and performance.

REVENUE STREAMS
• Licencing
• Consulting and Service fees
• Sales of automation solutions
From the overall analysis of the revenue streams, it can be identified and analyzed that licencing
is one of the most essential aspects which is being used by the company wherein revenue is
generated from charging for the overall utilisation of the intellectual property.

CONTD…
• Spanning Hardware
• Sale of energy management solutions
From the overall revenue streams, it can be identified that there are different revenues which are
generated from charging fees for the products advertising.

BUSINESS MODEL OF
SCHNEIDER ELECTRIC
• From the business canvas model of the Schneider Electric Company, it can be identified that
the company mainly specializes in energy management, solutions to automation along with
software services.
• Furthermore, the company mainly specialized in value driven services which will be provided
to the customers that will be helpful in solving the different issues appropriately.

REFERENCES
• Schneider.com 2019 Schneider & Company: Home – Corporate (online) Retrieved from
www.schneider-company.com/ [Accessed on 19 Mar 2019]