Report: Business Model Canvas Analysis of Schneider Electric Company

This report presents an analysis of Schneider Electric's business model using the Business Model Canvas. It begins with an introduction to the company, highlighting its global presence in energy management and automation. The core of the report applies the Business Model Canvas framework, dissecting key aspects such as customer segments (healthcare, technology, etc.), value propositions (reliable products, energy solutions), channels (distribution, social media), customer relationships, revenue streams (licensing, service fees), key resources, key activities (manufacturing, engineering), key partnerships (research ecosystem), and cost structure. The analysis identifies Schneider Electric's focus on value-driven services, competitive strategies, and recommendations for improvement, including differentiated pricing and exploring new revenue streams. The report concludes that Schneider Electric's business model prioritizes energy management and automation solutions, aiming to provide customer satisfaction and maintain a competitive edge. The recommendations include a differentiated pricing strategy and exploring new revenue streams.

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Management
Name of the Student
Name of the University
Author note

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Abstract
The report has thrown light on the overall analysis of the business canvas model of the
respective company Schneider Electric Company. From the business canvas model of the
company, it can be identified that the company mainly focuses on the energy consumption
company which helps them in becoming one of the most active companies in the
organization. Lastly, the recommendations which have been analyzed are the inclusion of
grabbing the different opportunities such as differentiated pricing strategy which helped in
managing the overall effectiveness of the company.

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Table of Contents
Introduction................................................................................................................................3
Overview of Case Study of Schneider Electric......................................................................3
Business Canvas Model of Schneider Electric...........................................................................4
Conclusion..................................................................................................................................8
Recommendations......................................................................................................................8
References and Bibliography...................................................................................................10

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Introduction
The report throws light on the overall analysis of the business canvas model of
Schneider Electric as to understand the different activities which are being performed by the
company. The various changes are required to be analyzed as it will be improving the overall
status of the business appropriately.
Overview of Case Study of Schneider Electric
Schneider Electric is the multinational organization that is headquartered at Rueil
Malmaison, and the company is based in France. More than 137000 employees are working
in the organization in the entire worldwide. It is one of the global leaders in the automation as
well as energy management that are operating their business in more than hundred countries
and selling Business to Business and Business to Customers (Schneider.com 2019).
The organization was founded in the year 1836, and the different services which are
included in the organization are inclusive of industrial safety systems, building automation as
well as the distribution of electric power. The revenue that has been earned by the company
has increased €24.74 billion till 2017. The organization has powered techniques of smarter
innovation which helps in achieving the real value to the customers.
Business Canvas Model of Schneider Electric
Key Partners
The industry
Ecosystem
Shareholders and
Key Activities
Manufacturing
Engineering
along with
Value
Propositions
The
customers are
Customer
Relationships
Safe as well as
reliable
Customer
Segments
Equipment
and

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subsidiaries
The research
ecosystem
Manufacturers of
the equipment
Engineering
Community
Strategic
Acquisitions in
the new
economies by
offering different
complementary
products as well
as services
automation of
the home
Distribution of
the Electric
Power
Distribution as
well as
networking
Switches and
Sockets
provided with
high-quality
products
Strong
commitment
to sustainable
development
Automation
as well as
management
of energy
Advanced
technology
and solutions
Innovation as
well as
leadership
aspects
Efficient and
Sustainable
Collaborative
Manufacturers
Companies
related to oil
and gas
Food and
Beverage
Organizations
Mining
Organizations
Healthcare
Companies
Key
Resources
Data Centres
Advanced
technological
aspects
More than
137000
employees
working at the
company
Chann
els
The website of
the company
Global
presence in the
entire world
Authorized
distributors and
representatives

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8500 engineers
related to
research and
development
worldwide
through
networking
along with
advanced
technology
Regional
Corporate
Offices
Cost Structure
Headquarters
Offices
Cost of Manufacturing
Production
Customer care
Employees
Revenue Streams
Licensing
Consulting and Service Fees
Sales of automation solutions
From the business canvas model, it can be identified that the major and critical
partners of the Schneider Electric are inclusive of the research ecosystem such as the
University of Rhode Island, partners along with suppliers as well as the customers (Bahari,

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Maniak and Fernandez 2015). The major equipment manufacturers of the company are Aichi
Tokei Denki Co Ltd as well as Apex Supply Chain Technologies which helps the company in
becoming effective in their operations. The optimization concept is being followed by the
company, and respectively, the company is being able to reach to the customers and improve
customer satisfaction (Wainstein and Bumpus 2016).
On the other hand, the segments of the customers include healthcare companies such
as AIDES and La Borde Clinic and in the respective aspect, the company is following the
mass marketing as they are trying to offer the different products as well as services which is
as per the needs and wants of the customers (Urbinati, Chiaroni and Chiesa 2017). In
improving the financial service, it helps Schneider Electric in enhancing the overall financial
assistance as well as improve the patient’s safety.
As per the key activities, it can be identified and analyzed that the company is
following the problem solving as well as creating the proper platform for the different
customers in the respective market which improves the overall performance while dealing
with such customers (Toro-Jarrín, Ponce-Jaramillo and Güemes-Castorena 2016). With the
help of the critical activities, the company has been able to solve the hospital problems, and it
improves the patients and build the better hospital as well as boosting the performance of the
company appropriately as well.
From the value propositions of the company, it can be identified that the significant
aspect which is being followed by the company is price along with the performance of the
product as they want to create the satisfactory performance of the company and the
individuals (Lüdeke-Freund and Dembek 2017). With the help of the different equipment, the
company has been able to improve the safety of the patients in hospitals and to boost the
staff’s productivity level in the organization.

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From the customer segments, it can be identified that the organization is being able to
provide reliable and safe products to the customers. With proper reinforcement of the
different security of the hospitals, the company is following the automated service as well as
personnel services that helps in managing the overall effectiveness of the various operations
which are being performed at the organization (León et al. 2016).
The significant critical resources of the company are inclusive of the data centers,
and the respective organization tries to follow the human and financial capital which helps
them in delivering the appropriate services to customers.
From the channels of the company, it can be identified that the company wants to
provide the customers with the proper satisfaction as it helps in improving the overall brand
image of the company appropriately (Chen and Schneider 2015). The different social media
partners, it can be identified that Schneider Electric has been successful. The cost structure
has been successful wherein Schneider Electric follows the value is driven, and economies
of scale as it will be helpful to become competitive in the performance and operations.
Lastly, the revenue streams of the company, it can be identified that the revenue is generated
through proper charging for utilization of intellectual property (Caetano et al. 2017).
Conclusion
Therefore, it can be concluded that Schneider Electric Company mainly focuses on
energy management as well as providing solutions to the automation as well as software
related services. Moreover, the company has specialized primarily in the value-driven
services which are provided to the customers which helps them in becoming more
competitive in the operations, and it gives satisfaction to the customers.

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Recommendations
From the above business model canvas, the recommendations which can be provided
to Schneider Electric are as follows:
 Schneider Electric can implement the differentiation strategy related to pricing which
will be helpful for them in competing with the other competitors, and it will enable
the firm to maintain loyal customers with exceptional services and lure the new
customers with the value-oriented propositions
 There are new trends in the consumer behaviour which can create a unique
opportunity for Schneider Electric as it will help provide an excellent chance to
organization to build new revenue streams and diversify the categories related to new
product
 The new policy about taxation aspects can significantly impact the pattern of doing
the business and it will be beneficial for the company to become successful

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References and Bibliography
Bahari, N., Maniak, R. and Fernandez, V., 2015. Ecosystem business model design. In XXIVe
Conférence Internationale de Management Stratégique (pp. 1-18).
Caetano, A., Antunes, G., Pombinho, J., Bakhshandeh, M., Granjo, J., Borbinha, J. and Da
Silva, M.M., 2017. Representation and analysis of enterprise models with semantic
techniques: an application to ArchiMate, e3value and business model canvas. Knowledge and
Information Systems, 50(1), pp.315-346.
Chen, H. and Schneider, R., 2015. Numerical analysis of augmented plane wave methods for
full-potential electronic structure calculations. ESAIM: Mathematical Modelling and
Numerical Analysis, 49(3), pp.755-785.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S. and Namitulina, A., 2015. The innovative
business model canvas in the system of effective budgeting. Asian Social Science, 11(7),
pp.290-296.
Joyce, A. and Paquin, R.L., 2016. The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, pp.1474-1486.
Kraus, P.M., Tolstikhin, O.I., Baykusheva, D., Rupenyan, A., Schneider, J., Bisgaard, C.Z.,
Morishita, T., Jensen, F., Madsen, L.B. and Wörner, H.J., 2015. Observation of laser-induced
electronic structure in oriented polyatomic molecules. Nature communications, 6, p.7039.
León, M.C., Nieto-Hipólito, J.I., Garibaldi-Beltrán, J., Amaya-Parra, G., Luque-Morales, P.,
Magaña-Espinoza, P. and Aguilar-Velazco, J., 2016. Designing a model of a digital
ecosystem for healthcare and wellness using the business model canvas. Journal of medical
systems, 40(6), p.144.

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Lüdeke-Freund, F. and Dembek, K., 2017. Sustainable business model research and practice:
Emerging field or passing fancy?. Journal of Cleaner Production, 168, pp.1668-1678.
Schneider.com 2019 Schneider & Company: Home – Corporate (online) Retrieved from
www.schneider-company.com/ [Accessed on 5th April 2019]
Toro-Jarrín, M.A., Ponce-Jaramillo, I.E. and Güemes-Castorena, D., 2016. Methodology for
the building process integration of Business Model Canvas and Technological Roadmap.
Technological Forecasting and Social Change, 110, pp.213-225.
Urbinati, A., Chiaroni, D. and Chiesa, V., 2017. Towards a new taxonomy of circular
economy business models. Journal of Cleaner Production, 168, pp.487-498.
Wainstein, M.E. and Bumpus, A.G., 2016. Business models as drivers of the low carbon
power system transition: a multi-level perspective. Journal of Cleaner Production, 126,
pp.572-585.