International Marketing Strategies: Siemens Report Analysis

This report provides a comprehensive analysis of Siemens' international marketing strategies. It explores the company's approach to internationalization, examining various levels of international strategies and their impact on business responsiveness, multi-business synergy, and the balance between localization and globalization. The report delves into the role of disruptive technology, including e-commerce and other advanced technologies, in enhancing Siemens' competitiveness and fostering innovation. It also assesses the company's adoption of Michael Porter's generic competitive strategies, specifically cost leadership and differentiation. Furthermore, the report examines Siemens' commitment to sustainability, profitability, and corporate social responsibility, highlighting how these factors contribute to the company's success in the global market. The report includes a discussion of the advantages and disadvantages of the strategies employed, providing a well-rounded view of Siemens' international operations.

Running head: INTERNATIONAL MARKETING
International marketing
Name of student
Name of University
Author note

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Table of Contents
Introduction................................................................................................................................2
Question one: Levels of internationalisation strategies.............................................................2
Question four: Personal reflections on learning.......................................................................10
Conclusion................................................................................................................................11

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Introduction
The report is prepared to discuss about the strategic management from the
international context considering the business organisation named Siemens in United
Kingdom. For the multinational corporations, it is evident that the new and effective
disruptive technology has been favoured with application of ecommerce technology and also
through various approaches undertaken to prevent loss of market share and also make
adjustments with the changes made to operate within the concerned industry (Rothaermel
2017). The report will also present an idea about the level of international strategies and at
the same time, managed both demands for localisation as well as for globalisation. Moreover,
the application of disruptive technology and its effectiveness in extending the company’s
efforts towards international competitiveness will also be demonstrated along with the
management of corporate social responsibilities that can allow the company to achieve
sustainability, profit level in higher amount and also become successful in the global arena
too (Ansoff et al. 2018).
Question one: Levels of internationalisation strategies
The international strategies are implemented at various levels of the organisation
including the business level and also the corporate level. Due to this, not only the company
has benefited in terms of meeting the demands of business responsiveness, but also has
maintained multi business synergy, which is required for value creation and also for meeting
he globalisation as well as localisation demands and expectations within the competitive
marketplace (David and David 2013). As stated by Hill, Jones and Schilling (2014), while the
major fact is that the business level strategies are implemented for the purpose of enlarging
the customer and to attain desired level of profit, the corporate level strategy has been more
concerned with the understanding and knowledge acquisition about what to make purchase or

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sell. This would help Siemens to integrate its operations and develop synergies between them
so as to attain the business goals and objectives effectively too (De Wit and Meyer 2010).
These kinds of strategies are inclined with the corporate goals for meeting the needs of
people in the target market and also increase the profit level through proper positioning
against the competitors while remaining up to date with the market trends and also overcome
the challenges that might be experienced during the management of technological changes as
well. Eden and Ackermann (2013), also stated that the cost leadership and cost differentiation
strategies are the major business level strategies that have helped in promoting differentiation
of products and services while at the same time, set up prices that are competitive when
compared with the prices set by competitors for the products and services. This would help
the company to remain competitive and even allow the company to introduce something new
to keep up with the trends and made those available at a decent price (Eden and Ackermann
2013).
According to Hitt and Duane Ireland (2017), the corporate level strategies, on the
other hand, has helped in combining the different business units, which could allow for
enhancing the business efficiency and also manage better relationships between suppliers and
various other stakeholders for the management of demands and supply (Hitt and Duane
Ireland 2017). This kind of corporate level strategy should also help in the management of
financial accounting, reduce the risks and also manage effective financial services to ensure
that the cash flow remains consistent and also consistent support is provided to the customers
after purchases have been made from Siemens in United Kingdom. Based on the corporate
level strategy adopted by Siemens in UK, it has also allowed drawing different members
from various departments, thereby, manage different functions and processes along with
monitoring the progress consistently (Lasserre 2017). This would also be beneficial for
raising the production level and at the same time, enable innovation and creativity through

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development of management matrix where the various functions and processes have been
related to each other. Though the high performance and high coordination between the
departments are considered as major advantages, few drawbacks of the corporate level
strategy could be the conflicts and misunderstandings due to varied opinions and ideas, which
might not be acceptable among the other corporate team members while the corporate design
might sometimes not be as flexible as desired (Noe et al. 2017). This might further worsen
the company’s ability to innovate effectively considering the business organisation named
Siemens in United Kingdom (Siemens.com 2019).
The demands for business responsiveness have increased along with the need for
multi business synergy, localisation and globalisation, which could allow the company to
undertake necessary approaches and attain competitiveness within the international
marketplace. As stated by Lasserre (2017), considering the demands for localisation, it has
become very much important for Siemens to identify and address the key scopes and
opportunities that are related to it. The company should enable following the trade policies,
laws, rules and regulations and also emphasize on the changes in regulatory and political
environment so as to ensure successful penetration into the targeted global markets outside
the geographical limited nations (Mintzberg and Lampel 1999). This would also help in
overcoming the barriers associated with the control of import and export activities while at
the same time, manage proper traffic rates and trade barriers, thereby, facilitate the
organisational capability to set right prices and maage effective exchange controls required to
gain a good financial position as well as bring out positive outcomes too. Moreover, the
company would be able to promote global convergence by working with other companies
within the concerned sector and even promote international diversity where people from
different backgrounds and cultures could work together as an unit for meeting the demands of
both localisation and globalisation (Hill 2017). This would also resolve the uncertainties and

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ambiguities within the legal environment and even prevent limiting the ability to enforce
proper rights, responsibilities and laws that might be associated with the increase in costs of
operations and processes aligned with the compliance programs too. Based on the electronic
and electrical operations of the company, the globalisation has enabled manifestation of the
knowledge and technology acqusitions along with the advancement in technologies, which
could also create opportunity to excel (Drnevich and Croson 2013). The demands for
localisation and globalisation should also allow the company to facilitate technological
innovation and promote new inventions required to manage effective transfer of technology
and bring advancement too fir meeting the expectations of market comprising of customers
for Siemens in United Kingdom (Siemens.com 2019).
Question two: Disruptive technology and international competitiveness
According to Rothaermel (2017), the disruptive technology has been the latest form of
innovation that has changed the ways customers behave and also facilitate approaches
required to establish successful business functioning within the area where it operates. The
disruptive technology has helped in improving the effectiveness of systems and functions at
Siemens and made sure to develop new markets as well as value networks though by
disrupting the existing market and value networks along with displacement of alliances,
products, services and also the established markets (Rothaermel 2017). The company has
been associated with the use of this disruptive nature of technology by including ecommerce
technology and other advanced technologies so as to bring innovation and creativity all
throughout the business operations and processes. The disruptive technology thus has allowed
Siemens to replace the existing systems and structure and adopted the new changes to
facilitate value creation and also acquire the ability to respond to external environment and
overcome the threats that might be experienced in the future (Matt, Hess and Benlian 2015).

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The advantages that have been acquired by Siemens through adoption of the
disruptive technology include the ability or potential gained for handling the risks and
potentially control those by preventing those to occur again. Moreover, the disruptive
technology has acted as innovators for Siemens during the technology adoption life cycle,
which also favoured Siemens in UK to create a risk averse position. This could further allow
the organisation to foster greater innovation, creativity and prevent itself from losing bigger
market shares to the competitor within the concerned industry (Purce 2014). In terms of
globalisation and based on the demands, Siemens has dominated the sector by becoming one
of the largest companies in the electrical and electronic sector with a huge network
established all over the world and it has also been believed that the innovation aspects have
been the key to the entrepreneurial success (Siemens.com 2019).
From the statements made by Birkinshaw (2016), it is also true to believe that
Siemens, UK has adopted the disruptive technology so as to experience rapid yet consistent
and beneficial changes, for successfully operating the marketplace where it currently
operates. Furthermore, with the advancement of technology and extensive digitization,
Siemens UK has also used the Internet of Things, artificial intelligence or AI technology and
also the cloud computing architecture for promoting innovation (Birkinshaw 2016). Due to
this, not only has the company excelled in terms of innovation and creativity, but also has
remained actively engaged in all these areas of business such as the Information and
Communications system, Automation and control, Power, Transportation, Lightning and
energy and also medical facilities. Also stated by Boulouta and Pitelis (2014), with the
facilitation of innovation, the company has also managed to bring automation of processes
along with delivering world class technologies which improved the business performance
though with the reduction of costs associate with the business functions and processes.
Moreover, the power transmission and distribution has been possible effectively and also the

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wide range of application of Siemen’s products and services in the health care institutions
have improved the medical services (Boulouta and Pitelis 2014). With the disruptive
technologies, the company has also optimized the cost base according to the changing market
conditions, which also contributed to the attainment of good rates of return based on the
expenditures made, thereby, allowed the company to secure a good technological position
within the competitive business environment. Another example could be related to the use of
Blockchain technology, which allows for management of decentralised distributed ledger
(Galpin et al. 2015). This kind of system could help in maintaining a centralised server based
system and manage transactions over the transparent cryptographic network that should
record as well as verify transactions and prevent any kinds of unauthorised access
(Siemens.com 2019).
On the contrary, there have been few disadvantages as well, as stated by Boccardi et
al. (2014), such as with the consideration of example of disruptive technology for the block
chain technology, the technology lacked sufficient control that Government often preferred,
due to which, the regulated structure might be difficult to attain. Although, the automation of
processes is a major advantage, still, it has been suggested by many that the AI system often
lacked efficient decision making where the decisions were mostly made with the use of
algorithms and the inputs optimised, further caused complexities for the entire scenario
(Boccardi et al 2014).
Michael Porter’s generic competitive strategies
As already suggested in the previous section, the lower cost has to be attained with the
help of continuous process of optimising the operations. This would be possible with the help
of measuring the capacity adjustment and manage structural initiatives, furthermore, ensure
outsourcing activities by Siemens along with the management of joint ventures and

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streamlining of operations and product portfolios too. This would surely reduce the costs
incurred during the management of business operations (Lauer and D’Agostino Sr 2013). The
product differentiation, according to the Porters generic strategies, as stated by Brummer
(2015), has been applied at the company to align the products with the innovation
perspectives through addition of some differentiable features. This has enhanced the
effectiveness of the product and also easily raised awareness among customers, thereby,
influenced their buying behaviours too (Mintzberg, Ahlstrand and Lampel 2005).
Question three: Sustainability, profitability and social responsibility
The concept of sustainable development represents the management of sustainability
and its development considering the needs of the present generation but without
compromising of the needs and ability of people in the future. Siemen’s approach towards
sustainable development have been favoured with the organising of policies and principles
that are required to achieve the human development goals and objectives, furthermore,
acquire the best potential of the natural systems, resources and various other components that
are related to the protection of ecosystem and even benefit the society as a whole (Gao et al.
2016). Not only does the sustainable development means management of resources and
contributing to the benefit of the society, but also the company has managed an effective
compensation system that has been supported by the Mnaging Board of Director. The system
has been aligned with the regulatory policies, frameworks and requirements for maintaining a
good level of transparency and openness, which should benefit the various stakeholders,
especially the shareholders or investors and the employees of the organisation (Assembly
2015).
To promote sustainable development in various areas and functions of the
organisation, the CEO and Senior management team must be engaged together so as to

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achieve the corporate social responsibility objectives and at the same time, enhance the level
of corporate profitability that are required for growth and survival in the international or
global context. Also, stated by Griggs et al. (2013) that understanding the policies and
principles of sustainable development are critical for meeting the demands and expectations
of customers as well as contribute to the wellbeing to the society, furthermore, become
socially responsible as a whole. Siemens has made sure to form a smart infrastructure that has
connected the energy systems and building technologies with the smart infrastructure for the
purpose of reducing carbon emissions and preserve the natural resources by creating ;lesser
harmful effect on the environment, thereby, improve the sustainable performance of the
organisation and adapt to the change or shift in technological aspects (Griggs et al. 2013).
The smart infrastructure at Siemens has also benefited the company, in terms of
sustainable development, with the help of bringing together energy supply as well as by
bringing intelligent control all across the systems that link the low and medium voltage
electrification and control products too (Lasserre 2017). With the help of building this
technology integrated with the smart infrastructure, the company would be able to manage
automation of security in case of fire incidents and also ensure energy efficiency, thereby,
lower down he costs of operations associated with it too (Carley and Christie 2017).
According to Reid (2013), it has also been found that that management of
sustainability has been a major trend at present, due to which, the company has put
sustainable efforts towards decarbonisation for changing the way energy is generated and
diverted itself towards the renewable energy sources such as the biomass, photovoltaic, wind
energy, etc. Moreover, it has also been found that to promote sustainable development, the
company has conducted research and development activities for keeping up with the recent
trends and at the same time, deliver effective solutions for creating a string emphasis on
innovation and remain aligned with the corporate goals and objectives too (Reid 2013). At

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Siemens, the sustainable development has been considered as an effective way to achieve
long term growth and achieve the desired level of profit with ease and efficiency. Not only
does the decarbonisation has come into effect, but also the conservation of resources has been
made possible with the introduction of “Serve the environment” program. This has helped in
protection of climate as well as minimized the negative environmental impacts through
optimisation of wastes and management of resources through prevention of harmful
emissions too (Rothaermel 2017).
The social responsibility as an employer, at Siemens, UK, has allowed the employees
to enhance their skills through management of training sessions and perform to their
potential. Safety has been a matter of conviction, because of which, the organisation provided
safety equipment and necessary precautions aligned with the Health and Safety laws and
policies. The inclusion and diversity have been two major aspects of the organisation that has
helped in engaging people from different backgrounds, cultures and ethnicity, which fostered
diverse sets of skills management and experiences required to handle challenging jobs at
work much more comprehensively (Hill et al. 2014).
Siemens has also provided dual vocational education and training for strengthening
the learning and development procedures, thereby, make the employees continuously learn
and adapt to different situations for improving the digitalisation efficiency and also maintain
the quality standards properly (Mintzberg and Lampel 1999). The strategic management and
leadership further supported the company in putting relevant efforts that are required to
promote better access to newest and advanced technologies, gain access to educational
facilities while working at the company to promote learning and professional growth together
at the same time (Hitt and Duane Ireland 2017). By providing support and help to the
charities and to the people in need after the occurrence of natural disasters, the company has
provided enough support in the form of humanitarian aid along with financial support to

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benefit the community at large and ensure successful management of corporate social
responsibilities too (Siemens.com 2019).
Question four: Personal reflections on learning
From the analaysis of various aspects of the report, I have come to understand that the
organisation named Siemens in UK managed to emphasize on the international strategies
with the help of implementing he disruptive technology and by focusing on the management
of sustainable measures. This has helped the company to attain the business goals and even
improved the potential of the organisation to manage the corporate social responsibilities,
furthermore, promote better growth and substance in the international context. There were
few differences between the business level strategies and corporate level strategies, which
also were understood by me and it could allow me to progress in my professional career in
the future too The key benefits of the business and corporate level strategies included the
Increase of customer base for generating higher revenue and attain competitive advantage in
business whereas for the corporate level strategies, the main benefits included the
combination of different business units working together as an unit and maintain a steady
cash flow for ensuring continuous progress all throughout. In spite of the advantages, I have
found several drawbacks too such as the lack of proper control over business operations, poor
focus on sustainable development, lack of flexibility and few others such as higher costs
incurred due to consistent need of remaining up to date with the latest technologies and
systems. I have also understood about the importance of disruptive technology and
sustainable development, all of which are necessary aspects that could allow me to progress
in my career and gain professional growth effectively in the future.