INDIVIDUAL REFLECTIVE ESSAY – STRATEGIC MANAGEMENT
INTRODUCTION
The essay has been carried out to reflect on the strategic management procedure of Siemens and how effectively the brand has been involved in the strategic management procedures to have effective strategies that have enabled the brand to attain a competitive advantage within the marketplace. Further, the study will proceed with the personal assessment and Analyzation and recommendation if any that could enable the brand to have more effective strategic management for the business. After going through the case study and the strategic management procedure of science I came to the solution that the brand is one of the diversified brands that have to utilize various effective strategies and frameworks from the initiation of business to reach the desired height in the marketplace.
The brand is almost successful with its strategy formation by undergoing the strategic management procedure through various models and frameworks like BCG Matrix and soft Matrix and porter generic strategy. Siemens is consistently found to be involved in these strategic management frameworks to analyze the internal, external and competitive environment to attain the competitive advantage within the market place according to me. As per my analysis, I have found that brand whenever wishes to expand its business the brand has involved in various strategic management procedures from analysis of product portfolio and competition through BCG matrix to the external environment analysis through PESTEL framework to have effective strategies that could enable the brand to grow and explore effectively within the marketplace.
I have observed that Siemens has grown extensively because of its effective product portfolio and the competition analysis through the BCG matrix. I found that the brand has utilized the framework effectively and is almost successful with its strategy formulation as per my observation (Hossain and Kader, 2020). The brand has observed through the strategic observation with the help of BCG matrix that some of its product segments like health care, energy and finances fall in the star segment therefore whenever the brand has to attain the competitive advantage brand focuses to place these products against its rivalries to attain the competitive advantage within the marketplace. Some of its product that falls in the dog's segment according to the BCG matrix, I have observed that the siemens went for dropping those particular products or avoiding further development of those products and put that safeguarded focus on to the cash cows product and according to me, it is one of the most strategic moves and the benefit that seamen’s have taken advantage of with the strategic formulation through the BCG matrix (Chiu and Lin, 2019). I have learned through the particular strategic move of siemens that every business in order to identify the factor that which products it could go for maximizing its production and which products need to be dropped could be effectively analyzed with the help of the BCG matrix for the product portfolio analysis.
I found that post the identification of the product portfolio to choose the product to maximize the production the seamen underwent the market analysis to analyze that in which particular market the product must be placed to grow and explore effectively and attain the competitive advantage over the others within the marketplace. I observed that the brand goes for utilizing the Ansoff matrix to identify the specific market and form the strategies accordingly to grow and explore effectively within the marketplace. I have learned through the strategic move of the Siemen that the businesses are able to identify the market within which market-specific products must be placed to grow and explore effectively. As I observed siemens whenever have to penetrate the market to attain the competitive advantage it has entered with its existing products and in the existing market and step by step grown successfully within the marketplace (Schawel and Billing, 2018). I found that when siemens started from the simple telegraph business than in the starting phase the business was concerned with the market penetration segment of the Ansoff matrix and has expanded its business effectively within the UK with its existing products like finances and healthcare but afterwards when the business identified that the business has the capability to expand in other markets than the brand has utilized the market development module to expand its market with its existing products. Siemens has placed its existing products while entering into the newer market and as a result today the brand has expanded its business into more than 190 countries across the world with its effective strategy formulation.
Siemens whenever has to come with newer products it goes with the product development module to place the newer products into the existing markets and I believe this to be one of the most effective moves of siemens to expand and enhance its loyal customer base. I also found that the brand when enters into the new market within the developing countries and assess that some specific product is in demand within the market and no other effective suppliers are there than in that case the brand proceeds with the diversification module of the Ansoff matrix to place the newer products within the newer market and that's one of the perfect strategies according to me to diversify any business effectively with newer products into the newer market (Dawes, 2018). Therefore, I concluded that siemens as per the needs and requirements have utilized the Ansoff matrix to formulate the effective strategies that have enabled the brand to attain a competitive advantage over the others within the marketplace.
After the effective identification of the product portfolio and the market, I found that the brands proceeded with the environmental analysis to analyze the internal-external and the competitive environment to formulate effective strategies that could minimize the adverse effects of these environmental factors and the brand could effectively grow and explore within the marketplace. There are various models and frameworks that are adopted and utilized by different businesses to analyze the environmental factors affecting the strategies formulation procedure. I observed that Siemens used to adopt the SWOT framework to analyze its internal environment and the brand is successful with its strategy formulation by identifying the strengths, weaknesses, opportunities and threats that could affect the business and accordingly the brand involves informing the strategies to proceed with its strengths to maximize its opportunities and work on its weakness to avoid the threats (Benzaghta, 2021). I observed that there were various strengths of Siemens like its huge customer base and the strong R&D department that enabled the business to grab the opportunities available and also the brand has avoided and worked on its weaknesses to minimize the threats (Cozmiuc and Petrisor, 2020). As the competition in the marketplace is very high and there were various competitors the brand proceeded to work on its weakness by formulating effective strategies and I found this move of the brand to be one of the strategic moves that have enabled the business to minimize the influences of the internal factors affecting the business.
I found that the brand has adopted the porter five forces to assess the competitive environmental factors which have enabled siemens to assess the level of bargaining power of the buyers and suppliers, the threat of substitutes and new entrants as well as the threat from its tough rivalries like general electric and Hitachi and various others. I observed that the brand with the help of porter's 5 forces was effectively able to identify the competitive factors and accordingly involve in strategy formulation to have effective strategies that could enable the brand to attain the competitive advantage over the others (Goyal, 2020). I also observed that siemens is also involved in the analysis of the external environmental factors that affect the strategy formulation by adopting the PESTEL framework to assess the external environmental factors that may affect the strategy formulation procedure of the business to expand the business. When I critically assessed the growth and development of the business I found that the brand whenever goes for expanding the business into the newer market the brand proceeds with the external environment analysis to analyze the external factors that may affect the business (Pan et al., 2019). All the external factors like political, social, economic, technological and environmental factors that could affect the business were effectively assessed and analyzed by siemens to grow and explore effectively with effective strategies.
CONCLUSION
I came to the conclusion post going through the entire case study and the strategic formulation procedure of Siemens that the business is almost successful with its strategic management procedure but as the world is growing vastly and various newer and more effective analytical models and tools are being developed therefore the brand could be able to have more effective strategic management procedure by adopting those specific models. GE Mackenzie model which is one of the updated models and more effective than the BCG matrix could be taken into consideration to analyze the product portfolio and competitive environment more effectively. Similarly, other models like the porter generic strategy, blue ocean strategy, VRIO frameworks are some of the other effective alternatives that could enhance the strategic management of Siemens.
REFERENCES
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Chiu, C. C., and Lin, K. S. (2019). Rule-based BCG matrix for product portfolio analysis. In International Conference on Software Engineering, Artificial Intelligence, Networking and Parallel/Distributed Computing (pp. 17-32). Springer, Cham.
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