Strategic Analysis of Siemens Mobile Phone

Essay by sofysnUniversity, Master'sA, December 2006

download word file, 6 pages 4.5

External Environment


Mobile telecommunication is a mass product. The mobile phone market was practically saturated within ten years. In many countries, competition became so severe that operators started to substantially subsidise handsets in order to further increase their subscriber base. The evolution and development of handsets make it more functional and the service is much better. (Johnson Scholes and Whittington 2006)

The environment of the handset market is not optimistic for Siemens. There is no big consuming group like before. There are many producers of handsets who are competing for one market, so the slice everyone gets is definitely small. Siemens is the fourth largest handset player so the slice for Siemens is even smaller compared with Nokia, Motorola and Samsung. Siemens must have some special spots to attract customers in order to make more profits and stand steadily in the market.

Competitive forces

Siemens has developed from a small workshop to a large company which now owns six independent operating groups.

The Mobile Phone division offers products for all segments of the market, from teenagers in the light-user segment to business users interested in feature- and application-rich products. Siemens phones mostly have a reputation for being a symbol of German engineering skills. (Johnson Scholes and Whittington 2006) Many customers accept Siemens as a considerable company when buying mobile phones. Siemens has its own factories, product lines and researching experts to concentrate on the every specific part of mobile phones.


1. Large global market share

Siemens has 8% of the total global market shares. It is the forth largest producer among all. There is a certain customer loyalty for Siemens through the ages. With this large market share, it is maybe a little bit easier to hit the mark with its products. Customers may have much interest in...