Detailing S.W.O.T Analysis of Siemens

Updated on: Aug 24, 2021
Siemens Brand Logo - SWOT Analysis of Siemens - logo | IIDE

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Siemens is the world’s leading producer of energy-efficient and resource-saving technology, with an emphasis on automation, digitization, and electrification. The firm is a pioneer in the field of industry infrastructure solutions. 

In this blog, we shall discuss the SWOT Analysis of Siemens by covering its strengths, weaknesses, opportunities, and threats faced by the company. Let’s begin with learning more about the company first. 


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About Siemens 

SWOT Analysis of Siemens | IIDE


Siemens is a technology-based German company. It was founded back in 1847 by Werner Von Siemens and Johann Georg Halske. Having its headquarters in Munich, the company is widely spread in more than 200 countries. It operates with a commendable task force of over 293,000 employees. It is a conglomerate that is Europe’s largest industrial manufacturing company. 

Starting back in 1847 and sustaining successfully for all these years is something to be learnt from SIEMENS Business Model. In 2020, Siemens’ revenue surpassed 57 billion euros. Their major competitors are – Hitachi, Alfen, Philips and Schneider Electric.

Siemens ranked No.1 for the fifth time in a row on the Fortune Magazine’s World’s Most Admired Companies list. 

Now that we understand the company’s business and achievements, let’s dive right into its SWOT.


SWOT Analysis of Siemens

A SWOT Analysis is a technique for evaluating the four main areas of a business. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

A SWOT Analysis can help to make the most of the firm’s strengths. Developers can also lower the chances of failing by recognizing what is lacking and removing any threats that would otherwise catch the company off guard.

So, let’s get to know about Seimens’.


1. Siemens Strengths

Strengths are indications that the firm performs exceptionally well or in a way that sets it apart from its competition. The organization relies heavily on its strengths to sustain itself. Its major strengths include its worldwide presence, innovation, and its unique advertising. Let’s look at them in detail. 


  • The corporation is a global powerhouse that contributes to power production, transmission, distribution, smart grid technologies, and effective application throughout the electrification value chain.
  • The company employs 3,72,000 people in more than 200 countries and operates production and manufacturing facilities all around the world. 
  • In the United States, it has launched a new campaign dubbed “Ingenuity for Life” to highlight how technology affects not only business but society as a whole.
  • The corporation has invested in smart e-mobility solutions, with nearly 60% of its sites running entirely on renewable energy. These achievements are prominently shown in the company’s branding.
  • Siemens looks for instances of exceptional customer service and seeks to improve them. The company has a dedicated customer relationship management department that has been successful in achieving high levels of customer satisfaction and strong brand equity among future customers.


SWOT Analysis of Siemens | IIDE


2. Siemens Weaknesses

The organization’s weaknesses, like its strengths, are intrinsic aspects, so the company concentrates on its people, resources, systems, and procedures. It should consider what it could do better and what practices it should avoid. 


  • Huge dependency on third-party providers.
  • Less focus on Financial planning, current assets & liquid ratios suggests more scope of more Cash efficiency.
  • Siemens has a large number of lawsuits coming its way constantly. To settle claims that it systematically used bribery and slush funds to obtain public contracts around the world, the business must pay $1.6 billion to European and American companies. These losses are huge.
  • Siemens also had to pay cases relating to probes into whether bribes were used to secure contracts after the corporation pleaded guilty to using corrupt techniques in foreign commercial operations. 


3. Siemens Opportunites

Opportunities are potential avenues for growth and success that a company must capitalise upon. Opportunities frequently originate from conditions outside of the organization and necessitate planning for the future. 


  • The company has a strong track record in new areas and has developed competence in entering and succeeding in new markets. Siemens’ strategy of diversifying cycle risks in the markets by investing in other sectors has enabled the company to generate new revenue streams and diversify its revenue streams. Emerging markets, according to the business, are the global economy’s growth engines. Siemens has fueled expansion in countries such as Brazil, India, and Russia, as well as South Africa, Vietnam, and Thailand. So we can see that Siemens is clearly expanding into opportune markets perfectly.


  • Siemens has been able to implement distinct pricing strategies as a result of digitization, which will help the company retain existing clients while also attracting new ones. It has won new clients and invested a significant amount of money in online platforms. In Analytics, it has combined all of the technologies required for data-driven services, and it has proven capabilities in a variety of streams. As the organization’s new digital business models become more robust, it will assist the company in becoming a genuinely digital company. Thus digitisation is also a huge opportunity for Siemens.


SWOT Analysis of Siemens | IIDE


4. Siemens Threats

Threats include anything that can have a negative impact on the firm from the outside, such as supply chain issues, market fluctuations, or a recruitment shortage. Anticipating risks and taking action is critical before the company’s growth is hit. 


  • Siemens is a global corporation that must comply with various liability rules in various jurisdictions. It is also subject to significant currency changes as a result of the turbulent political atmosphere in a number of regions. The company’s profit dropped by 25% as a result of recent gasoline price increases. Siemens is aiming to save €1 billion in costs and has stated that it may have to slash employees as a result, particularly in low-performing departments. Economic swings thus have a significant impact on the company’s profits.


  • Competitors such as General Electric (GE), which is also a big healthcare provider, have gotten into the industrial equipment market. This is a huge threat. ABB, which has facilities in over 100 countries, is another competitor of Siemens. Consumers benefit from ABB’s “ABB Ability” digital solutions, which offer ground-breaking solutions. Schneider Electric is a competitor of Siemens, which now maintains the number one position grid automation, critical power, and data centre cooling General Electric, on the other hand, is considered Siemens’ major opponent.



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Siemens has many competitors, yet it strives to achieve excellence. A detailed study on its SWOT analysis revealed that its major strength is that it is a global company and has so much potential for growth, and using its opportunities like keeping up with new trends digitally can resolve its weakness and strengthen its market position. 

The future is digital and one needs to pace up and revolve its functioning digitally. The main marketing strategy used by Siemens is keeping a strong online presence on various social media platforms and selling its technology-based products and services online. This is how significant Digital Marketing is today. You can also upskill yourself digitally with IIDE. If you’re interested in Digital Marketing, our Free Masterclass on Digital Marketing Basics is a great place to begin.

Please let us know what you think about this analysis in the comments section below. Thank you for reading this, and if you enjoyed it, please share it with your circle.


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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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