Siemens CerberusEco in China: Introducing low-frills products in a high-quality company Harvard Case Solution & Analysis

The case is set in November 2007. Matthias Rebellius, director of fire safety business unit and product safety, is to decide on a strategy for a unit of China fire systems. Siemens has a very strong position in the world in the fire systems. Particularly in developed markets, the so-called M1 segment, Siemens is often the number one or two. But all over the world and especially in China, the so-called M2 and M3 markets (Siemens terminology) had strong growth, but Siemens is not well positioned in these market segments. The case starts with a brief introduction outlining the situation. He then gives details of Siemens, particularly in the operating division Building Technologies (BT), and for BT Fire Safety Business Unit Security Products (FS). The case shows that the division of BT mainly active in mature, developed market with slow growth. At the same time, there was an aggressive goal of achieving an annual growth rate of more than five percent from the EBIT margin of 7 to 10%. "Hide
by Martin Kupp, Olaf Plotner Source: ESMT - European School of Management and Technology 10 pages. Publication Date: June 27, 2011. Prod. #: ES1231-PDF-ENG

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