Siemens' Turbulent Times: China's Strategy for Turning the Tide

Author: Wei Liwu
Publisher:
Publish Date: 2007-01-01
Features: Siemens, a renowned brand; Siemens, a low-profile company. For 20 years, multinational corporations entering China have held extremely high expectations for this largest regional market in the world, but they soon discovered that Chinese market operations are far more complex than imagined. In the highly competitive and profit-thin home appliance industry in China, which is hailed as "the most competitive and profit-slicing," foreign home appliance companies that came to seek gold started almost simultaneously but presented different survival conditions: Whirlpool hastily withdrew, Electrolux adjusted its stance, Samsung restarted, Panasonic temporarily failed, GE lingered until today, and only Siemens led the way. Siemens is one of the world's largest electrical and electronic companies. However, from arriving in China 10 years ago with substantial funds, to struggling painfully in adversity, to undergoing bold restructuring, and finally achieving fruitful results today—all of this has been happening quietly. The mysterious veil covering the heads of multinational corporations has always concealed Siemens' true face. The author of this book, Mr. Wei Liwu, is a senior executive at Siemens and has witnessed the hardships and determination of Siemens' decade-long effort. He tells you a real Siemens story. This book primarily focuses on the 10-year journey of Siemens Home Appliances, supplemented by the evolution of other multinational home appliance companies' survival and development in China. It highlights the dramatic changes in the Chinese home appliance industry from 1996 to 2006 over the 10-year period. The book mainly discusses: Why did Siemens Home Appliances, once in dire straits, undergo such earth-shaking changes in just a few years? What winding and arduous path did Siemens Home Appliances take in its 10-year development in China, and how did it eventually get back on track? What lessons can be drawn from Siemens' Chinese journey for multinational companies that are still struggling today? What implications does Siemens' success today hold for Chinese companies?