Siemens Essay

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Siemens is a German Multi National engineering and electronic conglomerate company, which has headquarters in Berlin and Munich. Siemens was one of the largest companies in the world. Currently it is the world’s largest electronic and electronic engineering company in the world. Werner Von Siemens started the company in October 1847; their first occupation was substituting use of telegraph instead of Morse code, which was the mode of communication in those days. In 1937 Siemens opened an electric motor works plant in small town in Germany called Bad Neustadt to manufacture refrigerator motors for model called Volkskuhlschraenke (people's refrigerators). Later they expanded their EMW business and diversified into production of various types of motors. However, during World War 2 there was only one factory in West Germany, which survived the bombing and the atrocities and was capable of producing electronic motors. All the other factories were destroyed or seized by the eastern bloc countries. After aggressive rebuilding operations of the factory, the plant emerged as the leading primary producer of electric motors. After the rebuilding, Siemens started to produce electric motors, such as standard motors and customized motors. The market for standard motors was highly competitive. The firm had to participate in intense price cutting competition to increase their sales and still make profits. Standard motors accounted for a large proportion of annual volume, and it was extremely competitive in the market. Its production process was manufacturing a single type of motor in a long run. The main issue for Siemens to operate during this initial period was the high costs of their products against lower labor rates of its competitors, but the firm still made profit under pressure of reduce costs. The firm figured out in 1980’s that it could not lower its cost

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