1. Siemens company

2. INTRODUCTION
Connection has long served as a potent sign of power. In the era before cell phones, popular culture served up presidents, and crime bosses who were never far from a prominently placed row of phones, demonstrating their importance at the hub of a vast nexus. Similarly, superheroes always owned special communications devices: for example, Bat phone of Batman. To be able to talk to anyone, at any time, without the mediator of the human messenger and without the messenger’s attendant delays, is a thoroughly modern success of human engineering.

3. INTRODUCTION
In 1983, Motorola introduced DynaTAC, now considered the first truly mobile telephone, and by the end of that year, the first commercial cellular phone systems were being used in Chicago and in the Baltimore/Washington, D.C. area. Nokia launched its own mobile phone, the cumbersome Cityman, in These first-generation cell phones were hardly elegant—many people called them “luggables” rather than “portables,” and as one reporter noted in The Guardian, “mobiles of that era are often compared to bricks, but this is unfair. Bricks are quite attractive and relatively light.” But they made up in symbolic importance what they lacked in style; only the most powerful and wealthiest people owned them. Indeed, in the 1980s, the only other people besides the elite and medical professionals who had mobile technologies at all (such as pagers) were presumed to be using them for evil reasons. Who else but a roaming drug dealer or prostitute would need to be accessible at all times?

4. INTRODUCTION
This changed in the 1990s, when cell phones became cheaper, smaller, and more readily available. The technology spread rapidly, as did the various names given to it: in Japan it is keitai, in China it’s sho ji, Germans call their cell phones handy, in France it is le portable or le G, and in Arabic, el mobile, telephone makhmul, or telephone gowal. In countries where cell phone use is still limited to the elite, its power as a symbol of wealth and prestige remains high. But in the rest of the world, it has become a technology for the masses. It is also true for a small and poor country like Bangladesh. Thanks to the man Prof. Dr. Yunees, who with his ability to see things from a different perspective, gave people of Bangladesh the accessibility to cell technology.

5. INTRODUCTION
After a slow start, because of the prices charged both by the cell phone manufacturers and cell service providers, the growth rate of the cell phone market in the early ‘00 in Bangladesh has been very high. Infect, it is higher than the countries that are manufacturing it or developed countries.
In the following pages, we as a group have tried to find out the attitudes and perception towards the Siemens cell phones by the young generation and whether the company can sustain in the near future as the competition is growing

6. COMPANY PROFILE 1.1 HISTORICAL BACKGROUND
Founded in : October 1847, at Berlin in Germany.
Founder : Werner Von Siemens & Johnson Georg Halsk
Named as: Telegraphen –Bausanstalt von Siemens and Halske.

7. HISTORICAL BACKGROUND
Telegraphen- Bauanstalt von Siemens & Halske”-the Siemens & Halske Telegraph Construction Company-was found in the mid 19th century, a time characterized by revolution and transformation in politics, industry and society. Technological progress altered people’s lives at a breathtaking pace and in ways previously unimagined. Through his inventions and innovative technologies available on a broad scale, Warner von siemens played a key role in furthering this process of change. The company he founded developed from a simple workshop into a major enterprise, which by the time World War-1 broke out, had advanced to become one of the world’s leading electrical companies.

8. HISTORICAL BACKGROUND
In 2003, Siemens turns 156 years old. Throughout the world there are few industrial companies of a similar size that can take back on such a long and successful history. Since it’s beginning as a small workshop in Berlin, the company has grown into global enterprise, with operations in 190 countries in Europe, the USA, Asia, Africa and Australia.

9. COMPANY PROFILE 1.2 SIEMENS IN BANGLADESH
Siemens has been operating around the globe in 190 countries with a work force of employees. The Company’s headquarter is in Germany, named Siemens AG. Siemens Bangladesh Limited is fully (100%) owned by Siemens AG. Siemens Bangladesh Limited started operating its business in Bangladesh as a part of its global operation from 15th February 1974, with three core areas of business. Since then the company had been diversifying and expanding its business areas, and continuing its success in the field of information and communication, automation and drive, generation and distribution, medical systems, lighting systems and home appliances.

10. SIEMENS IN BANGLADESH
Siemens has been involved in railway projects in the country since In 1968, it became the first direct foreign investor to start a joint venture with the government of Bangladesh to manufacture telephone switches and sets. From the beginning Siemens medical systems and solutions have been the country’s technology of choice in this sector. It was also succeeded in power generation and supply. In 1947 it was involved in constructing the “Ashugonj Power Plant” and since then it maintained a good business relationship with Bangladesh power sector. In recent years, it began marketing solar plants, which provide renewable energy to remote villages. it has been also playing a very prominent role in providing mobile handsets.

11. SIEMENS IN BANGLADESH
Siemens Bangladesh Limited has a huge prospect in developing country like Bangladeshi. In the last two decades Siemens Bangladesh Limited was especially successful in terms of revenue. Now its goal is to expand its businesses and achieve an impressive growth within the next few years.

12. COMPANY PROFILE 1.3 SIEMES BANGLADESH LIMITED (SBL)
Vision: “To provide the best solution and equipment for the customers.”
Mission: “To grow and increase value by implementing advanced technologies, new products and services to provide excellent solutions to satisfy customer’s requirements.”
Goal: “To achieve market leadership, profitability, good corporate citizenship and a sustainable growth.”

13. Objectives:
“The main objective of the company is to increase the market share in related diversified products and solutions in Bangladesh and to assure the potential customers of the quality and durability of the products. Although the products are a bit highly priced but it is the best bargain that money can buy. ”

14. PORTFOLIO OF SIEMENS BANGLADESH LIMITED
Siemens’ business portfolio comprises the following business areas:
Power generation (PG)
Transportation And distribution Systems (TD)
Medical Systems (MED)
Consumer Products
Home appliances
OSRAM (Lighting products)
Telecom and information technology (T & IT).

15. PORTFOLIO OF SIEMENS BANGLADESH LIMITED
Siemens Bangladesh Limited has related diversification and their product ranges are divided into different product lines. This decentralized structure gives the greatest degree of entrepreneurial responsibility and the ability to nurture the closest ties to their customers. At the same time, it enables Siemens to provide comprehensive, customer-focused, solutions and services for the local market.

16. THE MARKET SHARE OF THE MAJOR PLAYERS
As the cell phone companies were reluctant to provide their sales figures and market share data, we have to acquire the sales data’s from the retail stores of Eastern Plaza. Based on the data gathered and through some assumptions the market share of the major manufacturers look like the following:

17. THE MARKET SHARE OF THE MAJOR PLAYERS

18. THE MARKET SHARE OF THE MAJOR PLAYERS
Although from figure, we can see that Nokia dominates the market but in reality Siemens is the market leader. Nokia did not have any corporate office in Bangladesh and moreover, the cells of Nokia entered into Bangladesh through gray market activities and through Grameen contract. For the gray market sets, there were no import taxes and they were sold at lesser price.

19. THE MARKET SHARE OF THE MAJOR PLAYERS
But, the most important thing is that the market share of any of the firms does not secure their position in the industry. At any time, anyone can take over the market because there is no dominant firm in the industry. Moreover, Chinese manufacturers has enter the market . Bangladesh has allowed the Chinese manufacturers to set up China town in the Gazipur area. So, they might develop a competitive advantage and take away the market share from the existing players.
FIRMS
MARKET SHARE
Nokia
34%
Siemens
29%
Samsung
16%
Sony Erickson
11%
Alcatel 4% LG 2%
Others

20. THE MARKET SHARE OF THE MAJOR PLAYERS
But, the most important thing is that the market share of any of the firms does not secure their position in the industry. At any time, anyone can take over the market because there is no dominant firm in the industry. Moreover, Chinese manufacturers will enter the market very soon. Bangladesh has allowed the Chinese manufacturers to set up China town in the Gazipur area. So, they might develop a competitive advantage and take away the market share from the existing players.

21. PEST ANALYSIS POLITICAL ENVIRONMENT
Political environment is quite unstable that might affect Industry operation somewhat.
Frequent change in government policy regarding tax, import and the like might have an adverse effect to the industry.

22. POLITICAL ENVIRONMENT
Bangladesh has a trend of devaluation of currency over the past years. This indicates that the government is encouraging exports and discouraging imports. As the mobile companies in Bangladesh are importing their sets, the price of the sets for this reason is high.
There are complexities related to law and regulations. Couple of years back when army was in charge of eliminating crime, it was reported that they broke cell phones of students as they thought it was not required by them. This type of situation might have negative impact on parents and they might prevent their children to have a cell phone.
Government decision to enter mobile telecommunication industry might positively affect the industry.

23. ECONOMIC ENVIRONMENT Bangladesh has a very insignificant GDP and GNP.
Per capita income for the people of Bangladesh is also low. But what is impressive is that it is improving over time.
The current inflation rate (more than 6%) is higher than what it was in the past years.
Sudden rapid increase in energy price may have significant impact too.

24. ECONOMIC ENVIRONMENT
High tax imposition by the government will reduce the buying power of the consumers.
The successive governments were unable to collect taxes that are affecting the infrastructure development. Moreover, the policies taken by the previous and current governments are more helpful for employers than employees that are the labor. So, it affects the bargaining power of the majority of the people in Bangladesh.

25. ECONOMIC ENVIRONMENT
Worldwide negative economic impact after September 11, 2001affecting Bangladesh too.
Recent Iraq war is another reason for potential future sluggish situation of the economy.

26. SOCIAL ENVIRONMENT
The social value is in challenge as Bangladesh was identified as the number one corrupt nation in the world in a recent survey. So, it effect the general business condition and inflow of FDI.
In Bangladesh, society is clearly clustered in to different categories along different dimensions, for example, higher and lower class population in the society.

27. SOCIAL ENVIRONMENT
Cultural values are very strong but at the same time, always open to changes and new things.
Concern for quality is less important than concern for price.
Credit facilities are less likely to work in Bangladesh. But Grameen bank has proved small amount of loans or credits to rural poor people positive. So, in general as majority of the people lives in rural areas and are poor the small loan or credits can be successful. But for industrial credits, the default rate is high.

28. SOCIAL ENVIRONMENT
Families are mostly extended type of and prefer to live with others.
Most of the people are homesick too.
The perception towards young people having long hair is always negative by the elderly people of. For example, at night when they are seen in the roads people try to avoid them to save their cell phones and purses for being carried away.

29. SOCIAL ENVIRONMENT Need for affection is valued everywhere.
People think more in-group rather than individually.
Hi-tech products and services are mostly accepted as luxury rather than necessity. But as mobile has been proven to be one of the necessity products its implications has different means

30. TECHNOLOGICAL ENVIRONMENT
Technologically, Bangladesh is still far behind than the standard. But, the aggressive policy by the government towards IT industry and scopes that are created by the universities can help Bangladesh to become one of the major suppliers of IT workers.
Little focus on the development and training of technical skills.
Moreover, as there are many private universities who are not maintaining their standards the educational level overall is going down and hence, technological expertise is no improving. But, as Microsoft has just established their corporate office and wants closely in the development of IT professional and software experts, the technological environment might improve in the near future.

31. FACTORS INFLUENCING CONSUMER BEHAVIOR
PSYCHOLOGICAL
Motivation
Learning
Perception
Beliefs & Attitudes
THE BUYER
CULTURE
Culture
Sub Culture
Social Class
SOCIAL
Reference Group
Family
Roles & Status
PERSONAL
Age & Life Cycle Stage
Occupation
Economic Circumstances
Figure: Factors affecting consumer behavior

32. CULTURE
Culture in different region within Bangladesh is shaped by unique characteristics. People talk mostly in Bengali but the accent is somewhat different. Moreover, English is becoming a second language for Bangladeshi people.
The Religion is predominantly Islam but there are Hindus, Buddhist and Christians living all over the country.
There are many tribes in hill tracts of Bangladesh. They have their unique language and starting to get educated.

33. CULTURE The culture is very open towards change.
There are mainly two social classes – Higher and Lower. But sometimes we also consider Middle class too.
The respect towards elderly people is very high.

34. CULTURAL NORMS & VALUE SYSTEMS
CULTURE
CULTURAL NORMS & VALUE SYSTEMS
RELIGION
(Predominantly Islam)
POLITICAL PHILOSOPHY
(Democratic)
SOCIAL STRUCTURE
(Collectivist)
LANGUAGE
(Bengali but English is used as secondary language)
ECONOMIC PHILOSOPHY
(Free market but protectionism exists)
EDUCATION
(Quality of education is low in rural areas; Quality differs in other cities in relation to Dhaka; literacy rate low)
Figure XXX: Summary of our culture

35. Social
The family and friends plays a big role in individual decision-making.
The literacy rate is very low.
Crime rate is very high and in corruption Bangladesh is the leader.
Most of the families are extended type and prefers sharing things.

36. PERSONAL Most of the people are in 20 – 40 age-bracket.
Agricultural based occupation still dominates.
Industrial contribution towards GDP is increasing
Attitudes towards watching movies and seeing television by the teenagers are seen negatively.

37. PSYCHOLOGICAL
Learning curve is a bit slow, since most part of the population is illiterate.
In the rural areas blind faith towards materials does exist because of the illiteracy.

38. SIEMEN’S AVERAGE ANNUAL INCOME, EXPENSE, PROFIT, GROWTH
FOR LAST FIVE YEARS 2003 TO 2007
INCOME
AVG
PROFIT
AVG
YEARS
AVG
EXPENSE
GROWTH 6
2003 1
450000
200000 28 11
250000
2004 1 12 13 8
475000
400000
75000
2005
700000 18 1
110000 12
590000 19 25
800000
200000
2006 26 22 1
2007 1 33
240000 27 32 5 20
TOTAL
875000 20 20
TOTFAL CAPITAL INVESTED BY SIEMENSIS TK 7,00,000/=
IN YEAR 2002 TAKEN AS BASE YEAR

39. VARIABLES COVERED FOR SIEMENS
Income
Expenses
Profit
Growth

40. VARIABLES COVERED FOR SIEMENS
2003
2004
2005
2006
2007
INCOME
450000
475000
700000
EXPENSE
200000
400000
590000
800000
PROFIT
250000
75000
110000
240000
GROWTH
Table: SIEMEN’S Growth Rate, Income, Expense Profit from( )

41. INDUSTRY LIFE CYCLE
Before discussing in which the industry is in we have to see some variables that affect the industry life cycle. Let’s see the following figure to get an idea in which stage the cell phone industry lies. (The data’s for the following table has been collected from the mobile vendors of Eastern Plaza)

42. INDUSTRY LIFE CYCLE
Table: Bangladesh cell phone industries growth rate and new product launch
VARIABLES
2003
2004
2005
2006
2007
Growth rate
35%
10%
15%
28%
34%
New products
30%
33%
38%
46%
60%

43. INDUSTRY LIFE CYCLE
As we can see that the growth rate has been much higher in 2002 and 2003 than 2001, my analysis shows that the industry is in the growth stage. Moreover, as people are frequently changing their sets to get them used to with the new technologies and opportunities that the manufacturers are bringing to them, the industry can be found in the growth stage. The new products are helping the industry to remain in the growth stage. So, we can conclude that there are enough customers for each and every manufacturer to increase their sales and the industry is in growth stage.

44. INDUSTRY LIFE CYCLE

45. INDUSTRY LIFE CYCLE Shakeout Maturity Introductory Growth Decline
BD CELL PHONE INDUSTRY
Shakeout
Maturity
Introductory
Growth
Decline

46. SWOT ANALYSIS
STRENGTHS
WEAKNESS
OPPORTUNITIES
THREATS

47. STRENGTHS Wide product range. Strong local presence.
Favorable Brand Image.
Comprehensive Knowledge of the local market and client.
Good quality and top quality of products with solutions.
Made in Germany and standard is maintained by them.
Using advanced high tech technology.
Because of long-term experience, customers reliability and loyalty.
Efficient after sales service.

48. WEAKNESSES Lack of brand awareness.
Highest tax on home appliances ness.
Lack of consistency in promotional activities
Less competitive price; competitor sourcing product at cheaper price
High turnover rate of top officials.
Less organized distribution.
Less compliance to market demand.
Parts are not always available.
Limited Showroom.

49. OPPORTUNITIES
The major three sources of barriers to new entry are to gain: Brand loyalty, absolute cost advantage, economy of scale and government regulation. Among those, Siemens Bangladesh Limited has the brand loyalty because it has gained its experience in this field for more than 150 years worldwide, as well as its presence in Bangladesh since Besides, it created brand loyalty through continues advertising of the brand, company names, patent protection products, product innovation, and emphasized on high product quality and good after sales service. Siemens enjoyed regulatory protection, as Bangladesh Government is one of their prime customers of their power plants projects for along period. Thus, Siemens can eliminate the risk of entry by potential competitors with brand loyalty.

50. OPPORTUNITIES Ever rising telecomm industry.
Emerging markets for Apartment consumers and high raise building.
Urbanization and electrification of the country.
BTTB entering the wireless service industry.
Consumer preference on authorizes and purchasing at one stop.
High demand in communication and low penetration in the sector; investment forecast is around 1 billion US $ by public and private sector for the next 5 years.
Tax on mobile phones might be removed. Infact, it has been from TK.3000 to TK

51. THREATS
Siemens Bangladesh Ltd. does not manufacture the equipment or solution in Bangladesh rather imports that from the parent company- Siemens AG. As a result, it is not possible for them to have absolute cost advantage or economy of scale.
Recently the competition in the market has become stronger as many multinational companies have started their business. At the same time local companies are being established. They are becoming rivals of Siemens Bangladesh Limited. Especially Korean technology. Japanese technology used by other multinational company can offer a lower price to the customers. In some cases the local company is offering a moderate standard product at a cheap price. They are entering the competition gradually.

52. THREATS
Foreign currency fluctuations and devaluation of the local currency.
EURO getting higher than USD.
Higher tax on Home appliances
Large scale Gray market
Competitor sourcing product at a cheaper price,
Investors are not interested to invest more in Bangladesh because of the unstable political condition of our country. As a result there would be less industrializing than expected. It will reduce the sale.
Chinese competitors are very aggressive and offer a very lower price than Siemens.
Government is slow in decision due to inefficient administration.

53. RECOMMENDATIONS
Having analyzed the problems of the company and the opinion of the users and potential users of Siemens mobile phone, we are able to come up with the following recommendation to over the problem of unpopularity of the product among the young generation.
Special focus on the young generation as their target market:
We have seen that although Siemens is the market leader in selling mobile phones through the mobile phone operators, but they are far behind their competitors in selling to individual consumers. Again a very large portion of the individual consumer market is the young generation. Therefore, if Siemens can popularize their mobile phones among this target group, they are more likely to realize high growth potential in this particular segment.

54. RECOMMENDATIONS
Ensure consistent marketing strategy:
While marketing their mobile phones, Siemens should focus on delivering once single theme about the product to its target market. This is important because we saw respondents are unable to show any single reaction to this brand. Therefore with an integrated marketing communication Siemens can build better brand awareness.

55. RECOMMENDATIONS
Persuade Government to remove the tax on imported mobile phones:
One major problem that Siemens mobile phone faces is the high import duty it has to pay that increases its price. Since Siemens is one of the major suppliers of electric goods of the government, it may try to negotiate the import tax to be reduced, which would make Siemens mobile phone more competitive in the market.

56. RECOMMENDATIONS
Emphasis on the design of the mobile set to better fit the market demand:
In our survey, many of the respondents said that they don’t prefer Siemens mobile phone because its lack of style. Again when asked about the one thing that makes mobile phone attractive to them most people said looks and style. Therefore, Siemens should focus on improving the outlook of the mobile phone sets and ask them stylish enough to attract the young generation.

57. RECOMMENDATIONS
Penetrate the individual consumer more through retail stores:
Siemens have very few showroom in Bangladesh through which it sells the mobile phones to individual consumers. To increase its sales among this group, either it should open up more showrooms or should use the distribution intensely.

58. RECOMMENDATIONS
Provide special offers for young generation to popularize its product:
In order capture this lucrative market segment; Siemens should consider putting on extra effort to popularize the Siemens mobile phones among the young generation. Since we found through our research that if we remove the price factor from the product, the young generation would not mind using it. Therefore, Siemens may consider giving price discounts to young generation.

59. RECOMMENDATIONS
Emphasis on the design of the mobile set to better fit the market demand Conduct a survey to find the ways to improve the satisfaction of the users:
From this research we have found that the current users of Siemens mobile phone are not very satisfied compared to other two leading brands. Therefore, to overcome this problem, Siemens should conduct a market research to find out the problems associated with their product and reason for dissatisfaction of the consumer. Siemens should take necessary steps t improve o the findings of the research.

60. CONCLUSION
So a mobile company’s behavior is needed for whole of the options it gives and it is not abided with any unethical boundary. Most importantly the whole world is getting mostly dependent on mobile So in order to stay more attached to the current world of mechanized form it has become a vital issue for all of us. There for “SIEMENS” includes all kinds of mobile facilities which are for mostly needed for everyone. The criteria can be the most organized form of presenting information or reaching to the destination just on time. It is mostly needed for our world as the world is on the door way of technological advancement. It clearly states the sign of better future for the whole human race and SIEMENS is one of the most definite choice for those who uses mobiles.