Problems they face in Bangladesh

A multinational conglomerate with operations in several sectors, including infrastructure,

healthcare, and energy, is Siemens AG. Siemens has several difficulties and issues, just like
many other businesses doing business in Bangladesh. The following are some of the major
problems the company could run against in Bangladesh:

Infrastructure: Bangladesh still has issues with its infrastructure, such as insufficient
power supplies, shoddy road systems, and constrained access to transportation. The
efficient delivery of Siemens' goods and services may be hampered by these problems.

Bureaucracy: Companies like Siemens may find it challenging to traverse the

bureaucratic system in Bangladesh and secure the requisite licenses and licenses due to
its slowness and complexity.

Corruption: In Bangladesh, corruption is a pervasive issue that can provide difficulties for
companies doing business there. Corruption can result in unfair competition, higher
prices, and delays in the execution of projects.

Skilled labor shortage: Despite having a sizable population, Bangladesh lacks skilled
workers in certain professions like engineering and technology. This might make it
difficult for businesses like Siemens to hire suitable workers.

Regulatory compliance: Businesses operating in Bangladesh must adhere to regulatory

regulations. Yet, the country's regulatory framework can be complicated and ever-
changing, which can make it challenging for businesses like Siemens to adhere to all the
relevant requirements.

Competitor activities: Companies operating in Bangladesh that are both local and foreign
pose a serious threat to Siemens. The fact that these rivals might charge less or provide
 more cutting-edge goods and services can make it challenging for Siemens to hold onto
and expand its market share in the nation.

Limited market potential: Bangladesh's economy has grown slowly when compared to
other developing nations, giving it a modest market in the area. It may be challenging for
Siemens to justify investing in the nation given the small market potential.

Siemens continues to operate in Bangladesh and support its development, despite the difficulties
it faces. The challenges do not deter Siemens from staying in Bangladesh and helping the
country grow. Even with the obstacles, Siemens is determined to work in Bangladesh and assist
its progress.

Strategies they follow to mitigate such problems

Siemens follows several strategies to mitigate the problems and challenges it faces in
Bangladesh. Some of the key strategies include:
 Collaboration with local partners: Siemens has collaborated with local partners in
Bangladesh to execute various infrastructure projects. For example, Siemens partnered
with local companies to develop the Padma Bridge rail link, which is part of the country's
largest infrastructure project. Siemens has also partnered with local companies to
implement renewable energy projects, such as the installation of solar power systems in
rural areas.

 Investing in infrastructure: Siemens has invested in building and improving infrastructure

in Bangladesh. For example, Siemens has supplied gas turbines to power plants in the
country, including the Meghnaghat power plant. Siemens has also been involved in the
development of rail infrastructure, including the Dhaka Metro Rail Project.

 Building local talent: Siemens has set up training centers in Bangladesh to provide
technical and vocational training to students and workers. The Siemens Technical
Academy in Dhaka provides training programs in areas such as automation,
mechatronics, and electrical engineering. Siemens also supports educational institutions
in Bangladesh through various initiatives, such as the Siemens Scholarship Program.

 Implementing anti-corruption measures: Siemens has implemented various measures to

prevent corruption in its operations in Bangladesh. For example, Siemens has a
compliance program that includes training and awareness programs for employees and
suppliers. Siemens also conducts due diligence checks on business partners and suppliers
to ensure compliance with anti-corruption laws and regulations.

 Embracing sustainability: Siemens has set ambitious sustainability goals and is

committed to reducing its carbon footprint in Bangladesh. For example, Siemens has
supplied wind turbines to the country's first wind power plant in the Feni district.
 Siemens has also provided solutions for energy-efficient lighting and building automation
to promote sustainable practices in the country.

Overall, Siemens has implemented various strategies in Bangladesh to mitigate the challenges it
faces and to contribute to the country's development. These strategies include collaborating with
local partners, investing in infrastructure, building local talent, implementing anti-corruption
measures, and embracing sustainability.

Overall competitiveness of the industry – Porter’s five forces

Porter's Five Forces model is a framework used to analyze the competitive environment of an
industry. Here is an overview of the five forces and how they apply to the industry in which
Siemens operates:

1. Threat of new entrants: The threat of new entrants to the industry is low, as the industry
requires significant capital investment, technology, and expertise. Siemens has
established itself as a leading player in the industry, and new entrants would face
significant barriers to entry.

2. Bargaining power of suppliers: The bargaining power of suppliers is moderate, as there

are a limited number of suppliers of key components and raw materials. However,
Siemens has significant purchasing power and can negotiate favorable terms with its
suppliers.

3. Bargaining power of buyers: The bargaining power of buyers is high, as customers have
access to a range of alternative products and services. Customers can switch to
competitors if they are not satisfied with Siemens' products or services.
 4. Threat of substitutes: The threat of substitutes is moderate, as customers can choose from
a range of alternative products and services. However, Siemens has established itself as a
leader in its field and has a strong reputation for quality and innovation.

5. Rivalry among existing competitors: The rivalry among existing competitors is high, as
the industry is highly competitive and dominated by a few key players. Competitors such
as GE, ABB, and Honeywell compete with Siemens in various segments of the industry.
However, Siemens has a strong brand reputation, a broad portfolio of products and
services, and a global presence that gives it a competitive advantage.

Overall, the industry in which Siemens operates is highly competitive, with a few key players
dominating the market. However, Siemens has established itself as a leader in its field and has a
strong brand reputation, a broad portfolio of products and services, and a global presence that
gives it a competitive advantage.

Strategic Planning and Strategy

Strategic planning is the process of determining an organization's direction and allocating

resources to achieve objectives, whereas strategy refers to the long-term plans and actions that
organizations pursue in order to achieve those objectives. In a competitive world, effective
strategic planning and strategy creation are critical for organizational success. Siemens
Bangladesh Limited has researched and assessed product demand. Before entering the
Bangladesh market, Siemens offered and developed many tactics. Siemens, with its world-class
solutions, plays an important role in Bangladesh's quest for modern infrastructure development.

International Strategy:

Since it is a company with a value of 125.1 billion dollars, Cost Pressure is comparatively low
for the company to operate. Industry, Energy, Healthcare, Infrastructure, and Cities are the core
business segments of this company. Local responsiveness also doesn’t play a big role here and
most of their business is more like collaboration with existing businesses. Its foreign strategy in
Bangladesh is anticipated to center on utilizing its expertise in these areas to promote the
country's infrastructure development while also addressing local needs and priorities. Siemens
operates in which the company sells its goods or services outside of its home market.
International markets provide numerous new opportunities for the company to expand. As the
government of Bangladesh rapidly improves its infrastructure throughout the country, it is highly
likely that opportunities will be numerous. Bangladesh has agreed to build the country's largest
LNG-based power plant with Siemens in 2018. On Sunday, a USD 2.8 billion deal was signed to
build a 3,600-megawatt plant in the southern district of Patuakhali's Payra, which also has a
seaport.
Entry Mode: Joint Venture

A joint venture is a business agreement between two or more parties who agree to pool their
resources and expertise to work on a specific project or venture. Each party in a joint venture
usually contributes something to the project, such as capital, assets, knowledge, or expertise.
Siemens Bangladesh Ltd. has partnered with multiple companies such as Marks automation
limited, energy control and engineering ltd, Sincos automation technologies ltd, Cotmac
Bangladesh private limited for both Low Voltage Switchgears and Industrial Automation/Drive
Technology products. There are other business sectors that Siemens are involved in energy, smart
infrastructure and digital industries.