Lose Chinese Market, Lose All

　　1 .China------the second largest economy

　　Chinese State Council Information Office held press conference at 10:00 am, on January 20, ing to preliminary estimation, Chinese Gross Domestic Product (GDP) for the 2010 was 39,798.3 billion Yuan, up by 10.3 percent at comparable prices, or 1.1 percentage points higher than that in the previous year. In terms of growth by quarters, it was up 11.9 percent for the first quarter, 10.3 percent growth for the second quarter, 9.6 percent for the third quarter and 9.8 percent for the last quarter. The People's Republic of China is the world's second largest economy both in nominal and PPP terms following the United States. It is the world's fastest-growing major economy, with average growth rate of 10% for the past 30 years.

　　2. How to enter into the Chinese market

　　Leaving the Chinese market companies would not survive in the 21st century, so each country wants to enter the Chinese market. How to enter the Chinese market, we use an old Chinese proverb, “Eight immortals fly over the sea, each having their own ways.” Some companies sell their products through politicians. For example, Chinese President Hu Jintao arrived at the USA for a state visit with President Obama, then Chinese government spokesman said China will buy 200 Boeing airplanes in $19 billion deal. Some companies adopt collaboration with Chinese enterprises, such as General Electric. The White House says GE reached a deal with China Shenhua Energy Company Limited. The joint venture will use GE's cleaner power generation technologies to advance cleaner coal solutions for industrial chemicals, fuels and power generation. GE estimates the deal has the potential to generate up to $2.5 billion in U.S. exports.

　　3 How about the Automation market of China

　　In 2010, the sales revenue of China’s DCS market reached 7.0 billion RMB, decreasing by 4.1billion than 2009. Under the dual pressure of the financial crisis and Chinese domestic overcapacity, in 2011, DCS market is difficult to develop as fast as previous years. However, with the ebbing way of crisis and the increase of new projects, DCS market is estimated slowly in 2011,and it will increase by 6.5%,amounting to 7.36 billion RMB.

　　Such a great Chinese automation market, the suppliers or system integrators such as ABB, Honeywell, Invensys, Emerson want to make more orders, but there are bad aspects for them , Chinese government requires the domestication of significant equipments; after many years of development, Chinese companies are much stronger and more competitive in products, technologies and their overall strength; large projects were cut off in 2010 while many medium and small projects survived, Chinese domestic enterprises are superior in this concern. Facing the Chinese changeable market, what ABB, Honeywell, Invensys, Emerson will do for the next step, and what will our Siemens do in the future?

　　4 ABB gains an advantage over strategy

　　ABB built a new company named Winmation in 2009, Winmation means Win Automation, Winmation is ABB group’s second brand. I think the ABB’s strategy is so great that ABB will get more order forms in Chinese DCS market by helping of the Winmation.

　　The real challenge of ABB has come with its bid to successfully manage all these products and services in a rapidly changeable business environment. One of the key factors contributed to ABB’s success is its constant emphasis on management which is consistently ready to change in an ever-evolving business environment, so Winmation comes forth. Not only Winmation but also ABB, will win much more automation market from this strategy.

　　5 Cooperation------Honeywell got second step

　　Honeywell adopted other strategy-----cooperation with Chinese companies. Honeywell’s spokesman said that Honeywell would work with China's Haier Group to develop and promote low-emission, high energy-efficiency products and solutions. Honeywell estimated the total value of the U.S. export content in the five-year deal is $210 million.

　　6 What Siemens should do in the future

　　Our concern is not that ABB’s second brand, not Honeywell’s cooperation with China. Our serious concern is that if Siemens does not have a new strategy, it will lose Chinese market forever in the future. If lose Chinese market, it is Siemens’s darkness. We ask ourselves, in which way would make Siemens become brilliant, gorgeous, talented & fabulous? Acutally, Siemens should not take the methods like ABB and Honeywell.

　　Siemens strategic approach is marked by a sense of innovation that has helped it to evolve in a changeable market, putting Siemens at the forefront of the world’s hi-tech innovative industries. I think the next management policies will make Siemens more powerful.

　　Eliminate unfair profit-seeking practices and extend operations for the sake of their value to the company, not just to make the company bigger.

　　Maintain small business operations, advance technologically and develop in automation area.

　　Fully utilize the unique electronics for which the company is well –known.

　　Develop sales and production channels.

　　Select employees carefully and keep the number minimal.

　　Full exercise employees’ skills and abilities.

　　Distribute the firm’s surplus earnings to all its employees and secure a stable life for them. When given a fair return, employees will make the best effort in their job in return.

　　Use innovative methods to advertise and launch products.

　　It is time to change for Siemens, if Siemens adopts the policies, the biggest group will come up again.