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Siemens

Siemens wants to provide key account management (KAM) programs to its customers to improve loyalty, understand customer needs more closely, and increase revenues and profits. The benefits of KAM include easily sharing information, convenient planning and strategies, eliminating competitors, and better understanding customers. However, the risks include slow results, reliance on IT support, and potential conflicts requiring technical knowledge. Siemens chose Eurobric as a key account because it was a large producer contributing to global output, provided 75% of Siemens' sales in one area, and had a large global production and workforce, qualifying it as a key account.

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Yash Pratap Singh
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364 views2 pages

Siemens

Siemens wants to provide key account management (KAM) programs to its customers to improve loyalty, understand customer needs more closely, and increase revenues and profits. The benefits of KAM include easily sharing information, convenient planning and strategies, eliminating competitors, and better understanding customers. However, the risks include slow results, reliance on IT support, and potential conflicts requiring technical knowledge. Siemens chose Eurobric as a key account because it was a large producer contributing to global output, provided 75% of Siemens' sales in one area, and had a large global production and workforce, qualifying it as a key account.

Uploaded by

Yash Pratap Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Q1.

) Why does Siemens wants to provide KAM programs to its customers what are the key
benefits & risks of KAM approach.?

A1.) Siemens want wants to provide key account management programs to its potential
customers to:

 To improve loyalty and customer relationship to understand the needs of its customers
more closely.
 To increase satisfaction of their customer by say 20% as mentioned in the case.
 For more revenues like increase of 15%
 Siemens wants to offer made to measure products, services portfolio and different
solutions to its customers.
 To construct a solid capital structure and to increase profits.

Benefits of the KAM approach are:

 The information can be shared very easily to its potential customers.


 By using key account management approach it was much convenient to make plans and
strategies.
 One of the key benefit can be elimination of the competitors it is difficult for other
competitors to enter in the business.
 It increased the profits and revenues of the company.
 Through KAM approach it was much easier to understand the customer need and want
so it results in gain of more market share in the market .
 It gives a better understanding of the management.

Risks of KAM approach:

 It takes a long time to grow and gives results very slowly Siemens also took 15 years
took reach at optimal result of Siemens one.
 As it is full IT enabled system so support of IT is very necessary in this a small mistake
can be too dangerous.
 Sales people and key account management need to have better understanding conflict
between can turn into a huge loss for company.
 Everyone in the company need to gain some technical knowledge about KAM for better
understanding.
Q2.)  Why does Siemens choose EUROBRIC to be a key account ? Is Eurobric a qualified key
account ?

A2.) Siemens choose EUROBRIC to be a key account as:

 Eurobric was one of the largest producer of Stanment, with almost 8% contribution
output among the whole world.
 Siemens 75% sales of bi metal technology came from EUROBRIC.
 Eurobric was a major player of stanment its production was in 60 countries across the
globe so it was a reliable client.
 It employed about 300,000 people so they have a huge men power.
 Any investment above 2 million dollar had to gain approval from a central investment
committee that helped to keep the track with the projects and keep in close with
contacts with counterparts.

Yes Eurobric is a qualified key account as:

 EUROBRIC has a strong historical performance in terms of expected sales growth,


sales, relationship with clients, market share etc.
 They have a very strong customer profile and huge customer base.
 They have a strong contacts in local markets.
 They have part time sales people from other region as well.

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