Strategic Problem: Siemens faces the multi-faceted strategic challenge of finding the perfect balance between their existing strongholds in alternative energy sources, the lure of expanding innovation, and the risk of complacence-induced obsolescence. The race for global leadership in alterative energy is on; what steps will best enable Siemens to capitalize upon their existing strengths, minimize vulnerabilities, and fortify themselves as a global leader?
Strategic Analysis: Based upon their finite nature, the time is coming where the world will be unable to depend upon fossil fuels for energy. The economic lessons we were taught when prices skyrocketed in the last decade combined with the mounting calamity over climate impact and global warming has pushed this issue to the forefront.. This imperative has driven innovations across the globe, motivating providers of energy to find renewable and sustainable alternatives to fossil fuels. Global energy leaders – including Siemens – have been hard at work to establish and implement core competencies to stay abreast of the fast-moving, dynamic nature of continual innovations from smaller constituents and competitors within the industry. Siemens has two areas where they maintain a current competitive advantage – wind technology and solar energy. Wind power has been viable since 1980, and is one of the fastest growing alternative energy sectors; it maintains promise for continued growth through the next several decades.