Download - SIEMENS HEALTHCARE LTD
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SUMMER TRAINING REPORT
ON
“Comparative Analysis of Customer Preferences towards Imaging &
Diagnostic Equipments”
---- A Study on Delhi Region
At
SIEMENS HEALTHCARE LTD, NEW DELHI
Project Guide: Submitted By:
Mr. Aseem Julka 27-MBA-10
(Sales Manager) BATCH: (2010-2012)
Submitted in the partial fulfilment of requirement for the award of
Degree of Master of Business Administration from
THE BUSINESS SCHOOL
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DECLARATION
I, RAGHAV GANDOTRA student of THE BUSINESS SCHOOL, UNIVERSITY OF
JAMMU pursuing M.B.A course hereby declare that the project work entitled
“A Comparative Analysis of Customer Preferences for Imaging & Diagnostic
Equipments” is an original work carried out by me, availing the guidance of
my project guide. This report bears no resemblance with any other report
submitted to University of Jammu or any other University for the award of
any degree.
Place: Jammu
Date: 10-08-2011 RAGHAV GANDOTRA
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ACKNOWLEDGEMENT
“No task is a single person’s Endeavour. Various factors, situations and
people integrate to provide the background for the accomplishment of the
task. Behind this work lie the kind help, assistance and valuable advice of
many people to whom we will remain indebted.”
I extend a whole hearted thanks to my mentors Mr. Aseem Julka (Sales
Manager) & Mr. Rishabh Aggarwal (Sales Manager) for their valuable
contribution in a substantial way during all the stages of the preparation of
this report. Their guidance at every stage of the project enabled me to
successfully complete this project, which otherwise would not have been
possible without her constant encouragement and motivation.
My special thanks to Siemens Ltd. (Healthcare Division), which accepted me
in spite of my inexperience in the field, and gave me the opportunity to work
and learn with them. Words seem to be inadequate to express my sincere
thanks to Mr. Girish Sadana (Senior Manager-Sales) and Mr. Amit Varshney
(Regional Marketing Manager), who, in spite of their busy schedules, gave
me their valuable guidance, constructive criticism, untiring efforts and
immense encouragement during the entire course of study due to which my
efforts have been rewarded.
I would also like to extend my gratitude to all the employees of Siemens
Healthcare Ltd, for providing me vital information regarding the project. I
thanks for their coordination and cooperation.
RAGHAV GANDOTRA
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CONTENTS
o Certificate
o Declaration
o Acknowledgement
Chapter 1 : Company Profile
Siemens Ltd - At a Glance
Siemens Worldwide
Siemens in India
Siemens Healthcare in India
Chapter 2 : Products & Services Portfolio
Imaging & Diagnostic Products Portfolio
Siemens Environmental Portfolio
From Recycling to Refurbishing
Chapter 3 : Competitor’s Overview
GE Healthcare
Philips Healthcare
Chapter 4 : Research Methodology
Data analysis of consumer preference & interpretation
Chapter 5 : Findings & Conclusion
List of potential buyers
Limitations and Scope for Future Study
o Bibliography
o Annextures
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SIEMENS LTD. – AT A GLANCE
Siemens was founded in Berlin by Werner von Siemens in 1847. As an extraordinary
inventor, engineer and entrepreneur, Werner von Siemens made the world's first
pointer telegraph and electric dynamo, inventions that helped put the spin in the
industrial revolution. He was the man behind one of the most fascinating success
stories of all time - by turning a humble little workshop into one of the world's largest
enterprises. As Werner had envisioned, the company he started grew from strength
to strength in every field of electrical engineering. From constructing the world's first
electric railway to laying the first telegraph line linking Britain and India, Siemens was
responsible for building much of the modern world's infrastructure.
Siemens is today a technology giant in more than 190 countries, employing some
440,000 people worldwide. Siemen‟s work in the fields of energy, industry,
communications, information, transportation, healthcare, components and lighting
has become essential parts of everyday life. Founded more than 150 years ago, the
company is active in the areas of Information and Communications, Automation and
Control, Power, Transportation, Medical, and Lighting.
a) Vision Statement
To remain market leader and technology pace setter in the engineering and
electronics industry by utilizing the high-tech engineering expertise of the Siemens
group worldwide to maintain our strong and prominent local presence.
b) Mission Statement
To realize our vision by-
Providing quality to our customer at competitive prices, to their complete
satisfaction.
Generating earning sufficient to ensure a secure future for the company and
to protect and increase our shareholders investments.
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To enhance creativity and job satisfaction of our employees by providing
opportunities for personal development, limited only by their own ability and
drive.
To contribute to the national economy, whilst realizing a strong sense of
responsibility to society and the environment.
To enhance the investment of our customer through Human Excellence, our
Technology, our Processes, our High Standards of Quality and Financial
strength.
c) Siemens Business Philosophy
“To set the benchmark by being the „Best in Class‟ in their fields and
to create value for their customers, wealth for their shareholders, and a future for
their employees while giving back graciously to society, a piece of their success.”
d) Principles of Siemens
Customers
People
Innovation
Responsibility
Value
We strengthen our CUSTOMERS - to keep them competitive
Our success depends on the success of our customers. We provide our customers
with our comprehensive experience and solutions so they can achieve their
objectives fast and effectively.
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We empower our PEOPLE - to achieve world-class performance
Our employees are the key to our success. We work together as a global network of
knowledge and learning. Our corporate culture is defined by diversity, by open
dialogue and mutual respect, and by clear goals and decisive leadership.
We push INNOVATION - to shape the future
Innovation is our lifeblood, around the globe and around the clock. We turn our
people's imagination and best practices into successful technologies and products.
Creativity and experience keep us at the cutting edge.
We embrace corporate RESPONSIBILITY - to advance society
Our ideas, technologies and activities help create a better world. We are committed
to universal values, good corporate citizenship and a healthy environment. Integrity
guides our conduct toward our employees, business partners and shareholders.
We enhance company VALUE - to open up new opportunities
We generate profitable growth to ensure sustainable success. We leverage our
balanced business portfolio, our business excellence and synergies across all
segments and regions. This makes us a premium investment for our shareholders.
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SIEMENS WORLDWIDE
Initially there were three units in different areas of operation: SRW-Siemens
Reiniger werke (Medical Engineering), SSW-Siemens Schukert Werke (energy)
and SH_Siemens Halske (Communication). They finally merged into Siemens AG
(Aktiengesellschaft) in the 1970„s.
To continue with its pioneering research and to stay ahead in the field of electrical
and electronic technology, Siemens put strong emphasis on research and
development with over 4500 employees engaged in this key activity of approximately
8% of the turnover. On an average Siemens spends DM 35 million a day on R&D
and has its R&D centers in Europe and USA apart from Germany.
Worldwide sectors and divisions of Siemens
Siemens is categorized in 3 main divisions namely:
1. Industry
2. Energy
3. Healthcare
e) Industry Sector – Overview
The industry sector is one of the world‟s leading suppliers of manufacturing,
transportation, building and lighting systems. By continuously optimizing productivity,
efficiency and flexibility, the division is increasing the economic and environmental
competitiveness of its customers in the industry and infrastructure segments. Some
major contributions include customized motors, industrial water treatment and
VELARO high speed trains.
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( in million Euros ) Q2 2011 Q2 2010
Revenue 7,812 9%
New orders 8,371 22%
Profit 824 45%
Profit margin 10.50% Trgt: 10-15%
% YoY SEQ Growth
(Performance in 2nd Quarter)
22%
34%
24%
20%
REVENUE BY REGION ( FY 2010 )
ASIA , AUSTRALIA
EUROPE,AFRICA,CISMIDDLE EAST(EXCLUDINGGERMANY)
AMERICAS
GERMANY
Key figures of the year 2010 (in million of Euro)
Total revenue- 34,869
New orders- 34,908
Profit -3,478
Employees- 204,000
The Industry sector of Siemens is further divided in to various sub-sectors or
divisions such as:
Drive technologies
Industry automation
Building technologies
Mobility
Industry solutions
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Industry Sector- Drive Technology Division
Division profile
Productivity, energy efficiency and reliability are the key requirements of the
Division‟s customers. And as the world‟s no. 1 supplier of products, end to end
systems, applications and services for complete power trains and for all the industry
segments, Drive Technologies has the solutions they need.
In million of euros Q2 2011 Q2 2010
New orders 2,262 25%
Revenue 1,978 22%
Profit 259 47%
(Performance in 2nd Quarter)
Industry Sector – Industry Automation Division
Division profile
Fast, flexible, efficient: industry automation offers its customers a unique
combination of automation technologies and industrial software spanning entire
value chain- from product design to service. The portfolio enables industry
customers to slash time-to- market by up to 50 percent.
( in million of Euros) Q2 2011 Q2 2010
New orders 1,862 23%
Revenue 1,746 23%
Profit 306 60%
(Performance in 2nd Quarter)
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Industry sector – Mobility Division
Division profile
By networking transportation systems more effectively, the Division‟s integrated
solutions for intermodal transport, traffic management, postal automation and airport
logistics are making the movement of people and goods more efficient and eco-
friendly.
In million of euros Q2 2011 Q2 2010
New orders 1,448 27%
Revenue 1,978 -4%
Profit 64 n/a
(Performance in 2nd Quarter)
Industry sector – Industry Solution Division
Division profile
Industry solutions is a leading providers of solutions and services for industrial plants
and infrastructure systems, helping customers increase their competitiveness across
entire lifecycle and offering attractive solutions in the areas of energy efficiency,
pollution control and water management.
New orders/ innovation in Q2
The Division received another order to equip an AIDA cruise ship with diesel- electric
propulsion systems and power generation and distribution systems. The order, with a
value in the lower double- digit million euro range, also includes automation
equipment for controlling and monitoring all on-board systems.
In million of euros Q2 2011 Q2 2010
New orders 1,572 10%
Revenue 1,978 -4%
Profit 64 n/a
(Performance in 2nd Quarter)
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f) Energy Sector - Overview
The energy sector is one of the world‟s leading suppliers in the field of energy
technology. The sector enables customers to generate, transmit and distribute power
at the highest levels of efficiency. It helps them also to produce, convert and
transport the primary fuels oil and gas. It includes the set up of industrial gas
turbines, wind turbines and HVDC transmission.
( in million of Euros) Q2 2011 Q2 2010
New orders 6,707 8%
Revenue 9,205 51%
Profit 2,421 198%
Profit margin 36.10% Trgt: 10-15%
(Performance in 2nd Quarter)
15%
51%
26%
8%
REVENUE BY REGION ( FY 2010)
ASIA , AUSTRALIA
EURORE,CIS, AFRICA,MIDDLE EAST(EXCLUDINGGERMANY )
AMERICA
Key figures of the year 2010 (in million of Euros)
Total revenue -25520
New orders- 30122
Profit -3562
Employees- 88000
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The Energy sector of Siemens is further divided in to various sub-sectors or
divisions such as:
Fossil power generation
Renewable energy
Oil and gas
Energy services
Power transmission
Power distribution
Energy Sector – Fossil Power Generation Division
Division profile
The division generates more electricity from less fuel with innovative technologies.
Fossil power generation boosts the efficiency of coal and gas – based electricity
production and provides technologies for low-carbon fossil power generation.
New orders /Innovation in 2nd Quarter of 2011
Siemens has received an order from Saudi Arabia for the supply of components for a
combined cycle power plant with an associated desalination facility. The order is
worth more than USD 1 billion , making it one of the largest posted by Siemens
Energy in the Middle East. Commercial operation of the facility is scheduled to begin
in early 2014.
In million of euros Q2 2011 Q2 2010
New orders 3,206 42%
Revenue 2,538 4%
Profit 2,049 >200%
(Performance in 2nd Quarter)
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Energy Sector – Renewable Energy Division
Division profile
In the dynamic renewable market, the renewable energy division is steadily
expanding its position – with innovative wind turbines that rank among the most
reliable in the world , with large – scale photovoltaic projects and with leading- edge
technologies for solar- thermal power plants.
New orders /Innovation in 2nd Quarter of 2011
The division secured another order for an offshore wind power plant in Germany.
The company will supply up to 89 wind turbines for the Borkum Riffgrund 1 project in
the Northsea off the Germany coast. With a total capacity of 320 megawatt, the wind
power will supply approximately 330,000 German households with clean electricity.
in million of Euros Q2 201 Q2 2010
New orders 1,967 >200%
Revenue 931 8%
Profit 48 -53%
(Performance in 2nd Quarter)
Energy Sector –Oil and Gas Division
Division profile
The division offers customers in the oil and gas, process and energy supply
industries a wide portfolio of products and solutions for the eco-friendly and
resource- saving utilization of energy in areas such as the production and processing
of oil and gas and the energy – efficient generation of electricity.
In million euros Q2 2011 Q2 2010
New orders 1,390 18%
Revenue 1,123 15%
Profit 125 5%
(Performance in 2nd Quarter)
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Energy Sector – Power Transmission Division
Division profile
Low –loss power transmission, reliable switchgear and transformers , and advanced
power transmission systems. The division leverages its innovative strength to enable
customers to transmit power- for example, green electricity from renewable energy
from renewable energy sources like off shore like off-shore wind farms- safely and
efficiently.
In million euros Q2 2011 Q2 2010
New orders 2,040 43%
Revenue 1,557 14%
Profit 142 -5%
(Performance in 2nd Quarter)
Energy sector – Power Distribution Division
Division profile
The Division meets the prerequisites for sustainable energy management by
providing smart grid technologies that increases the efficiency of energy systems. It
offers customers innovative medium-voltage components and systems, solutions for
electrical systems and networks.
In million euros Q2 2011 Q2 2010
New orders 785 1%
Revenue 711 7%
Profit 54 -42%
(Performance in 2nd Quarter)
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g) Health Sector – Overview
The healthcare sector is one of the world‟s largest providers to the healthcare
industry. Its core competencies are on the hand, diagnostic systems and therapeutic
technologies, and on the other, knowledge processing – including information
technology and systems integration. Siemens healthcare is the first integrated
healthcare company that combines imaging systems, laboratory diagnostics,
treatment solutions and healthcare IT- rounded off by consulting and services.
In million euros Q2 2011 Q2 2010
Revenue 3,117 5%
New orders 3,119 6%
Profit 450 -4%
(Performance in 2nd Quarter)
20 %
29 % 42 %
9 %
EXTERNAL REVENUE LOCATION OF CUSTOMER
ASIA , AUSTRALIA
EUROPE, AFRICA ,MIDDLEEAST(EXCL. GERMANY)
AMERICAS
GERMANY
Key figures of the year 2010 (in million of Euros)
Total revenue -12364
New orders- 12872
Profit -748
Employees- 48500
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The healthcare sector of Siemens is further divided in to various sub-sectors or
divisions such as:
Imaging and therapy
Clinical products
Diagnostics
Health Care Sector – Imaging and Therapy Systems Division
Division profile
Today, innovative imaging systems like computer tomographs (CT scanners) and
magnetic resonance scanner ( MRI scanners) are routinely used in hospitals and
doctors‟ offices. They enable early disease detection, reliable diagnosis and effective
treatment. Innovative imaging systems allows forms of therapies which are more
gentle on patients and also open up treatment options for diseases up to now difficult
to treat. The division is also working on better interlacing imaging and therapy. The
Division‟s advanced IT solutions help make healthcare more patient oriented , open
and transparent. Workflow can be designed more efficiently, cutting cost in the
process.
New orders /Innovation in 2nd Quarter of 2011
The university of Maastricht has contracted with Siemens Healthcare to deliver and
install three powerful, high- field magnetic resonance tomographs ( MRT). This order
is one of the largest to date in the history of Siemens Healthcare in the Netherlands.
The imaging devices will be used by the Brains Unlimited research project of the
University of Maastricht. The objective of the project is to further investigate how the
human brain functions.
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Healthcare Sector – Clinical Products Division
Division profile
The products of the Clinical Products Division address the largest imaging markets –
ultrasound and x-ray. In the emerging markets such as India, Brazil, and China, the
demand for the healthcare services increases continuously. Especially in countries
as large as China, healthcare requirements differ tremendously. While healthcare
delivery in megacities meets Western standards, the population in rural areas suffers
from merely rudimentary services. Having suitable ultrasound and x-ray products for
all these different needs is the task of Clinical Products. Additionally, the Division
provides essential components for imaging devices suited to the needs of the
respective customer.
New orders /Innovation in 2nd Quarter of 2011
Siemens introduced Mobilett Mira. Its first mobile digital x-ray system with a wireless
detector. The detector sends image data via W-LAN to an integrated imaging unit
and particularly facilitates examinations of the patients that are critically ill and have
only limited mobility. Also, a new, rotating swivel arm makes operating the unit easier
for clinical staff.
HealthCare Sector- Diagnostics Division
Division profile
Committed to advancing patient care, the division supports clinicians in diagnosing
diseases, managing patient‟s conditions, and monitoring medical therapies.
Diagnostic helps improve healthcare quality and reduce treatment costs through
early detection.
New orders /Innovation in 2nd Quarter of 2011
Siemens Healthcare achieved CE mark registration approval to sell a fully-
automated Mycophenolic Acid Test (MPAT) for use on the Dimension integrated
chemistry systems. The test monitors the level of the immunosuppressant drug used
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by physicians to prevent organ transplant rejection.
In million of euros Q2 2011 Q2 2010
New orders 918 6%
Revenue 924 5%
Profit 86 -21%
(Performance in 2nd Quarter)
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SIEMENS IN INDIA
Siemens ltd is a leading electrical and electronics engineering company in India.
Established in 1922, it was incorporated as a company in 1957 and in 1962 was
converted into a public limited company with 51 % of its equity held by Siemens AG
and the remaining 49 % held by Indian shareholders. It operates in the energy,
industry, healthcare, transportation, information, communications and components
business segments. It also operates joint ventures in the fields of communication and
information technology.
In addition Siemens group in India has presence in the field of power design,
renovation and modernization of existing power plant, lighting, and household goods.
The Siemens group in India has a widespread marketing and distribution network in
addition to multiple manufacturing processes in India. It also has a well-organized
up-market value addition in engineering, software, system integration, erection,
commissioning and customer services.
Siemens long association with India begins in the year 1867 when Werner Von
Siemens personally supervised the laying of the first transcontinental telegraphic line
between Calcutta and London. Siemens has played an active role in the
technological progress experienced in the last three decades. In the 60„s the nations
expanding investments in power generation called for a range of high quality
electrical and auxiliary equipments. Siemens grew out of response to this need.
First in a small way assembling switchboards at workshop in Bombay and Calcutta.
With products as varied as Switchgears, Motors, Drives and Automation, Power
systems automation, Railway signaling systems, Medical engineering and
telecommunication equipments.
The Siemens Group in India has emerged as a leading inventor, innovator and
implementer of leading-edge technology enabled solutions operating in the core
business segments of Industry, Energy and Healthcare. The Group‟s business is
represented by various companies that span across these various segments.
Siemens brings to India state-of-the-art technology that adds value to customers
through a combination of multiple high-end technologies for complete solutions. The
Group has the competence and capability to integrate all products, systems and
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services. It caters to Industry needs across market segments by undertaking
complete projects such as Hospitals, Airports and Industrial units. In all areas of their
operation they provide their complete range of offerings. In the energy sector, their
expertise ranges from power plants to meters and in the Industry sector; they build
airports, as well as produce contractors. In transportation, they deliver complete high
speed train where as in lightning, they illuminate large stadium and also manufacture
small light bulbs. In Healthcare, they execute complete solution for hospitals, as also
provide “in the canal” hearings aids. In Communication segment they offer a
complete spectrum of products from large public networks to mobiles phones.
The Siemens Group in India comprises of 22 companies, providing direct
employment to over 17,000 persons. Currently, the group has 18 manufacturing
plants, a wide network up of Sales and Service offices across the country as well as
over 500 channel partners.
Today, Siemens, with its world-class solutions plays a key role in India‟s quest for
developing modern infrastructure.
Siemens offer a stable performance in a challenging year-
It has started 60 new SMART projects to target a market worth over €7 billion.
Siemens manufactured India‟s first single –phase 500MVA HVDC
transformer, first company to manufacture 145Kv insulated switchgear.
Siemens received first turnkey metro rail contract for signaling, electrification,
rolling stock and system integration for the new 6.1 Km metro line connecting
Gurgaon‟s Cyber City to Line 2 of the Delhi metro.
Major Segments of Siemens in India are:
o POWER GENERATION:
Towns world over are not known for their buildings and houses but because of their
infrastructure, and power is backbone for any nation„s development. Siemens have
been supplying the technological know-how, equipments and expertise to the power
industry, both public and private sectors, since 1954. it plays an important role in
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generating over 30,000 MW of power close to half of the total installed capacity in
the country today. Siemens is associated with major power projects in the country-
500MW turbojets and 200 MW Combined Cycles Power Plant. For Tata Electric
Company at Trombay, the gas based Combined Cycle Power Plant for Maharashtra
State Electricity Board (MSEB) at Uran and 655 MW Combined Cycle Power Plant
for Gujarat Torrent Energy Co-operation in Gujarat and 3 X 500MW Jayamkondam
Lignite Power corporation in Tamil Nadu.
o SWITCHGEARS:
The increased operating requirement demanded by today„s industries has led to a
considerable change in the technology for modern distribution and control gear. For
example, they must be: able to communicate with electronic systems and meet
stringent regulations for personal safety, in addition to coping with increased
switching duties and inrush currents. The Siemens range of distribution and control
equipment has not only been continually upgraded and recognized fulfill these
requirements of the 21st century but it is manufactured and tested to such high
standards that it requires very little maintenance, thus providing a long and reliable
operation.
o MOTORS DRIVES AND UPS SYSTEMS:
MOTORS: Siemens motors are high quality machines, which are designed to
combine to very vital requirements of modern industry-optimum efficiency and high
reliability. They have economical energy consumption and are resilient enough to
withstand wide voltage and energy fluctuations. The user friendly ranges of motors
are available in several ratings of horsepower and speed and in different
constructions that enable the right power to be selected, both technically and
economically. Customs built equipments have always been a tradition with Siemens.
Sugar centrifuge motors for the cane crushing process, motors for AC variable speed
drives for the machine industry, material handling, steel and mining industry are
some of the special purpose motors.
DRIVES: Variable speed drives are well established in all the sectors of the industry.
Siemens offers the complete range of AC/DC drives for a variety of industrial
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applications. Siemens drives guarantee stable operation in the manufacturing
process, holding the process parameters within extremely tight limits. They ensure
optimum product quality and maximum production. These drives are energy
conserving, adaptable to all voltage levels used worldwide, and can be simply
integrated into automation environment via the communication bus systems.
UPS: to supply critical loads with power that is available even during shutdowns,
Siemens had introduced microprocessor based transistorized UPS (uninterrupted
power supply) systems that are highly reliable and service friendly. The range
extends from 0.5 KVA to 500 KVA.
o TRANSPORTATION SYSTEMS:
Efficient transportation is an essential part of supportive infrastructure. Siemens
continues to maintain their leading position in the safety systems for the railways.
Siemens has provided electric railway signaling equipment that has increased speed
and safety of travel. In the Centralized Route Relay Interlocking System, the operator
sets a safe train route, visually indicated on a control panel, which eliminates all
conflicting moves. This has resulted in increased utilization of existing networks
whether these systems have been introduced. Siemens Automatic Warning Systems
(AWS) already in operation on the central end western railways ensures safety
through immediate halting of the train that crosses a red signal. In keeping with the
modernization program of the Indian railways, Siemens has already diversified their
activities.
o INFORMATION AND COMMUNICATION:
Telecommunication has become intimately inter-women into modern society and
with the increasing number of Internet telephone service providers and rapid rise of
call centers all the more importance is attached to it.
Siemens is a global and leading provider of information and communication solutions
for the Enterprise and Carrier markets. This includes a complete of convergent
solutions combining voice, data, video and mobility. With the liberalization of policies
by the government, the telecommunication scenario has undergone a sea of change
the areas that were inaccessible became accessible and Siemens is now
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acknowledged key player in Indian Telecom Infrastructure development. It has also
set up subsidiary/associate companies, namely:
Siemens Public Communication Networks Limited (SPCNL).
Information and Communication Mobile Devices (ICM MP).
Siemens Business Communication Systems Limited (SBCSL).
(Offices of Siemens in India)
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(Siemens India Ltd. Organization Hierarchy)
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SIEMENS HEALTHCARE IN INDIA
Siemens Healthcare (formerly Siemens Medical Solutions, internally within Siemens
known as "Med") is a supplier to the healthcare industry, and is headquartered in
Erlangen, Germany. The name Siemens Medical Solutions was adopted in 2001.
Medical engineering is constantly enhancing the effectiveness of the diagnostic and
therapeutic modalities now available to the medical profession. The rapid advances
in electronics have resulted in phenomenal benefits accruing to modern medicine.
Non-invasive, imaging, faster and accurate diagnosis and paper free documentation
of patient data are just a few of the benefits. Siemens has supplied, installed and
continues to maintain wide range of diagnostic equipment in the most of the leading
hospitals and medical centers in India. Other installations in the intensive care units
(ICU„s) include patient monitoring systems, Servo-ventilator and Defibrillators.
Products – mix width of healthcare sector of Siemens India is very vast. It is divided
in to different categories:
Diagnostic imaging and therapy
Laboratory diagnostic
Hearing instruments
Infrastructure solutions
IT solutions and services
Diagnostic imaging and therapy
It provides the entire spectrum of imaging systems for diagnosis and therapy, from
the electro-medical arena and audiology to IT solutions that optimize workflows in
hospital and private, resulting in higher levels of efficiency.
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Products, Solution and Services of Diagnostic Imaging and Therapy are-
Laboratory diagnostics-
In in- vitro diagnostics, Siemens offer a broad portfolio of performance – driven
solutions that provide more effective ways to assist in the diagnosis, monitoring and
management of disease. Their products and services offer the right balance of
science, technology and practically across the healthcare continuum to provide the
information to deliver better, more personalized healthcare to patients.
Products, Solutions and Services of Laboratory Diagnostic are
Core laboratory – Automation
Siemens healthcare diagnostics open systems features automation solutions and
preanalytical components that have the flexibility to adapt to virtually any laboratory
condition, including size, shape and available space.
Core laboratory- Hematology:
Siemens hematology systems provide more accurate. First- pass results for
laboratory hematology testing.
Core laboratory -Hemostasis
Siemens powers up your lab with a comprehensive portfolio of hemostasis products.
The wide range of analyzers and assays is perfectly aligned to improve operational
efficiency in the laboratory.
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Molecular diagnostics:
Siemens molecular testing systems enable early detection of major infectious
efficacy, and selection of targeted, individualized options.
Hearing aids –
Hearing instruments- Siemens provide a wide range of discreet , attractive and
powerful hearing systems that are tailored to the needs of modern , active lifestyles
and open up an entirely new world of hearing.
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IMAGING & DIAGNOSTIC PRODUCTS PORTFOLIO
Siemens Ltd. manufactures a variety of products and also provides services to their
clients/customers in healthcare. There are basically two vertical of products.
Primary care
Secondary care
Following are the products that come under Primary care product:
X-Rays
Magnetic Resonance Imaging
Computed Tomography
Following are the products that come under Secondary care product:
Cath Labs
Patient Monitors
Ultrasound
Primary care products (Under this division the cost of products are above Rs 2Cr.)
Secondary care products (Under this division the cost of products are below Rs 2Cr.)
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Ultrasound Machine: Ultrasound basically refers to the procedure that uses high
frequency sound waves to view internal organs and produce images of the human
body. The human ear cannot hear the sound waves used in an ultrasound. Although
this limit varies from person to person, it is approximately 20 hertz to 20 kilohertz in a
healthy human body. These are as follows:
Acuson 300 Acuson Antares
Acuson 300 Premium Edition Acuson S 2000
Acuson X- 150
Acuson X300 Premium Edition Acuson Antares
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Acuson 300 Acuson X-150
Acuson S2000
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X-Ray machines: They are a form of electromagnetic radiation, just like visible light.
In a healthcare, a machine sends individual x-ray particles, called photons. These
particles pass through the body. A computer or special film is used to record the
images that are created. X-ray machines consist of two parts : X-ray machine and
high frequency generator.
X-ray machines are categorized on the basis of their mobility as :
Mobile x-ray machines: are the one which are easily movable from one place
to another. Mobile X-rays manufactured by Siemens are of 2 types. They are
namely Multimobil 2.5 and Multimobil 10. The term 2.5 and 10 signifies the
out power of the machine which is 2.5kw and 10kw respectively.
Static x-ray machines: are the one which cannot move from one place to
another. They are conventional x-rays.
The factory in Goa is one of the largest manufacturing bases for X-ray products.
Within a short period of time, the factory was awarded the prestigious seal of quality
ISO 9001- 1994 certification, by the underwriter Laboratories ( UL) USA.
Siemens offer 2 types of mobile x-rays:
Multimobil-2.5 Multimobil-10
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Conventional x ray machines offered by Siemens are of 2 types:
Pleophos D – 600 mA Heliophos D – 300 mA
High frequency generators offered by Siemens are of 2 types:
Multiphos 15 Multiphos 450
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MRI (Magnetic Resonance Imaging): MRI is a procedure used to scan patients and
determine the severity of certain injuries. An MRI machine uses a magnetic field and
radio waves to create detailed images of the body.
There are various varieties of MRI equipments manufactured by Siemens. Some of
them are MAGNETOM Concerto, MAGNETOM Avanto etc. Siemens provides
technologically advanced MRI equipments.
Magnetom Concerto
Magnetom Avanto 1.5T
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CT (Computed Tomography): Computed Tomography is based on the x-ray
principal: as x-rays pass through the body they are absorbed or attenuated
(weakened) at differing levels creating a matrix or profile of x-ray beams of different
strength. This x-ray profile is registered on film, thus creating an image. In the case
of CT, the film is replaced by a banana shaped detector which measures the x-ray
profile. Siemens provides technologically advanced CT equipments.
Various kinds of computed tomography manufactured by Siemens are:
SOMATOM Spirit
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SOMATOM Emotion
SOMATOM Sensation
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SIEMENS ENVIRONMENTAL PORTFOLIO
Success stories at Siemens Healthcare:
Worldwide, Siemens Healthcare employees support the Sector in acting in an
environmentally friendly and sustainable manner.
Some examples of their efforts are :
Green+ Hospitals:
The Siemens program Green+ Hospitals supports decision makers in healthcare in
achieving both their economic and ecological goals – with a broad portfolio of
products, solutions, and services for more sustainability in healthcare. Green+
Hospitals is not only about environmental protection, reduction of emissions and
energy savings: The plus stands for two further factors of success: efficiency and
quality. For example, due to the implementation of new compensation systems,
hospitals are managing the challenge to operate in a cost-efficient manner and to
offer highest quality in medical care with the best possible comfort for the patients
.Within a Green+ Hospitals project, at first ,the individual room for improvement of
the hospitals regarding environment, efficiency, and quality is being defined. Then,
the right solutions for the customers are chosen from the broad portfolio of Siemens.
Amongst others, this comprises solutions for building infrastructure and energy,
information and communication technology, medical technology and workflow as well
as services.
Involved employees: “GREEN Teams”
Siemens GREEN is short for “Grass Roots Eco-friendly Employee Network”. Several
environmentally conscious teams at Healthcare in the USA are participating in this
initiative. Their goal is to increase environmentally friendly activities at their places of
work. One of these “Green Teams“ is the environmental team of Siemens Hearing
Instruments (SHI) in Piscataway, New Jersey. The team is involved in retaining
natural resources, in not creating waste, and in reducing environmental hazards.
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Health Care Products in Siemens Environmental Portfolio:
1. MAGNETOM ESSENZA
Environmental benefits:
Reduction of energy consumption up to 50 percent
Reduction of installation requirements up to 25 percent
Reduction of product mass up to 20 percent
Zero Helium Boil-Off Technology: No helium consumption during normal
usage
Customer benefits
The most affordable2, all-new 1.5T MRI
Saves siting, electricity and construction costs
Low installation costs
Low connection values for energy and cooling.
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2. MAGNETOM AVANTO
Environmental benefits:
Zero Helium Boil-Off Technology: No helium consumption during normal
usage
Audio Comfort: Noise development reduced by up to 30 decibel
Material is up to 93 percent recyclable
All constituent materials are documented for high-quality use.
Customer benefits
Improved image quality and diagnosis
Substantially lower operating costs
Patient comfort increased considerably through reduction of noise
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3. SOMATOM Definition
Environmental benefits
Uses up to 30 percent less energy thanthe previous model
Reduced lead content by more than 80 percent from the previous model (from
110 kg to 19 kg)
97 percent recyclable
Customer benefits
Sharp and detailed images
Can distinguish between different tissue types in a single scan
Lower radiation doses
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FROM RECYCLING TO REFURBISHING
If a customer do not need a system anymore, it contains valuable components and
materials, that help to preserve natural resources. In order to return as much as
possible old products to economic cycle, Siemens have developed a four-stage
product take-back concept.
The Refurbished System constitutes only one part of the entire product take-back
process at Siemens Healthcare Sector. Because this consist of four sub-processes
(Refurbished Systems, Component Reuse, Extraction of spare parts as well as
Further Use/Recycling).
Siemens takes care of the disposal of your old medical devices
If desired it contains also disassembly at the site and complete evacuation. At the
same time it can be assured that old devices will be used and recycled in an
environmentally-friendly manner. Siemens Healthcare Sector has established a
network of de-manufacturing and recycling facilities in the countries where they
operate. Following nature's principle of recycling, Siemens takes back used medical
devices and refurbishes them with the same quality standards as expected in new
equipment using state-of-the-art technologies. The maintenance process of
Refurbished Systems enables the reuse of average 90 % of materials in refurbished
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devices. Bearing the "Proven Excellence" quality seal, these systems ensure the
customers comparable quality like a new system at up to 30 % lower costs of
purchase. The business unit contributes sustainable to environmental protection by
two decisive advantages. On the one hand the process extends life-cycle of the
systems and enables a longer use, on the other hand it contributes efficiently to
preserve valuable resources.
Environmental Protection, Occupational Health and Safety (EHS)
Demographic changes and concomitant rising cost pressures in the healthcare
industry require extensive diversified solutions that increase the quality of care and
simultaneously reduce costs. Siemens accepts this challenge as one of the industry
leaders of innovation and one of the largest manufacturers of healthcare equipment.
The company‟s extensive portfolio covers all areas of healthcare: from imaging
systems for diagnosis and therapy, lab diagnostics and audiology, to modern
information technology, as well as service, maintenance and last but not least
consultation in the areas of process optimization or hospital planning. And Siemens
Healthcare is continuously developing further: Through acquisitions, the company‟s
leading position in clinical information technology, especially in the field of hospital
information systems,was improved even further. For the first time, an integrated
diagnostic provider came to the fore in the healthcare industry that combines
imaging diagnostics, lab diagnostics, information technology as well as consultation
and service under one roof.Currently, close to 48,000 employees of Siemens
Healthcare worldwide work in more than 130 countries. In fiscal year 2009, the
company reached sales of 11.9 billion euros as well as an incoming order volume of
11.9 billion euros. The group result amounted to 1.4 billion euros.
The Environmental Protection, Occupational Health and Safety (EHS) department
within Siemens has been in existence since 1995. The main tasks of the department
tare to advice and support to worldwide compliance with regulations, to reduce
negative EHS aspects – these include, for example, the handling of hazardous
materials –and provide a healthy and safe workplace. In addition, EHS is responsible
for establishing improvement processes – for example, environmentally friendly
methods for production or production design. At each site, the person responsible for
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EHS takes care that EHS topics are implemented. The large number of diploma
thesis or dissertations written within EHS reflects the importance of the subject
matter. The Healthcare Sector welcomes new ideas and supports scientific research
in the field of EHS.
At Siemens Healthcare, more than 100 employees worldwide work for EHS. They all
contribute that EHS policy is applied.
EHS-Policy
Commitments:
• Continual improvement of our EHS performance to protect the environment and
provide a safe working environment
• Control and reduction of EHS hazards and business risks
• Create products and solutions to improve EHS aspects
• Conserve natural resources and prevent pollution
• Compliance to applicable EHS regulations to maintain market access
Environmental protection
Environmental protection includes such topics as emission control (emission of
material and noise pollution), soil and water conservation (e.g. when handling water-
polluting substances), and waste disposal (disposal of production waste and old
products). Increasingly, the emphasis of environmental protection has moved from
manufacturing to the overall view of the environmental effects of a product across all
phases of its product life. The environmental effects of medical products are
especially relevant during their usage. The use phase constitutes up to 75 percent of
the energy expenditure of a medical product (e.g., computed tomography). With its
integrated product policy, Siemens Healthcare aims to noticeably reduce
environmental aspects. In addition, the sector participates in the energy efficiency
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program which checks the energy consumption at worldwide factory sites and
reduces it whenever feasible.
Occupational health and safety
Classic occupational health and safety addresses primarily the prevention of
accidents and the protection of employees from work-related disease. Modern
occupational health and safety goes beyond these efforts and requires additional
preventive and integral solutions in the sense of an all en-compassing operational
health protection. For this reason, the Healthcare Sector developed a structure that
allows for timely detection of hazards and the reduction of work-related risks. Within
the Healthcare Sector, important tasks of occupational health and safety are the
creation and implementation of a worldwide occupational health and safety
organization within the framework of the EHS management system. The resulting
organizational measures for the protection of employees, such as qualification,
training in occupational medical and safety-related care, are also of significant
importance. In addition, workplaces worldwide (including auxiliary tools and
operating materials) are tested for their hazards and risks, actions are implemented
to reduce these elements, and their implementation and observance are monitored.
This allows for the early detection and minimization of possible work-related risks.
Because healthy and productive employees are the capital of a company, Siemens
Healthcare values health protection: Occupational preventive services and
emergency care for the employees are coordinated within the framework of health
management. Medical employees work closely with executives and experts for
occupational safety in evaluating hazards.
Radiation protection
Protecting employees from radiation plays an important role at Siemens. Radiation
protection applies, on the one hand, to ionizing radiation caused by X-ray tube
assemblies or radioactive substances or, at the other hand, to non-ionizing radiation
as it is present, e.g., when operating magnetic resonance imaging systems, lasers or
UV radiators.
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Past performances of Siemens healthcare:
The healthcare sector introduced several first-of-its kind products in the country. It
launched SOMATOM Definition Flash CT scanner, which is the fastest CT scanner
in the world with a low radiation dose. The world‟s first molecular CT scanner called
Biograph mCT was installed for the first time in India. The sector also introduced
country‟s first robotic cathlab, Artis zeego.
One of the most outstanding technologies introduced by Siemens was Liver
Elastography using ACUSON S2000 ultrasound system. With this ultrasound
system, for the first time in India it is now possible to non-invasively diagnose liver
disorders. Another ultrasound system launched was ACUSON SC2000 which
provides exclusive cardiac and vascular diagnosis. With this ultrasound system,
Siemens also introduced a technology called ECHO in a heartbeat that allows
volume scanning of a heart in one second.
The sector received the single largest bulk order from one of the government
entities. A significant export order was won from China for 20 units of multimobil 5C
C- arm systems and 40 units of multimobil 2.5 X-rays. The healthcare market in 2010
registered an overall growth of more than 10% over the year 2009.
Siemens Healthcare leveraged these growth opportunities and became the market
leader in India. The Sector maintained its leadership position in the business
segments of CT scanners, MRI, PET/CT scanners, Cath Labs and X-rays. With a
healthy Order intake and improved profitability, the overall performance of the sector
was excellent. For FY 2009-10, the Order Value increased by 28% to Rs 7.8 billion,
Sales jumped by 39% to Rs 7.5 billion, while Profits from Operations rose by 26% to
Rs 519 million.
The healthcare sector launched 2 MRI scanners called MAGNETOM Skyra 3 Tesla
system and MAGNETOM Aera 1.5 Tesla system , which provide a combination of
high –end technologies like Total Imaging Matrix( Tim ), 4G and Day Optimization
Technology ( dot) for the first time in Asia. The ultimate benefit of these technologies
is optimum patient comfort and excellent image quality, thus providing accurate
diagnosis. Exports from Goa continued to grow, where orders worth Rs400 million
were exported to 16 countries worldwide.
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COMPETITOR’S OVERVIEW
GE Healthcare
GE Healthcare is a division of GE Technology Infrastructure, which is itself a division
of General Electric (GE).[1] It employs more than 46,000 people worldwide and is
headquartered in Little Chalfont, Buckinghamshire, United Kingdom. GE Healthcare
is the first GE business segment to be headquartered outside the United States. In
2004 the formerly named GE Medical Systems was renamed GE Healthcare.
Type Subsidiary
Industry Medical
Founded 2004
Headquarter Little Chalfont, United Kingdom
Area served Worldwide
Key people John Dineen (CEO)
Products Medical equipment
Parent General Electric
GE HEALTH CARE
GE Healthcare has a range of products and services that include medical imaging
and information technologies, medical diagnostics, patient monitoring systems, drug
discovery, and biopharmaceutical manufacturing technologies.
GE Healthcare currently has 7 primary business units:
1. GE Healthcare Global Diagnostic Imaging, headquartered in Waukesha
(near Milwaukee), Wisconsin, USA. The Diagnostic Imaging business
includes X-ray, digital mammography, computed tomography (CT), magnetic
resonance (MR) and molecular imaging technologies.
2. GE Healthcare Clinical Systems, headquartered in Wauwatosa (suburb of
Milwaukee), Wisconsin, USA. This business provides a range of healthcare
technologies and services for clinicians and healthcare administrators. It
includes ultrasound, ECG, bone densitometry, patient monitoring, incubators
and infant warmers, respiratory care and anesthesia management.
3. GE Healthcare IT, headquartered in Barrington, Illinois, USA healthcare IT
provides clinical & financial information technology solutions such as
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departmental IT products, RIS/PACS (Radiology Information Systems/Picture
Archiving and Communication Systems) and CVIS (Cardiovascular
Information Systems).
4. GE Healthcare Medical Diagnostics, headquartered in Little Chalfont,
Buckinghamshire, UK. Medical Diagnostics researches, manufactures and
markets imaging agents used during medical scanning procedures to highlight
organs, tissue and functions inside the human body.
5. GE Healthcare Life Sciences, headquartered in Uppsala, Sweden. This
division produces technology for drug discovery, biopharmaceutical
manufacturing and cellular technologies. It also makes systems and
equipment for the purification of biopharmaceuticals.
6. GE Healthcare Surgery, headquartered in Salt Lake City, Utah, USA. This
provides tools and technologies for cardiac, surgical and interventional care,
from cardiac catheterization labs, diagnostic monitoring systems, 3D
visualization instrumentation.
7. GE Healthcare GoldSeal, headquartered in Wisconsin, USA. They are
providers of second-hand refurbished GE X-ray systems.
While it has offices around the globe, GE Healthcare has major regional operations
in Buc (suburb of Paris), France; Helsinki, Finland; Budaors (suburb of Budapest),
Hungary; Yizhuang (suburb of Beijing), China; Hino & Tokyo, Japan and Bangalore,
India. The product line offer by GE is also as vast as that of Siemens. It includes
various divisions like:
Diagnostic imaging- this include computed tomography , magnetic resonance
imaging, mammography, ultrasound.
Interventional & surgery- this include interventional X-ray, surgery mobile C- arms.
Healthcare IT-this include Healthcare IT, Ultrasound IT, Advantage Workstation.
Clinical systems- this include Anesthesia delivery, Diagnostic ECG, Maternal infant
care.
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Philips Healthcare
Philips is a multinational Dutch electronics company with its headquarters in
Amsterdam, Netherlands. It was founded in 1891 in Eindhoven (Netherland). It is
basically an electronic industry. Products offer by Philips are distributed in various
segments like- Philips consumer electronics, Philips domestic appliances, Philips
lighting, Philips healthcare, medical technology .It is employing 119,000 people in
more than 60 countries. Philips is one of the largest electronics company in the
world.
Product line offered by Philips is as vast as GE and SIEMENS. It is as follows:
Interventional X-ray
Philips cardiovascular X-ray systems deliver the flexibility and the workflow control.
Designed for interventional cardiac, vascular and neuro procedures, angiography
systems assist in providing excellent clinical care – with high image clarity and low
X-ray dose. These x-ray equipments can be used during various types of surgeries
like Interventional Vascular and Cardiac Surgeries, Electrophysiology, Interventional
Cardiology and Radiology.
Ultrasound
The new iU22 xMATRIX and iE33 xMATRIX ultrasound systems by Philips
healthcare promises to deliver outstanding image quality, and a single transducer
solution with 2D and 3D. The x-MATRIX imaging systems promises to change the
way one view ultrasound as a clinical tool. The ultrasound equipments offered by the
Philips healthcare can be used in cardiology, general imaging, regional anesthesia,
etc.
Operation Theater Lights
The Phililux range of Operation Theatre Lights use halogen lamps with proper filters
to give "cold" bluish white light, almost similar to natural light which is ideal for
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surgeries of all types. The Lights incorporate international safety standards like IEC
60601-2-41, S Mark. ISO 9000 quality standards are followed for design /
manufacturing / marketing.
The various kinds of lights offered by Philips are examination light, mobile lights,
ceiling lights single dome and ceiling lights dual dome.
Besides, these Philips healthcare also offers MRI equipments namely Achieva 3.0
TX , Ingenia 3.0T, Achieva 3.0T X-series and CT scanners as Brilliance iCT and iCT-
SP, MX 4000 Dual, MX 6000 Dual.
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RESEARCH METHODOLOGY
The research process methodology consists of six steps and these steps are as
follows:
1. Problem definition.
2. Development of an approach to the problem.
3. Research design formulation.
4. Field work or data collection.
5. Data preparation and analysis.
6. Report preparation and presentation.
Problem Definition
The first step in any marketing research is to define the problem. In defining the
problem, the researcher should take into account the purpose of study, the relevant
background information and the information needed.
Research Objectives
To assess the market coverage of Siemens & its competitors in Delhi‟s
Imaging & Diagnostic industry.
To analyse customer preference towards using of X-ray, CT-scan, Ultrasound
& MRI Scan equipments.
To find the potential customers for upgradation of equipments and the new
purchases.
Research Design
A research design is a framework for conducting the marketing research project. It
details the procedure necessary for obtaining the required information, and its
purpose is to design a study that will test the hypothesis of interest, determine
possible answers to research questions and provide the information needed for
decision making. Formulating the research design involves the following steps:-
(a.) Type of Research Design :- Empirical Research /Quantitative Research
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Quantitative Research: It is based on the measurement of quantity or amount. It is
applicable to phenomena that can be expressed in terms of quantity.
Empirical Research: It is data based research coming with conclusions, which are
capable of being verified by the observation and experiment.
(b.) Method of Collecting Quantitative Data :-
The research instrument which I am using in my research paper is a questionnaire. It
consists of 7 close ended questions. This questionnaire translates the information
needed into a set of specific questions that the respondents have to answer.
(c.) Scaling Technique :-
The scaling method which had been used in the questionnaire is
o Rank Order Scale
o Ordinal Scale
(d.) Sampling Technique :-
o Target Population : Hospitals & Diagnostic Centres
o Sampling Frame : Delhi region
o Sampling Size : 50
Method of data collection
o Primary data :-
These data were collected by personal interview with the existing customers.
o Secondary data :-
These data were collected from Siemens Annual Report 2009-2010, Internet & Siemens
Intranet, various magazines and journals.
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Data Analysis
What type of centre do you work at?
Analysis and interpretation:
Major players in the market in Delhi are private hospitals (42%) and diagnostic
centres (28%). A small portion is covered by government hospitals (8%) and nursing
homes (16%). There are very few charitable hospitals in Delhi as compare to the
private hospitals and diagnostic centres.
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Does your hospital have a formal policy or procedure for equipment
procurement?
Analysis and interpretation:
56% of the hospitals and other centres have formal policy for the procurement of the
equipments and of them mostly are private hospitals and government hospitals.
Small nursing homes and diagnostic centres which cover around 40% of the centres
don‟t have any formal policy for the equipment procurement.
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What type of medical imaging equipments do you have in your hospital/
diagnostic centre ?
CT [ ] MRI [ ] Ultrasound [ ] X-Ray [ ] All [ ]
Analysis and interpretation:
Of the total data collected, there were 23 CT scanners, 11 MRI machines, 46
Ultrasound equipments and 44 X-ray machines. Thus total machines covered are
124. Since MRI and CT scanner are very expensive, therefore it is difficult to find
these machines in every hospital. MRI and CT scanners were not found in small
nursing homes, charitable hospitals and small diagnostic centres. The highest
number of machines covered in ultrasound segment (46) and X-ray segment (44) as
these machines are not as expensive as MRI and CT and moreover many local &
other players (like Listem, Allenger, Aloka, Medison) have also entered the market in
ultrasound and X-ray segment.
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Which brand of imaging equipments are you using?
MRI Ultrasound CT X-Ray
Siemens 6 7 14 17
GE 4 22 6 11
Philips 1 7 3 7
Other(Please Specify)_________ 10 9
Analysis and interpretation:
The market span of the imaging equipments in Delhi region of different companies is
analysed. Siemens has captured 55% and 61% of the market in MRI and CT
SCANNER, respectively. Philips has captured around 9% of the market in MRI
division which is very low as compare to GE and Siemens. Siemens covers 39% of
the share in the X-RAY division in the market. Also, Siemens has around 15% of the
market in the ULTRASOUND segment which is very less as compared to the share
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of GE which captures around 48% and other local competitors like Aloka, Mindray,
and Medison (22%). Thus GE is giving very tough competition to Siemens in
ultrasound segment. GE maintains its leadership largely due to its broad product
pricing range. Its sales efforts are equally focused on both its high end systems and
also the low end ones. The company keeps gaining market share in terms of units
due to its large customer base that buys low-end systems. Philips, Siemens rely on
brand loyalty and extended service contracts for their customers. Other aggressive
companies include Mindray, Aloka, Esaote, L&T, Sonosite, Blue Star, Medison,
Sonoscape, and Shimadzu.
Q7. Since how long are you using the current imaging equipment‟s?
<1 Years 1-3 Years 3-5 Years 5-7 Years >7 Years
MRI 2 2 1 1 5
CT 3 5 2 3 10
Ultrasound 5 8 11 4 18
X-ray 3 4 9 5 23
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Analysis and interpretation
Nearly 46% of the MRI machines installed in Delhi area are in used for more than 7
years. Some of the hospitals and diagnostic centres are even using the MRI
equipments for more than 20 years. As these machines have high durability and
expensive and it is difficult for the small diagnostic centres, private hospitals and
nursing homes to replace the machines after a short period of time. This analysis
also helps us to find out some potential customers who wanted to purchase new MRI
machines for their centres.
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Analysis and interpretation
45% of the CT SCANNER installed in Delhi area are in used for more than 7 years
and only 13 % of the machines are recently installed (within a year). 22% machines
are just 2-3 years old. Some centres are even using the CT SCANNERS for the last
15- 20 years. This shows the ruggedness of the machines as once installed, can be
used for many years. Like magnetic resonance imaging, these machines are also
very expensive and it‟s a difficult task for small hospitals (private, charitable, nursing
homes) and diagnostic centres to replace it after a short period of time. The CT
SCANNERS of Siemens are highly durable and they are also very expensive. This
analysis also helps us to find out some potential customers who wanted to purchase
new CT SCANNERS for their centres.
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Analysis and interpretation:
38% of the ultrasound machines are in functioning for more than 7 years and after
that 24% of the machines are in being used for 3-5 years. As major proportion of the
machines is older, thus it gives an area to find new potential customers. Majorly the
market is covered by GE ultrasound and other small brands like Aloka, Mindray and
Medison, and due to these small brands the market span of the Siemens in
ultrasounds is less as the machines offered by these small brands are not as
expensive as that Siemens. Thus to find new customers in this segment is a tough
task for Siemens.
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Analysis and interpretation:
52% the centres are using the X-ray machines for more than 7 years. We have even
collected the data from a diagnostic centres named as X-RAY DIAGNOSTIC
CENTER, 1 DLF CENTER GK-II which are using the X- ray machines since 1982
and that machine was of Siemens. This depicts the durability of the X-ray machines
manufactured by Siemens. By doing this survey we found some potential customers
who want to purchase new X-ray machines for their centres.
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What are your preferences or priorities when buying medical imaging
equipment (X-Ray, ultrasound, MRI, CT)?
1 2 3 4 5
Image Quality
Brand name
Price
Ease of operation
After sale services
Durability
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Analysis and interpretation:
When customer eyes these parameters before buying the equipment although,
every parameter is equally and duly important. However in order to ease the
analysis the parameters are ranked according to their responses recorded.
32% of the respondents say that image quality is the most vital factor that they
look for before purchasing any imaging equipment.
Since the cost of equipments is very high, it is seen that the respondents are very
concerned with the after sales service offered by the company. It has been the
second best priority for the respondents (24%).
Pricing strategies adopted by all brands are quite different from each other and
the prices of equipments are quite high, therefore respondents ranked the pricing
as the third best factor.
Imaging giants like Siemens, GE, and Philips have made their existence marked
by their holistic approach towards healthcare market. This makes brand name the
fourth choice for respondents (12%).
It has been seen that the private sector customers are not very much concerned
about the pricing, but this factor is given a due importance by diagnostic centers
and nursing homes.
Durability has been rated as the fifth and only 9% respondents believe that they
are concerned with the expected life cycle of the equipment.
Now-a- days, companies like Siemens provide an on-site demo of equipments to
the potential buyers, so as to make them familiar with how to use the machine.
About 3% of respondents ranked ease of operations as the 6th factor in their
priority list.
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Are you planning to buy any new imaging equipment or looking for any kind of
upgradability?
Yes [ ] No [ ]
If yes, then please specify: MRI [ ] Ultrasound [ ] CT [ ] X-Ray [ ] All [ ]
Analysis and interpretation:
From the survey conducted I come to know that there are 8 potential customers out
of which some are looking for procurement of new imaging equipments and some
are looking upgradability in existing one.
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Kindly Rate the health care equipment manufactured by different brands on
different parameters by considering the following criteria
[1]- LOW [2]- AVERAGE [3]- HIGH
Company
Parameter
Brand
Name
Image
Quality
Pricing
Durability
After
sales
Sales
Promotion
Siemens
Philips
GE
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Analysis and interpretation:
Brand name- it is a name, term, sign, symbol, or design or a combination of them,
intended to identify the goods or services of one seller or group of seller and to
differentiate them from those of competitors.
Brand image- it is the perception and belief held by consumers as reflected in the
associations held in consumer memory.
Brand knowledge- this is all the thoughts, feelings, images, experiences, beliefs that
become associated with the brand.
55% of the respondents rated that brand name of Siemens is higher than that of
Philips and GE. Only 18% of the respondents rated that brand name of Philips is
higher and 27% rated that brand name of GE is higher than any other brand. Thus,
Siemens‟ brand name is higher than any other brand.
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Analysis and interpretation:
Image quality is a characteristic of an image that measures the perceived image
degradation (typically, compared to an ideal or perfect image).
47% doctors and technicians think that image quality of the imaging equipments like
CT SCANNER, MRI, ULTRASOUND and X-RAY is far better than the imaging
equipments manufactured by Philips and GE. Siemens diagnostic equipments are
giving a very tough competition to different companies on the basis of image quality
of their equipments.
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0%
10%
20%
30%
40%
50%
60%
Siemens Philips GE
54%
25% 21%
PRICING
PRICING
Analysis and interpretation:
Price is the one element of the marketing mix that produces revenue; the other
elements produce costs. Prices are perhaps the easiest element of the marketing
program to adjust, products features, channels and even communication takes more
time. A well designed and marketed product can command price premium and reap
big profits. Price of the equipments manufactured by Siemens is higher than that of
the imaging equipments manufactured by GE and Philips and this can be seen from
the above mentioned graph which shows that about 54% of respondents rated that
price of the imaging and diagnostic equipments manufactured by Siemens higher
than the price offered by GE and Philips. The higher prices of the Siemens‟ imaging
equipments can be linked to the quality of the products which they are
manufacturing, and thus company is charging higher price than any other brand.
This thing in marketing terms refers to as Price-Quality Inferences, where price is an
indicator of quality.
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Analysis and interpretation:
Durability refers to the quality of equipment, or goods of continuing to be useful after
an extended period of time and usage. We can also say that it is the assurance or
probability that an equipment, machine or material will have a relatively long
continuous useful life without requiring an inordinate degree of maintenance.
From the graph, the equipments manufactured by Siemens are highly durable,
means they are long-lasting. 57% of the respondents rated that Siemens‟
equipments are long lasting and can be used for an extended period of time. 28% of
the people rated that GE‟s equipments are highly durable and 15% rated that Philips
equipments are highly durable. But still they are far behind the durability offered by
the Siemens‟ equipments.
0%
10%
20%
30%
40%
50%
60%
Siemens Philips GE
57%
15%
28%
DURABILITY
DURABILITY
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Siemens Philips GE
46%
15%
39%
AFTER SALES SUPPORT
AFTER SALES SUPPORT
Analysis and interpretation:
Periodic or as- required maintenance or repair of equipment by its manufacturer or
supplier, during and after a warranty period is very important. Siemens provides a
well defined AMC(Annual Maintainance Contract) policies that enables it to serve its
customers in a better way. Zrom the data collected from various centres, 46% of the
people are well satisfied by the after sales service provided by Siemens, 36% of the
people are satisfied by the after sales support of the GE and only 15% are satisfied
by the services provided by Philips. Thus, Siemens is leading in the after sale
service offer to their customers than any other brand.
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Analysis and interpretation:
Sales promotion is any initiative undertaken by an organization to promote an
increase in sales, usage or trial of a product or service (i.e. initiatives that are not
covered by the other elements of the marketing communications or promotions mix).
Sales promotions are varied. Sales promotion is one of the characteristics of the
marketing communication mix. Sales promotion tools offer three distinctive benefits:
Communication- they gain attention and may lead the consumer to the
product.
Incentives- they incorporate some concession, inducement, or contribution
that gives value to the consumer.
Invitation- they include a distinct invitation to engage in the transaction
now.
52% of respondents rated that sales promotion activities done by the GE is higher
than any other brand. Here only 18% of respondents rated that sales promotion of
Siemens is higher, which is quiet low as compare to Philips and GE. Therefore this is
the only area where Siemens needs to improve as this can help Siemens to increase
its market share for various products.
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Page 76
FINDINGS & CONCLUSION
The various findings have been quite illustrated in the graphs drawn. All these
findings have opened a very interesting scenario. There were some interesting
findings.
Siemens has a big market coverage in MRI and CT SCANNER capturing
55% and 61% of the market respectively. While the market coverage in X-
Ray division is 39% that of the ULTRASOUND segment is about 15%.
Siemens holds 35% market coverage in comparison to its competitors
when all the equipments are taken together.
On a whole, around 45% of the imaging equipments are in use from the
past 7 or more years.
The Respondents eye SIEMENS as a leader when it comes to Brand
Name, Image Quality, Customer Satisfaction Services and Durability of the
Imaging and Diagnostic equipments. However, the respondents feel that
SIEMENS lag Sales Promotions in comparison with its chief competitor
GE.
Respondents rate SIEMENS as the most valued brand in the Healthcare
Sector.
List of Potential Buyers :
List of hospitals New- Buying Upgradabiity
DCA- Shanti Mukund,Vikas marg X-ray and Ultrasound Machine
City Hospital, Pusa Road CT scanner
Sanjida Hospital,Bahadur Garh Road Ultrasound and Cardiac Monitor
Guru Tegh Bahadur Hospital MRI
Orbit-Imaging, Pusa Road Ultrasound and CT scanner MRI
Mool Chand, Lajpat Nagar-III CT scanner
Fortis hospital, Okhla X-ray Machine
Max Health Care, Saket Cathlab and MRI 3T
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Conclusion:
We can conclude that the strategies adopted by Siemens in the past to satisfy
customer requirements are warmly acknowledged by the end-users. The Siemens
stands firm in the competition with its rivals. With its vast product line, Siemens has
been successful in countering the moves played by its competitors. Siemens must
intensify the Sales Promotion activities in view of providing the boost to the sales
activities and to defend what it has earned since its intervention in the healthcare
sector. With its Customer oriented holistic approach, it‟s truly been where it should
be seen by its customers – A LEADER.
Limitations and Scope for Future Study :
No study is free from the limitations, so does mine. There are many limitations that
were encountered during the course of study and research process.
The limitation of the study is that only respondents and customers from Delhi city of
Delhi NCR have been taken into account. The data provided by the respondents
could be inaccurate because of the level of knowledge exhibited by them. Majority of
the respondants are the people who are the end-users of the equipments and their
responses may differ from that of the hospital administration or diagnostic centre
owners.
However the study has provided encouraging results and there is scope for deriving
more information if a more rigorous study is conducted with an increased sample
size to cover the entire region.
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BIBLIOGRAPHY
List of Websites:-
www.siemens.com/entry/in/en
www.medical.siemens.com
www.gehealthcare.com
www.healthcare.philips.com/in_en
www.pwc.com/healthcare
www.google.com
www.wikipedia.com
www.intranet.siemens.com
www.gken.org/Docs/India_healthcare_19feb.pdf
www.salisonline.org/market-research/global-medical-image-processing-
market-2010-2014
www.expresshealthcare.in/201011/market07.shtml
www.medicexchange.com/Ultrasound/report-on-india-ultrasound-systems-
market.html
Books & Reports :-
Zikmund, William G., Exploring Marketing Research; Thomson
Kothari, C.R 2004, Research Methodology : Methods & Research; New Age
Publications
Siemens Ltd. Annual Report 2010
EHS Report 2010
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ANNEXTURE
QUESTIONNAIRE
Name of the hospital/
centre
Address
Name
Designation
Telephone
Mobile
Q1. What type of centre do you work at? Check all that apply :
Government hospital
Private hospital
Diagnostic centre
Nursing home
Charitable hospital
Any other (please
specify)
Q2. Does your hospital have a formal policy or procedure for equipment
procurement?
Yes [ ] No [ ] Don‟t know [ ]
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Q3. Who helps decide which equipment the hospital procures? Who most often
leads the team that decides? Check all that apply :
Hospital administrator [ ]
Doctor /other equipment user [ ]
Medical equipment maintenance department manager. [ ]
Any other (please specify) [ ]
Q4. From where do you get your spare parts? Check all that apply.
Scavenge from obsolete equipment [ ]
Order from manufacture or vendor [ ]
Make from locally available supplies [ ]
Others (please specify)
Q5. What type of medical imaging equipments do you have in your hospital/centre?
CT [ ] MRI [ ] Ultrasound [ ] X-Ray [ ] All [ ]
Q6. Which brand of imaging equipments are you using?
MRI Ultrasound CT X-Ray
Siemens
GE
Philips
Other
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Q7. Since how long are you using the current imaging equipment(s)?
<1 Years 1-3 Years 3-5 Years 5-7 Years >7 Years
MRI
CT
Ultrasound
X-ray
Q8. What are your preferences or priorities when buying medical imaging
equipment? (Kindly rate from 1-5 points with 1 being the least priority and 5 being
the highest priority)
1 2 3 4 5
Image Quality
Brand name
Price
Ease of operation
After sale services
Durability
Q9 Are you planning to buy any new imaging equipment or looking for any kind of
upgradability?
Yes [ ] No [ ]
If yes, then please specify: MRI [ ] Ultrasound [ ] CT [ ] X-Ray[ ] All [ ]
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Q.10. In how much time are you planning to buy the new imaging equipment?
<1 month [ ] 1-3 months [ ] 3-6 months [ ] within an year [ ]
Q11. Kindly Rate the health care equipment manufactured by different brands on
different parameters by considering the following criteria :
[1]- LOW [2] – AVERAGE [3] – HIGH
Company
Parameter
Brand
Name
Image
Quality
Pricing
Durability
After
sales
Sales
Promotion
Siemens
Philips
GE
Signature: ______________________