With the continuous progress and improvement of the national basicmedical instruments system, the demand for medical instrument increases,thenhuge consumer demand for medical instrument companies is a challenge and opportunity.The enterprise development strategy is the key to gain market share in thehighly competitive Chinese medical instrument industry. Through the analysis ofthe external environment and internal environment of SIEMENS medical treatmentin the Chinese market, then comprehensive application strategy managementanalysis method, namely PEST analysis method, SWOT analysis method to analyze andevaluate the strategy of SIEMENS medical treatment to determine the developmentstrategy of SIEMENS medical

Key words: Siemens Medical;Development Strategy; PEST Analysis; SWOT Analysis

Introduction

According to customs data: in 2014, China's medical equipmenttrade amounted to more than 260 billion yuan, it is expected in 2015 will bemore than 300 billion yuan. In addition, it is worth noting that China'smedical equipment accounted for only 14% of the total size of thepharmaceutical market, which has a huge rise in the proportion of 42% of Europeand the United States developed countries. With the improvement of economicdevelopment and the people's healthy consciousness, and urbanization continuesto advance and reform of the medical and health system continued to deepen,from high-end medical equipment in hospitals equipped with to convenient homemedical equipment will usher in a highly in demand growth, will bring the broadprospects for development for the domestic medical equipment industry. Medicalequipment technology development "twelfth five-year" specification ofstrides opened the domestic medical equipment industry development prospects[1]. With two or three types of the medical enterprise management approvalauthority down and a series of policies, domestic medical equipment industryhas ushered in the wider development opportunities. SIEMENS healthcare is oneof the world's largest providers of medical solutions, is a leadingmanufacturer and service provider in the field of medical imaging, laboratorydiagnostics, medical information technology and listening equipment. Facing therapid growth of the market scale and the increasingly fierce competition in themarket, Siemens Medical must through consider the situation, keep pace with thetimes, and grasp the opportunity to be in an invincible position in the newround of market competition.

1 Analysisof the macro environment of SIEMENS medical Chinese market: PEST analysis

Successful companies are companies that are able to meet the needsand trends that have not yet been met in the macro environment and are able tomake a profit. Therefore, if the enterprise can grasp the needs and trends ofthe macro environment, it will be able to develop the right strategy, newproducts and marketing strategies and it can be recognized by the market, toobtain greater success.

Enterprises and its customers, marketing intermediaries,suppliers, competitors and the publicare operating in a greater strength and trend in the macroenvironment; it can bring opportunities, but also lead to threats. The power ofthese areas is "not controlled", therefore, enterprises must monitorand respond to this. Based on the macro analysis of the basic tools—PEST analysis, analysis of political / legal (Political), economic(Economic), social (Social) and Technology (Technological), etc..

1.1political / legal environment analysis

Political environment has a significant impact on China's medicaldevice market. Opportunities and challenges brought by the new medical reformpolicy to the medical device industry, market prospects are broad, nearly threeyears, the national investment on medical devices industry has exceeded theoriginal sum of more than 40 years, such as Medicare coverage, strengthencommunity medical and rural medical and health service system constructionetc.; during the "Twelfth Five Year Plan" period, China will investmore funds to support the medical device technology level and productinnovation and development [1]. China has increased its investment in primarymedical institutions, more and more investment, the market is growing at a highrate of 15%-20% per year, to provide opportunities for the development ofmedical devices [2]. With the deepening of political reform, the strategy ofgoverning the country by law to be implemented, administrative examination andapproval authority delegated further, medical device market will be furtherreleased, and toward the standardization, legalization and marketization ofcontinuous development.

In recent years, China's introduction of the medical deviceindustry related policies, involving the most important is the reform ofmedical system and medical device security management, combined with theimplementation of government guidance and market mechanism, to encouragediversification of organized medicine, improve the service system, systeminnovation, enhance internal management. Overall allocation of medicalresources between urban and rural areas and between regions, to promote thehealthy development of public hospitals, to meet the basic needs of thepeople's basic medical services, to effectively ease the masses of expensive,difficult to see a doctor. These reforms will greatly increase the demand formedical equipment, and at the same time, the production of medical equipment,the level of production of the industry have put forward more stringenttechnical requirements, but also developed a more perfect laws and regulations [3].This also makes the medical device industry towards a more standardizeddirection.

1.2economic environment analysis

The economic situation of a country affects the performance ofspecific enterprises and industries. Therefore, enterprises need to study theeconomic environment, in order to explore the trend of the changes, as well asthe implication of the strategic significance. The economic environment isworthy of the economic characteristics and development direction of anenterprise which belongs to or may participate in the competition. The study ofthe economic environment needs to study the purchasing power of all the peoplein the society, and the actual purchasing power of the economy depends on thecurrent income, price, savings, debt and credit. Marketers must pay closeattention to the main trends in the pattern of consumption expenditure andchanges in the income and consumption.

Since the reform and opening up, China has become the most dynamicregion in the world economy. China's medical device industry growth is alwayshigher than the same period GDP growth, the status of the national economygradually increased. It is expected that the country will maintain thestability and continuity of macroeconomic control policy in the coming period,the national economic development situation is good, to create a good economicenvironment for the development of medical device industry.

1.3 socialenvironment analysis

Green, health, environmental social, health, environmentalprotection concept has become increasingly popular, people constantly improvein health consumption, government investment is constantly increasing, somedical equipment sales situation will getting better and better. With theaccelerated aging of China and the improvement of living standards, the demandfor medical treatment will be further increased.

1.4technical environment analysis

Within the medical profession new technology application speedcontinues to accelerate, the application of new technology patents orenterprise emerge in endlessly, and is constantly deriving new areas of productor industry development, such as biological materials, biochemical instrumentsand reagents (in vitro) diagnosis, therapeutic instrument, traditional Chinesediagnosis therapy etc.

Some experts pointed out that the future of biology andnanotechnology has a very important role in medical devices. The United StatesSullivan Frost market Information Company made a forward-looking description ofthe medical device industry. Information technology, medical imagingtechnology, medicine and medical equipment synergies and result in a number ofnew treatment methods. Computer aided technology, wireless technology, medicalimaging technology, coating technology and laser technology and so on willbecome an important medical device technology. The wide application of Internetand other information technology has also changed the mode of communicationbetween enterprises and customers.

2 SIEMENShealthcare China market analysis - SWOT analysis

SWOT analysis is a strategic analysis framework proposed byHarvard University professor Andrews in 1970s, the first to be used forcorporate strategic management, and later extended to all aspects of social andeconomic management. It consists of four elements: S (strengths), W(weaknesses), (), O (opportunities), T (threats), said the opportunity toexpress the threat.

2.1S-Strength

SIEMENS is an international brand with a long history andbrilliant achievements, focusing onelectrification, automation and digital field, SIEMENS occupies aleading position in the field of medical imaging equipment and laboratorydiagnosis. SIEMENS's diversification and globalization of business operations,which in itself is a competitive advantage.

As one of the largest equipment and solutions provider in thefield of global health, SIEMENS has a very complete product line fromdiagnostic imaging systems, to treatment equipment, to patient monitoring systemsand hearing aids, and so on, at the same time, it provides hospitals, clinicsto provide some optimization business processes, improve the efficiency of thesolution and from data management to disease prevention, treatment and nursingprocess management of a series of services.

SIEMENS healthcare have product development center in Germany,China and many countries in the world, responsible for new product developmentand testing.Strong R&Dstrength can ensure the upgrading of products and the ability to upgrade.SIEMENS provide quality services and complete solutions to helpcustomers achieve practical, sustainable clinical effects and economicbenefits.Siemens Healthcare inaddition to give the user to provide the most advanced technology, the mostreliable quality of the products and complete solutions, in order to ensure thenormal operation of equipment to ensure customers get fast and convenienttechnical support and services, in China has also established a perfect servicenetwork system.

2.2W-Weakness

SIEMENS medical products market occupancy rate of only 11.7%, farless than 21.9% of the market share of competitors’ general medical. SIEMENS isstronger than the other competitor, PHILPS with a slight advantage.

General medical localization process has far more than the SiemensHealthcare,general medical chooseto cooperate with domestic medical institutions,with the local medical institutions in the basic medical aspectsof the rich market and product experience, rapid expansion of the market. GMChina's R & D and production system has been completed, has been able toprovide world-class high-end medical equipment, market share has reached50%-60%,and become the absolute leader in the market [4]. GM is not onlyexpanding the Chinese market, but also gradually put China on the core positionof its global development. Medical equipment produced in China not only suppliesthe market of our country, but also supply the global market. China has replacedEurope as the largest market for medical equipment outside the United States.SIEMENS medical localization strategy has lagged behind the general medical.

2.3O-Opportunity

China is Asia’s and the world's largest producer of medical equipment,it is one of the ten emerging markets in the world of medical equipment.Industry data show that China's investment in medical equipment will grow at anannual rate of 13%. China has grown into the world's second largest medicaldevice market, second to the United States. The future of high-end medicalequipment market demand will continue to grow strongly.

With the further implementation of the western development, therise of central China, The Belt and Road national strategy, and the deepeningof medical system reform, the government increased the basic public healthnetwork inputs to medical device manufacturers bring new market space. SIEMENSmedical pay attention to the rural areas, which with great potential of themarket and a large population. It put forward the new rural plan, and toprovide a large number of township health and medical institutions to providecomplementary medical equipment. The strategic cooperation between SIEMENS andthe Chinese Hospital Association for the development of "green hospital"will be an important trend in the future development of the hospital. Siemenswill with the Chinese Hospital Association together to develop the a long-termstrategic cooperation, help more Chinese hospitals to establish a "greenstandard", including energy saving, green environmental protection in vivoand in vitro medical equipment, advanced without film, paperless medicalinformation technology and green building technology.

2.4T-Threaten

Universal healthcare is SIEMENS's biggest competitor in China,general electric medical company has occupied half of the market share of theChinese CT and MRI equipment and other high-end medical equipment, in the fieldof China's high-end medical equipment, general medical market share has reached50% ~ 60%, and it is a market leader in the vast. PHILPS is also an importantcompetitor for SIEMENS in the Chinese market, Philips and Neusoft group, ajoint venture of the Philips and Neusoft Medical Systems Co. Ltd., integratePHILPS’s medical technology leading products and rich experience ininternational marketing, and integrate Neusoft’s service resources in domestic,in order to improve the technical and management capabilities of Neusoft in theregion, to accelerate the localization strategy of PHILPS.

3 SIEMENS medicaldevelopment strategy in China

3.1increase localization efforts

The main ways of Siemens into China are representative office,joint ventures and wholly owned company. First entered China chose the equityjoint venture set up representative offices and acquisitions. China is one ofthe most important markets for SIEMENS healthcare. China has become thecornerstone of Siemens global business, the backbone of the business in theAsia Pacific region, it is by will continue to strengthen the localization ofproduction and research and development, improve the local procurement, improvethe management training and leadership development level, to promote andimplement the process of localization strategy; by in China, Chinese design,with local rival similar value chain structure of the production of productsenhance its competitiveness in China. Specific performance: the localization ofR & D, set up R & D center and Siemens China ResearchInstitute; product localization, in China set up a number of productionenterprises; human resource localization, the total number of employees of theSiemens is 32000, the localization of staff rate more than 99%, which led tothe establishment of Siemens Management Institute in China. SIEMENS medical tofurther increase the localization efforts, approached the customer and providethe best products and services portfolio, to promote China to achievesustainable, high quality development. SIEMENS has 6 operating companies inChina, more than 3000 employees, for China, Asia and the global market,including CT, MR, X light, ultrasound, hearing and laboratory diagnosticequipment, including a large number of medical products. SIEMENS Medical Chinaheadquarters in Shanghai, international medical park has developed into one ofChina's largest medical equipment base. Siemens and the Siemens X-ray vacuumtechnology (Wuxi) Co., Ltd. (Shenzhen) magnetic resonance Co., Ltd. has becomefollowing the outside Germany only X-ray and nuclear magnetic resonance (NMR) R& D and production base. One of SIEMENS's core values is to become anexcellent corporate citizen in China, actively participate in environmental protection,science and technology education and social and humanitarian assistanceactivities, and actively participate in building a harmonious society.

3.2 Improvethe research and development and production capacity

In recent years, Siemens Medical actively expand business areasand improve the R & D and production capacity, Siemens MedicalDiagnosis by adding further enrich the company's product line, making Siemensbecame a home to customers provide diagnosis and treatment of a full range ofproducts and solutions company. As a clinical diagnostic industry leader,Siemens Medical diagnosis not only provides innovative, wide range of products,but also provides rich and varied test menu and it solutions, with rapidresponse to customer service, for the customers to optimize the laboratory workflow, improve operation efficiency and improve the effect of patient care andprovide the most effective help. In order to meet the requirement of thecomprehensive development of China's medical, especially medical infrastructurebrought about by the rapid development of the service demand, Shanghai SiemensMedical Instruments Co., Ltd. (SSME) is Siemens in Germany only overseas CT R& D and production centers, SSME is worldwide except Germanyheadquarters is the largest X-ray system in the development and productionbase. SSME is also concerned about the majority of basic medical market demand,focus on the development of high efficiency and economical s.m.a.r.t. series ofproducts, namely: easy to use simple, easy maintenance, maintenance friendly,appropriate price affordable, reliable, durable (reliable and timely, timely tomarket). In addition, Siemens and the Siemens X-ray vacuum technology (Wuxi)Co., Ltd. (Shenzhen) magnetic resonance Ltd. cumulative investment of hundredsof millions of yuan for imaging products R & D and production, so as toimprove the ability of research and development and productivity to meet theneeds of China and global market demand.

3.3 Activelyparticipate in China's basic medical services

The development of medical technology in the final analysis is toallow more people to enjoy a healthy life. SIEMENS as the world's leadingprovider of medical solutions, in the continuous exploration of cutting-edgetechnology at the same time taking into account the corporate socialresponsibility. Since the Siemens in 2008 in Luochuan County, Shaanxi Province,established the first "Siemens new rural medical demonstrationcenter", Siemens Medical vowed to help China foundation for thedevelopment of medical career. 2010 Siemens invested Sichuan reconstruction,Chongzhou City, Gongyi Township Public Health Institute, and with theaffiliated Huaxi Hospital of Sichuan University jointly launched the HealthHospital of counterpart aid projects. 2011 Siemens to Jinggangshan Hospital oftraditional Chinese medicine and in Jinggangshan area 18 township hospitalsdonation total of about 190 million yuan of equipment, and joint FudanUniversity Huashan Hospital together to carry out for Jinggangshan Hospital oftraditional Chinese medicine provides a full range of training assistanceproject. As a full range of medical solutions provider, SIEMENS healthcare willwork with the Chinese government and enterprises to further expand the productmix to support the sustainable development of China's health care. With theintroduction of the "Twelfth Five Year Plan" and the new health carereform gradually thorough, Siemens will further increase investment in thefield of basic medical, by virtue of the advantages of technologicalinnovation, take practical action to improve the health level of the ruralareas, let more people have access to high-quality medical services.

3.4 Innovationmanagement to enhance the core competitiveness

Prahalad and Gary Hamel in the classic of the company's corecompetitiveness, "the first proposed the concept of" corecompetencies ", also pointed out:" company is just like a tree, thetrunk and major branches is the core product, the more slender branches arebusiness units leaves, flowers, and fruit are end products. Root is the corecompetitiveness of the company to provide nutrients and play a supporting rolein the root of the company." SIEMENS's innovation management is the rootof the trees to provide nutrients and support a fixed role". There arethree different meanings of innovation management: one is managementinnovation; two is the management of innovation activities; the three is theinnovation management. SIEMENS's innovation management refers to the managementof innovative activities, including innovative technology management,innovation and product management, innovation and talent management. Innovationis the people's understanding of the law of development, deepen and sublimate,innovation is to explore new knowledge, promoting development, the premise ismust have the correct way of thinking, scientific and realistic attitude,reform and innovation of courage. Innovation is according to the needs of theobjective, the existing production factors, existing conditions and technologycombined together in a new leap forward, in order to improve the productionefficiency, product innovation value, for the enterprise into the marketprovides a convenient, for the final product to bring customers perceived valuecontribution and innovations for competitors to imitate, so as to enhance thecore competitiveness of enterprises. SIEMENS in the continuous innovationcycle, keep the strong vitality, although the last hundred years of youth.

4Conclusion

After the financial crisis, Chinese along with the deepening ofpolitical and economic reform as well as the "The Belt and Road"national implementation of the strategy, brings opportunities and challenges tothe enterprise, only grasp the opportunity to innovate in order to make adifference in a new round of development. In the face of increasingly fiercecompetition today, whether it is multinational corporations and localenterprises in China must be faced with the changing external environment,while strengthening internal management and operation, company and thesurrounding environment as a system to consider, to formulate and adjust theircompetitive strategy, to enhance the core competitiveness of enterprises, inorder to in the fierce competition in the market continue to grow.