Even highly successful companies see at some point the need to go beyond, expand their horizons and test if those same products which proved to be successful in their local markets can also do it again far away from home in new, bigger and unknown markets. It is then when companies see themselves confronted with some urgent questions: which markets should I enter into? Which resources (budget, personnel, infrastructure, etc.) should I invest to achieve it? Are my current assets and know-how the right ones to be able to succeed in those new markets? And finally the big final question arises: what strategy should I use?
As the reader will have probably figured out by now, there is no fix answers to those questions and as it often happens in business, the environment, structure of the company, its culture or go-to-market approach will plat a key role in the final results. In this assignment our goal will be the description, discussion and critical analysis of a successful case which, due to the origin of our company and the sector in which it operates, shows how family-owned medium-seized companies can also become industry leaders using global strategies based on exactly the same factors which made them successful in their own local market.
Table of Contents
1. Introduction
2. Problem definition and objectives
3. Micro Environment (Porter’s 5 Forces)
3.1 Rivalry among existing competitors
3.2 Bargaining power of suppliers
3.3 Bargaining power of buyers
3.4 Threat of new entrants
3.5 Threat of substitutes
4. Macro Environment
4.1 Political
4.2 Economic
4.3 Social
4.4 Technological
4.5 Environmental
4.6 Legal
5. Main competitive advantage
6. Internal Analysis
6.1 Strengths
6.2 Weaknesses
7. External Analysis
7.1 Opportunities
7.2 Threats
8. International distribution channels
9. Strategy execution
10. Conclusion
Research Objective & Focus
The primary goal of this assignment is to perform a critical analysis of Sennheiser's international sales strategy. The study examines how a medium-sized, family-owned company leverages its core competencies and "made in Germany" reputation to achieve a global competitive advantage despite the presence of larger multinational corporations.
- Analysis of the competitive audio market landscape using Porter’s 5 Forces.
- Evaluation of the PESTEL macro-environmental factors affecting international operations.
- Examination of Sennheiser’s core competitive advantages and internal capabilities.
- Discussion of international distribution strategies and logistical partnerships.
- Critical review of the global strategy versus local market adaptation.
Excerpt from the Book
8. International distribution channels
That a relatively small company like Sennheiser has succeeded in placing its products in all major markets is a big achievement. To manage it Sennheiser relies since the introduction in 2013 of its new distribution strategy, on a dense network of distributors and resellers carefully accredited as Sennheiser authorized partners that make sure products are brought to the final customer respecting the same buying experience worldwide. According to Gerhard Tammen, Vice-President Sales EMEA, Sennheiser ensures that distribution standards are the same all over Europe and that customers receive everywhere the quality of service they expect from Sennheiser. This confirms that Sennheiser’s distribution strategy puts its focus in transferring its premium experience –unaltered- to any new market the company is penetrating.
This network of sales partners and resellers has to be supplied reliably in a global market with seasonal peaks and big volume fluctuations. For that Sennheiser relies on a close partner that manages its global logistic operations worldwide with more than 16 million products delivered every year. It is the company Arvato which initially took care of Sennheiser’s global distribution for the EMEA Region but extended later on its span to North and South American, and Asia. Based on three three distribution centers in different continents, Arvato’s operations ensure streamlined processes and maximum control of global inventories.
Summary of Chapters
1. Introduction: Provides an overview of Sennheiser’s corporate history, product portfolio, and its status as a leading German manufacturer of high-quality audio equipment.
2. Problem definition and objectives: Defines the core research question regarding whether Sennheiser maintains a standardized sales strategy globally or adapts its approach to specific foreign market conditions.
3. Micro Environment (Porter’s 5 Forces): Analyzes the intensity of competition, the power of buyers and suppliers, and the threats posed by new entrants and product substitutes within the global audio industry.
4. Macro Environment: Explores the external political, economic, social, technological, environmental, and legal factors that influence Sennheiser's international business operations.
5. Main competitive advantage: Explains how the "made in Germany" label serves as a unique selling proposition linked to reliability, precision, and high quality.
6. Internal Analysis: Discusses the strengths, such as the company’s flexible size and brand power, alongside weaknesses like limited financial resources compared to massive conglomerates.
7. External Analysis: Identifies growth opportunities in digital trends and emerging middle classes, while addressing risks like currency fluctuation and economic instability.
8. International distribution channels: Describes the reliance on a global network of authorized partners and logistical support from Arvato to maintain service quality.
9. Strategy execution: Details the transition toward a global sales strategy, leveraging standardization and effective segmentation to maintain competitive advantage.
10. Conclusion: Summarizes how Sennheiser’s strategic management successfully navigates the limitations of being a medium-sized enterprise in a globalized economy.
Keywords
Sennheiser, Global Sales Strategy, Audio Industry, SME, Internationalization, Porter’s 5 Forces, PESTEL, Made in Germany, Distribution Channels, Market Segmentation, Competitive Advantage, Digitalization, Emerging Markets, Brand Positioning, Supply Chain Management.
Frequently Asked Questions
What is the core subject of this paper?
This paper examines the international corporate and sales strategy of the German audio equipment manufacturer, Sennheiser.
What are the central thematic fields covered?
The study focuses on strategic management, international distribution, competitive analysis, and global market adaptation for medium-sized enterprises.
What is the primary research objective?
The goal is to determine if Sennheiser applies a uniform global sales strategy or if it modifies its approach to accommodate the specific needs of diverse foreign markets.
Which scientific framework is used for the analysis?
The author utilizes Porter’s 5 Forces for the micro-environment analysis and the PESTEL framework to evaluate global macro-environmental factors.
What does the main body of the work address?
The main body covers market analysis, internal/external evaluations (SWOT), distribution network management, and the implementation of a global strategy.
Which keywords best characterize the work?
Key terms include Sennheiser, Internationalization, Global Sales Strategy, SME, Competitive Advantage, and Market Segmentation.
How does the company's size influence its global strategy?
While size is a limitation regarding financial muscle, it allows Sennheiser to be more flexible and responsive to market changes compared to larger multinational corporations.
What role does the "made in Germany" brand play?
The brand functions as a core competitive advantage, signaling reliability, precision, and premium quality to customers globally.
How does Sennheiser manage global distribution?
Sennheiser utilizes a dense network of accredited partners and outsources global logistics to specialized providers like Arvato to ensure consistent service levels.
- Arbeit zitieren
- Santiago Mas (Autor:in), 2017, Successful Global Sales Strategies in SME, München, GRIN Verlag, https://www.grin.com/document/437673
