Professional Documents
Culture Documents
Middle
Presented By:-
Rizu Gupta
A1802009390
Section D
MBA-IB
Siemens Nixdorf
• Siemens Nixdorf Informationsysteme (SNI) was the largest European-
owned computer manufacturer and information technology vendor in
1994.
• The company was created by a 1990 merger between Nixdorf Computer,
an entrepreneurial minicomputer firm founded by a German software
engineer, and the mainframe computer division of Siemens AG, the
German electronics giant.
• The company offered a broad range of computer products, from personal
computers and mainframes to software and support services.
• In 1994, the company posted a revenue of $8 billion ad employed 39,000
people.
• In addition to the Munich headquarters, SNI had divisions in multiple
locations across Europe and around the world.
• Despite its size and a strong market presence in Europe, SNI did not post a
profitable quarter since the merger.
• The company then lost over $350 million.
• Over 65% of its products were sold in Germany, and the company lacked
base in the growing markets of Asia and North America.
• Technology focus was high but SNI was slow to shift to market realities
that required more customer responsiveness and less emphasis on large
mainframe systems.
• As per the industry analysts , the company was hampered by a rigid
corporate culture established during the 1991 merger.
• The organizational structure was too bureaucratic in its approach to
decision making for the rapidly evolving market.
Gerhard Schulmeyer