This document deals with the development of a sales strategy for a key account customer conducting business across domestic boundaries. The idea of key account management and the geographic distinction of it as well as the process of strategic management in this context are discussed.
The focus lays on the adaptation of the strategic management process to the particularities of international key account management.
In the course of this paper it is illustrated how key account management, with the key account customer as the core element, affects the strategic management process by using it with focus on a single customer instead for a whole industry.
For the purpose of taking key account management on an international level, different levels of internationalisation are described and applied to the concept of key account management. As a result of this description the expanded concept of key account management to a global level – global account management – is presented.
After describing the essentials of strategy, key account management and strategic management, these elements are merged and the different underlying analytical concepts are presented. The main analytical concept is based on Michael E. Porter's 'competitive strategy' and the five competitive forces.
Following the description and the merging of the models, the theoretical framework is applied to the practical case of the 'T‑Mobile International' account at Siemens Mobile Networks. The practical case includes the analysis of the business relationship and leads to a final strategy.
Keywords:
Global account management
Key account management
Strategic management
Strategy development
Geographical distinction
Table of Contents
1 Introduction
1.1 Motivation of the study
1.2 Objectives
2 Theoretical Background
2.1 Explanation of terms
2.1.1 Strategy
2.1.1.1 The background of strategy
2.1.1.2 Strategy in Business Management
2.1.2 The Key Account
2.1.2.1 Differentiating the Key Account from the Key Account Team
2.1.2.2 A special kind of customer - The Key Account
2.1.2.3 Geographical distinctions of Key Accounts
2.1.3 Key Account Management
2.1.3.1 The origin of Key Account Management
2.1.3.2 Elements of Key Account Management
2.1.3.3 Elements of geographical distinctions in Key Account Management
2.1.3.4 Reasoning for Global Account Management
2.2 Strategy Development
2.2.1 The process of strategic management
2.2.1.1 Determining the Status Quo – Initializing the Strategic Management process
2.2.1.2 Market analysis
2.2.1.3 Company analysis
2.2.1.4 Strategic analysis
2.2.1.5 Vision and Mission
2.2.1.6 Strategy development
2.2.1.7 Strategy implementation
2.2.1.8 Strategy control and adjustment
2.2.2 The various approaches to strategy development
2.2.2.1 The market-based view
2.2.2.2 The resource-based view
2.2.2.3 The dynamic view
2.2.3 Levels of strategy
2.2.3.1 Corporate level
2.2.3.2 Business unit level
2.2.3.3 Functional level
2.2.3.4 Operational level
2.2.4 Porter's three generic strategies
2.2.4.1 Cost leadership
2.2.4.2 Differentiation
2.2.4.3 Focus
2.3 Findings
3 Applying Global Account Management to the Process of Strategy Development
3.1 Adaptations to the strategic management process
3.1.1 Analysis of the business status quo
3.1.2 Environment / Market analysis
3.1.3 Company analysis
3.1.4 Strategic analysis
3.1.5 Vision and Mission
3.1.6 Strategy development
3.1.7 Strategy implementation
3.1.8 Strategy control and adjustment
3.2 Adapting the various approaches of strategic management
3.2.1 Adapting the different views of strategic management
3.2.1.1 The market-based view
3.2.1.2 The resource-based view
3.2.1.3 The dynamic view
3.2.2 Levels of strategy
3.2.2.1 Corporate level strategy
3.2.2.2 Business unit level strategy
3.2.2.3 Functional level and operational level strategy
3.2.3 Porter's three generic strategies
3.3 Findings
4 Applying Theory to Reality – The Case of T-Mobile at Siemens Mobile Networks
4.1 The Status Quo of the businesses between Siemens and T-Mobile
4.1.1 The position of Siemens and T-Mobile in the industry value chain
4.1.2 The satisfaction level of T-Mobile with Siemens MN and performance discrepancies
4.1.3 The current strategy of Siemens MN for the customer T-Mobile
4.2 Market and Customer analysis of the Key Account T-Mobile
4.2.1 The analysis of the competitive market forces for the mobile communication industry
4.2.1.1 Rivalry amongst the competitors
4.2.1.2 New entrants
4.2.1.3 Substitute products
4.2.1.4 Bargaining power of the supplier
4.2.1.5 Bargaining power of the customer
4.2.1.6 Complementors in the mobile communication industry
4.2.1.7 The global market for mobile communication equipment
4.2.1.8 The market paradigm in the mobile communication industry and possible changes
4.2.2 The position of T-Mobile in the mobile operator market
4.2.3 SWOT Analysis of T-Mobile
4.2.4 T-Mobile's strategy
4.2.5 Possible business development scenarios of T-Mobile
4.2.6 The organisational structure of T-Mobile in relation to the purchasing process
4.3 Company analysis of Siemens
4.3.1 The interdependence between T-Mobile and Siemens
4.3.2 The organisational setup of the T-Mobile global account team at Siemens
4.3.3 Availability of Siemens products in the customers countries
4.3.4 SWOT Analysis for Siemens MN
4.3.5 The strategy of Siemens on different company levels
4.3.6 Alliances of Siemens and the global account team
4.3.7 The global frame and pricing agreement between Siemens and T-Mobile
4.4 Strategic analysis
4.4.1 The geographical characteristics of T-Mobile
4.4.2 The market characteristics and competitive situation
4.4.2.1 The current and future addressable market split into regions
4.4.2.2 The share of wallet of the current addressable market
4.4.2.3 The suppliers footprint at T-Mobile and spending allocation by technology
4.4.2.4 Strategic match between T-Mobile and Siemens Mobile Networks
4.4.2.5 The relationship level between Siemens and T-Mobile
4.5 Vision and Mission of the Global Account Team 'T-Mobile'
4.6 The global account team strategy for the customer T-Mobile
5 Prospects, Limitations and Conclusions of the Study
5.1 Prospects
5.2 Limitations
5.3 Conclusion
Objectives and Topics
The thesis aims to develop a structured sales strategy specifically tailored for an international key account customer in the telecommunications industry, using the case of T-Mobile and Siemens Mobile Networks. The central research objective is to create a process-oriented strategic framework that adapts traditional strategic management models to the unique requirements and complexities of managing a global key account relationship.
- Strategic management processes within international Key Account Management (KAM)
- Geographical challenges and internationalization in B2B sales
- Analysis of competitive forces (Porter's Five Forces) in the telecommunications sector
- Customer-centric strategy development for global accounts
- Implementation of Global Account Management (GAM) practices in practical business scenarios
Excerpt from the book
The market-based view
The most influential view in recent years was the market-based view, initiated at the Harvard Business School and mainly represented and driven by PORTER. He assumes that the success of a business depends on the attractiveness of the industry and the position that the business holds in this industry. The basis of PORTER's view is the 'Structure-Conduct-Performance-Paradigm' approach by MASON/BAIN. According to this approach the competitive advantage (performance) is a result of the industry structure and the strategic behaviour (conduct) of the company. The market-based view sees the positioning of the company in a market as the essential origin of a strategy and views the company from the perspective of the sales market (outside – in – perspective). Factors for success are derived from the demand of the market or environment. In consequence, 'product-market-strategies' are developed. One problem resulting from this view is defensive positioning, meaning that strategies that shift market barriers or develop completely new markets are neglected by only considering established industries as they are the only ones where an activity level can be determined (cf.: Bea et al., 2001; p. 24-25).
Summary of Chapters
1 Introduction: Provides an overview of the motivation and objectives for conducting this study on international key account management.
2 Theoretical Background: Defines key concepts such as strategy, key account, and key account management, and explores the strategic management process and its various approaches.
3 Applying Global Account Management to the Process of Strategy Development: Explains the necessary adaptations to the strategic management process to make it suitable for global account management scenarios.
4 Applying Theory to Reality – The Case of T-Mobile at Siemens Mobile Networks: Examines the practical application of the theoretical framework through an in-depth analysis of the relationship between T-Mobile and Siemens.
5 Prospects, Limitations and Conclusions of the Study: Summarizes the key findings and addresses potential limitations and future research directions for the field of global account management.
Keywords
Global account management, Key account management, Strategic management, Strategy, Transnational business, Siemens, T-Mobile, Industry value chain, Market analysis, Competitive forces, Porter's Five Forces, Share of wallet, Global frame agreement, Mobile communications, Strategic fit
Frequently Asked Questions
What is the primary focus of this research paper?
The paper explores how to develop and implement a sales strategy for a global key account customer, specifically applying these principles to the practical business relationship between Siemens Mobile Networks and T-Mobile.
What are the central thematic fields covered?
The study centers on strategic management, international Key Account Management (KAM), the dynamics of the telecommunications industry, and the adaptation of standard corporate strategic processes for individual customer management.
What is the ultimate goal of the research?
The objective is to design an optimized process for developing a sales strategy under the specific, complex conditions of international and global account management.
Which scientific methods are employed?
The author utilizes a combination of theoretical model analysis (e.g., Porter’s five forces, strategic management models) and practical field data, including customer satisfaction surveys, expert interviews, and internal company documents.
What does the main body of the work address?
The main part provides a theoretical framework for KAM, adapts this framework to global account management, and then tests its practical applicability through the specific case study of T-Mobile.
Which keywords characterize this thesis?
The core keywords include Global Account Management, Strategic Management, T-Mobile, Siemens, Industry Value Chain, and Competitive Strategy.
How does the author define the difference between a "Key Account" and a "Global Account"?
The author distinguishes them based on geographical and organizational complexity, noting that a global account requires a centrally coordinated purchasing process and must be of strategic importance to the supplier's corporate objectives across multiple countries.
What is the significance of the "One Company" approach mentioned in the study?
It refers to T-Mobile's internal strategy to align all national carriers under one set of purchasing requirements and one technology architecture, which significantly dictates the sales approach of their suppliers like Siemens.
How does the shift in market paradigm affect the relationship between Siemens and T-Mobile?
The shift from vertically integrated, full-service suppliers to a "best-in-breed" approach requires Siemens to prove its value in specific technology areas rather than just offering a bundled portfolio, forcing a change in the global account team's sales strategy.
- Quote paper
- Daniel Weber (Author), 2006, Developing a sales strategy for the 'T-Mobile International' account in the Siemens Mobile Network business unit, Munich, GRIN Verlag, https://www.grin.com/document/61931
