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PR-Report CPCN, Consulting Project China Service Business Concept and Marketing Strategy for ABB Engineering (Shanghai) Ltd. «Cultural Synergy leads to success.» nominated University of Applied Sciences of Eastern Switzerland www.fhsg.ch/praxisprojekte

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P R - R e p o r t C P C N , C o n s u l t i n g P r o j e c t C h i n a

S e r v i c e B u s i n e s s C o n c e p t a n d M a r k e t i n g S t r a t e g y f o r A B B E n g i n e e r i n g ( S h a n g h a i ) L t d .

«Cultural Synergy leads to success.»

nominated

University of Applied Sciences of Eastern Switzerland

www.fhsg.ch/praxisprojekte

Human Resources Distribution Channel

MarketingProduct

Customer

Customer segmentation

Service representatives

Service Centres

Establish new service types

Adjust existing service portfolio

Front-End-Sales-Structure

Proactive approach

One face to the customer

Employer Branding

Qi Wang, ABB Engineering

The consulting team has developed deep insight knowledge of ABB service business and Chinese market conditions. The project was conducted

with excellent methodology and thorough execution. Results were made available to ABB in a comprehensive report. ABB con-gratulates the team for their results and expresses gratitude to them.

Coaches: Mathias Kleiner, MBA, FHS St.Gallen Prof. Ming Yao, Tongji University

This team has been pheno-menal and combined all the key success factors: team spirit, sensitivity for intercultural differences, solution oriented thinking, flexibility and eagerness to learn. Due to their high level of commitment to this project, they presen-ted a mature and well

balanced service business concept to the client.

ABB Engineering (Shanghai) Ltd.ABB Engineering (Shanghai) Ltd., founded in 1999, is a wholly owned enterprise of ABB having 1,150 employees. It is one of ABB’s key local enterprises and a major manufacturing and engineering base for industrial robots and systems, instrumenta-tion and analytical systems and substation automation systems. ABB Engineering (Shanghai) Ltd. is well established in the Chinese market as one of the ten local companies ranked among China’s top 100 electric enterprises.

ResultsThe project team identified all relevant market players, described them and showed their influence on the excitation system market in China. Furthermore, the team conducted a customer satisfaction analysis regarding the service of ABB and its competitors. Furthermore, research about mature markets such as Switzerland and Canada and other branches was car-ried out. For the consolidated findings, the adaptability to the Chinese market has been shown. On the basis of these aspects, the team developed a mid and long term

strategy for ABB’s service business. Besides, the team calculated that the market poten-tial for services with the inclusion of the 12th 5-year plan of China, achieved pene-tration of the mature markets and expec-ted intensity of competitive rivalry.

Assignment and AimsIn 2011, ABB Engineering (Shanghai) Ltd. plans to start a strategy process to develop a service business concept and marketing strategy. This consulting project supports this process with an in-depth analysis of the Chinese service market in the power plants environment.

ProceedingTo achieve the goals, comprehensive re-search was necessary. The project team conducted customers and experts in the field of excitation systems and from another branch in China, Switzerland and Canada. Additionally, the team did extensive desk research to complete the results. Subsequently, the students fo-cused on the analysis of the gathered information and assembled all results into a final report.

Project TeamZhimin (Jamie) Xie / Tongij University, China / Project Leader Min (Cherry) Zhang / Tongij University, China Hong Jing / Tongij University, China Mario Malzacher, Neuhaus / FHS St.Gallen, Switzerland Julia Wüthrich, Heiden / FHS St.Gallen, Switzerland Philipp Heim, St.Gallen / FHS St.Gallen, Switzerland

ClientABB Engineering (Shanghai) Ltd., Shanghai Qi Wang / Service Manager for Excitation Systemwww.abb.com.cn

ProspectsABB has a good initial position and excel-lent reputation in the market. When the company meets the challenge of local com-petitors and adjusts the service portfolio to the sales approach, the project team is convinced that ABB Engineering (Shanghai) Ltd. will be able to expand its service busi-ness for excitation systems significantly.