BSH Home Appliances: By: Finn O'Toole Luke Wilson Mohammad Saghir Hannah Morrison Nicole Saunders

BSH Home
Appliances
BY: FINN O’TOOLE
LUKE WILSON
MOHAMMAD SAGHIR
HANNAH MORRISON
NICOLE SAUNDERS
Introduction
 BSH Home Appliances Corporation is a wholly-owned subsidiary of BSH

Hausgeräte GmbH, headquartered in Munich, Germany.
 Largest manufacturer of home appliances in Europe and one of the leading
companies in the sector worldwide.
 BSH Home appliances product portfolio consisting of the 13 brands spans
the entire spectrum of modern household appliances.
 It includes everything from stoves, ovens, extractor hoods, dishwashers,
washers, dryers, refrigerators, and freezers to small appliances like vacuum
cleaners, coffee machines, electric kettles, irons, and hairdryers.
BSH Key Partners
 BSH's vision of a partnership is "to become the most valuable customer in the home appliance industry
for first-class startups"
 BSH‘s product portfolio of the 13 brands spans the entire spectrum of modern home appliances, they
have partnered with:
 BSH have also partnered with Techstars in 2018, which is a worldwide network that helped BSH
launch the “BSH Future Home Accelerator Powered by Techstars” program.

BSH Key Activities
 Key activities are those a company must engage in in order for it’s business model to work.
 Key activities are similarly pivotal in an organization fulfilling its value proposition, reaching its customer
segments, sustain its customer relationships and ultimately create long-term revenue streams.
 Production activities in BSH include design, manufacture, delivery and quality control.
 As BSH is a product driven business, a key activity in its’ business model is constant innovation in order
to increase revenue.
 In order to innovate it is essential that a key activity in the business is research and development. This can
include researching and develop new products and updating existing products.
 Marketing is another key activity used which is responsible for the growth of the company. This can
include market research, sales support and organising events and seminars.
Key Resources
 Their key resources would be their wide global presence with 42 production sites
worldwide and over 61,000 employees. Their capital would be another key
resource as in 2017 they made 13.8 Billion in revenue. This money is reinvested
into the company to be constantly expanding and developing.
 BSH Take pride in that one of their key recourses is the people that work for
them describing them as 'their greatest asset' describing thier employees to have
'Mutual respect, trusting collaboration and open dialog'. These are qualities
employees do not have in most work environments which is why BSH see their
employees as a key recourse.
Value Proposition
 Bosch who owns the BSH group is 132-year-old so are very well established and trusted with a
key focus on the environment and their employees as the basis for success.
 BSH takes pride in the fact that they act responsibly to

society and the planet. BSH plan to reduce their
energy and water consumption by 20% by 2025. In
times of consumers becoming more aware of how
their products are made this is important value
proposition.
 BSH see their outstanding technology as a value
proposition. They state that they produce products
with quality and reliability. BSH spent 4.5% of
revenue on research and development in 2017 which
is a record high.
Customer segment
 Premium products targeted at quality-conscious customers.

“Premium does not mean very expensive”. (Marc Hantscher-
MD)
 BSH has a presence across different customer segments
through its brands Bosch, Siemens, and Gaggenau, which was
recently brought to India.
 Bosch operates in the mass market segment,
 Siemens operates in a level above Bosch,
 Gaggenau targets the super-premium segment.
 BSH came up with various features across products and
categories especially focusing on the Indian customers and
their behavior patterns, such as the dishwashers with the
special Kadhai feature etc.
Customer Relationships
 BSH has high standards regarding relationships with their customers, and invested
4.5% of their revenue in research and development in order to better meet the needs of
their customers and improve their innovation levels.
 Every employee at BSH contributes to the effectiveness of the BSH quality
management system and each is personally held responsible, thus resulting in an
increased likelihood of high quality standards being passed onto the consumers.
 BSH carefully examine customer needs- innovation within BSH's products relative to
specific consumer needs through data usage results in increased ease of use due to the
specific design
 Price savings being passed onto the consumer, for example through decreased energy
consumption levels with their most energy efficient products, hence improving their
customer relationships with increased customer satisfaction.
Channels
 BSH have global transport channels, with
6,900 trucks leaving their warehouses and
transshipment points every day.
 They employ a multichannel strategy in China
in which they use e-commerce and their
partnership with Tmall in China to gain
knowledge of the market from the experienced
from Tmall and to increase their brand
awareness.
 ''It’s the goal of our multi-channel strategy to
further improve the consumer experience and
to offer more options and possibilities on all
channels. Strong partnerships are a good base
for such activities.''
 BSH also have a global, integrated supply
chain which is characterized by clearly
defined responsibilities and uniform reporting
BSH Revenue
Streams
 13 key partners associated with
BSH's revenue streams split globally,
I.e. Asia , Europe and America
 2017- (Parent company Bosch
revenue stats), 61% for mobility
solutions, 24% on consumer goods,
8% - industrial technology, energy &
building
 Revenue grown massively 2013-
2018
 E-Commerce effect on revenue
streams
Cost Structure
 BSH average wage – 17,500 – 70,000 unit manager

 BSH Home Appliances Corporation pays its employees an average of ₹808,578 a
year.
 Salaries at BSH Home Appliances Corporation range from an average of
₹381,834 to ₹1,712,260 a year.
 BSH Home Appliances Corporation employees with the job title Category
Manager make the most with an average annual salary of ₹1,558,270, while
employees with the title Customer Service Coordinator make the least with an
average annual salary of ₹304,752.
 Research and Development cost had a decrease of 353 euro in 2017.
 Capital expenditure increased by 93 in 2017.
Reference List:
 Mascarenhas, A. (November 10, 2016) BSH Household Appliances, Available at:

https://www.indiainfoline.com/article/editorial-interviews-leader-speak/gunjan-srivastava-md-ceo-bsh-
household-appliances-116111000287_1.html (Accessed: 20/2/2019).

BSH Home Appliances: By: Finn O'Toole Luke Wilson Mohammad Saghir Hannah Morrison Nicole Saunders

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BSH Home

 BSH Home Appliances Corporation is a wholly-owned subsidiary of BSH

 BSH takes pride in the fact that they act responsibly to

 Premium products targeted at quality-conscious customers.

 BSH average wage – 17,500 – 70,000 unit manager

 Mascarenhas, A. (November 10, 2016) BSH Household Appliances, Available at:

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