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Haier’s History
Qingdao Fridge Factory
A deficit of 1.47 million rapidly
One type of product
Less than 800 factory workers
Haier's Status Quo
One of the biggest white goods company
42 types of specifications for more than 8600 varieties of brand-name products group
More than 20,000 workers
Industry Analysis
White Goods Industry
Industry Definition
Being used to reduce the
burden of endless
housework and improve the
quality of people’s life
Six product categories
The importance of white
goods in people’s daily life.
Global Issue
Global market
Europe
Asia-Pacific
United States
Other Regions
Global Value Chain
Future Trends
Diversity of market players
The market will be divided into more different
categories as consumers require more functional
products.
Technology will play an even more important role in
innovation of products.
Strength Large number of sales outlet 30 franchised stores & 5500 sales
points
unique corporate culture, qualified employees, core technology, excellent after-sale service system
High reputation at home and abroad
SWOT Analysis
WeaknessDifficult to adapt to the international market -
little efficient breakthrough among international competitors
Relatively low input, low output & low efficiency
More attention on traditional electrical products
SWOT Analysis
OpportunityEconomic globalization - “go out”
Foresee future changes in external environment - enough time to prepare
Core technology
China’s access to WTO - easier to enter global market
Domestic and foreign business partners
SWOT Analysis
ThreatDeficient funds – lack of power & less competitive
“Energy saving” “environment protecting” “green”
Traditional mode of thinking
Stronger competitors
SWOT Analysis
Current Global Market Analysis
Achievements
the fourth largest white goods
producer in the world
operates in over 30 countries
with employees over 50,000
products are sold in more than
160 countries in global
Had a global turnover of ¥118
billion (about $16.2 billion
dollars) in 2007
Technology & Product Innovation
Once relied on technology from
German companies
has made technology innovation
as its main task and pay millions
dollars in R&D of new high-tech
products
The technology achievements are
soon transferred into advanced
products
Organizational Restructuring
“1000-day information
management innovation”
Important Issue: a lack of focus
improve the effectiveness and
efficiency
Global Marketing Strategy
United States
EuropeJapan
The difficult matters should be dealt with before easy
ones in the progress of Haier’s globalization
Brand Building Strategy
pays much attention of its advertising and
public relations in order to build up a deep-
in-mind brand image in global market
NBA
Olympic
Charity
Challenges and Risks from Global Market
Haier has not become a real global
corporation yet
the portion of overseas sales is relatively
low
Chinese products are considered to
be cheep but of poor quality in
global market
Competitors
1. Whirlpool Corporation
2. Electrolux
3. Matsushita (Panasonic)
4. Siemens
5. General Electric
Whirlpool Corporation
Haier Whirlpool
good quality innovation and responsibility
appliance platen washing machineBACK
Total Avenue of producing appliance is $19billion in 2007
Total Avenue of producing appliance is $19billion 2006.
After acquiring the Maytag Whirlpool Corporation became the largest home appliance maker in the world
Electrolux
BACK
total revenue is $104,billion 2007
Stockholm, Sweden
main Strength products are floor cleaners,
In 2002, Electrolux launches the Robot Vacuum Cleaner
produce the first talking washing machine in India
Matsushita (Panasonic)
BACK
Total revenue is $8.62 billion in the year ended March 2008
Main business are electronics which contains 7 categories
such as Televisions, Video, Phones and Audio and so on
Weakness-home appliance
Strength-electronics e.g. Video, Cameras
another part of conducts e.g. cell phone
Siemens
BACK
Total revenue is 110.82 billion in 2008
Berlin and Munich, Germany
Main Business include Industry , Healthy and Energy.
Main Home appliance such as Refrigerator ,wash dryer and so on
The other common products such as Cell phone part, computers and Real Estate
long history , innovative design and high technology
General Electric
Go on
Fairfield Connecticut Net income is $4,312 million The top three companies in the world in September 2008 GE will sell the appliance business in the price of 5-8 billion in 2008
Haier is preparing to bid , but there has three problem 1, total revenue $1.62 billion in 2007 2, government e.g., Maytag in June 2005 3, market and ‘made in China’
Recommendations
Short-term
DetailsConsumer
serviceInnovation
Long-term
Own overseas sales channels and networks
LocalizationOverseas R&D
Conclusion
Success
advanced technology
successful management
consistent innovation and restructure
Effort for future
strong competitors
lack of strong competitive capacity
own strategy
Question Time
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