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

Weakness Difficult 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

Opportunity Economic 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

Threat Deficient 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 Europe Japan 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 Whirlpool Corporation 2. Electrolux Electrolux 3. Matsushita (Panasonic) Matsushita (Panasonic) 4. Siemens Siemens 5. General Electric General Electric

Whirlpool Corporation HaierWhirlpool good qualityinnovation and responsibility applianceplaten washing machine BACK Total Avenue of producing appliance is $19billion in 2007 Total Avenue of producing appliance is $19billion 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 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 , government e.g., Maytag in June , market and ‘made in China’

Recommendations Short-term Details Consumer service Innovation Long-term Own overseas sales channels and networks Localization Overseas R&D

Conclusion Success  advanced technology  successful management  consistent innovation and restructure Effort for future  strong competitors  lack of strong competitive capacity  own strategy

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