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SWOT analysis

Strengths:

  • Wide product assortments
  • Innovation Advantage
  • Product customization
  • Response Speed

Weaknesses:

  • Is a collective owned rather than state owned company

SWOT Analysis

5 Forces competition analysis

Treat of new entrants: Low

Rivalry among existing competitors: High

Threat of substitute product: High

Bargaining power of suppliers: High

Bargaining power of buyers: High

Opportunities:

  • Combing information technology with “white appliance”
  • Consumer preferences

Threats:

  • Intense competition
  • The prices of raw material

Recommendation

  • Use more technology in their products like smart refrigerator and intelligent TV.
  • form alliance with top brands in developed countries so they can share the market.
  • Continue focusing in R&D.

Introduction

Capabilities

  • Haier performance:
  • 1 = The company had been the No. 1 white-goods manufacturer in China since 2001.
  • 8 = A 75% increase in Haier’s 2010 profits was 8 times its 9% increase in revenues.
  • 28 = the rank of Haier Electronics Group, on BusinessWeek’s 2010 list of the most innovative firms.
  • CEO`s aims:
  • 1. Deeper market penetration, (rural china and abroad). 
  • 2. Increasing market share and adding product categories.
  • 3. Enter new countries 
  • 4. Reach the same leading position that its refrigerator had reached.  
  • Distribution
  • Management information system
  • Marketing
  • Research and development

Haier History

PESTEL analysis

Resources

Content

  • Physical resources
  • Human resources
  • Innovation resources
  • Reputation resources

1984: Convinced of China's demand for refrigerators

1989: China's refrigerator market faced over supply

1990: Haier set up a computerized service center in Qingdao

1991: China's leading refrigerator manufacturer

1992: Renamed Haier group

1994: Haier entered the U.S market

1995: Rapid growth of chinese economy

2000: Haier entered Europe market

2001: Joined WTO

2004: Haier become no. 1 appliance in China

Political factors: 

* Changing in government 

Economic factors:

* Chinese central government impact 

Social factors:

* Consumer preference across countries 

Technological factors:

* Distribution channels 

Environmental factors:

* Diversity in geography 

Legal factors: 

* Impact of china and WTO entry

Haier: Taking a Chinese Company Global in 2011

  • Introduction
  • Haier group history
  • Three thirds goals
  • Haier International strategies
  • Haier Strategies in Chinese market
  • Haier competitive advantage
  • Haier resources and capabilities
  • PESTEL analysis
  • SWOT analysis
  • 5 forces competition analysis
  • Recommendation

International strategies

Competitive advantage

  • Focus on difficult market first
  • Staff with locals
  • Observing competitors
  • Create design centers

Strategy in Chinese market

  • Haier has a very good brand reputation.
  • Closer to Chinese customers (design, needs)
  • Haier local knowledge and experience in logistics cost and network

Three third goals

  • Built an effective sales and marketing organization
  • Diversified its domestic products
  • Adapt to retail shifts
  • improved service and distribution
  • 1/3 Revenue from goods produced and sold in china.
  • 1/3 Revenue from goods produced in china and sold overseas.
  • 1/3 Revenue from goods produced and sold overseas. 

Belqees Alhinaai 16-0198

Maisa Alhinai 16-0260

Amjaad Alshukaili 16-0175

Maha Almahrouqi 16-0162

Asma Albalushi 16-0475

Shekha Aal Abdulsalam 14-0449

Tahani Alsiyabi 16-0362

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