Strengths:
- Wide product assortments
- Innovation Advantage
- Product customization
- Response Speed
Weaknesses:
- Is a collective owned rather than state owned company
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
- 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
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