Haiers 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 peoples

life

Six product categories

The importance of white goods

in peoples 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.
 SWOT Analysis

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

Chinas 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
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

The difficult matters should be dealt with before easy

ones in the progress of Haiers globalization

United States
Europe
Japan
 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

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

Haier Whirlpool
good quality innovation and responsibility

appliance platen washing machine

BACK
 Electrolux

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

BACK
 Matsushita (Panasonic)

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

BACK
 Siemens

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

BACK
 General Electric

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

Go on
 Recommendations

Short-term Long-term

Details Own overseas sales

Consumer service channels and
networks
Innovation
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
Question Time