2. COMPANY INTRODUCATIONLeading
Manufacturer
NO.1 white-goods
manufacturer in China.
leading refrigerator
manufacturer
worldwide
Haier is well know for
the manufacturing of
electronic and home
appliances
Millions of people use
Haier
Wide International
Coverage
240 subsidiaries,
66 trading companies,
24 manufacturing plants,
5 R&D centers,
24 industrial parks
Founded in Qingdao
Port city in Shandong Province
1984 . 34 year ago
Founder and CEO
Zhang Ruimin
3. s w
O T
Strengths
• High quality products
& good after-sales
service
• Flexible organizational
structure
• Distribution Networks
• Customer Orientation
Opportunities
• Higher consumption
power in emerging
market.
• Technological progress
especially in developed
market
• Government support
for companies to go
international
Weaknesses
• Perception of Chinese
brand (stereotype)
• Lower production
capabilities abroad
• Higher Production
costs abroad
Threats
• Domestic &
International
Competitors
4. Strengths.
Haier has one of the world’s largest market share in white goods
Among the top 20 most trusted brands in India with strong advertising
Haier is a leader in China in volume terms in the major appliances
market
It is growing its international reach also and has growing retail
footprint
Over 80,000 people are employed with Haier
Acquisition of other companies & brands have further
strengthened Haier's market position
5. Weaknesses.
Haier is dependent on China, which can be great weakness
of this company.
The huge number of volume sales of its products is reported
in China.
Haier Company reliant heavily on the government subsidies
in china, which can be harmful for the company.
The cost structure of the products of this company is on the
higher side.
The company is facing the problem of bad acquisition for its
products.
6. Higher consumption power in emerging markets: South
America, India, Indonesia, Malaysia, Thailand
Technological progress especially in developed market
Government support for companies to go international
Development of Rural Area
The affordable rates of the products can help the company
to enhance the sale of its products.
Haier has great and wide product range, which have great
price segment.
7. Threats
There is increase in wages of the employees in China and the
margin of profit on the products can be enhanced.
There is possible decrease in the sale of major appliances, which
are spending in China.
The local players in the electronic field can affect the business of
Haier Group
Flat growth in mature markets
(e.g.: US and Europe)
Strong competition among other company can disturb the sales
8.
9. Political Factors
China is a growing economy. The government therefore is keen interested in to
make flourish its growing industries.
The state set several rules and regulations that affect the electronics industry.
The government sets different policies regarding taxes, business establishment,
import, export, excise duties and also about employment.
Haier being operating in the largely populated country has to follow the rules
and regulation of China.
Moreover, it operates in other countries too so the rules of those countries
should also be focused while expanding business.
Frequent problems like political conflicts may increase the complexity and
difficulty in developing the company according to the procedures and policies
10. Economic Factors
Haier operates globally. So the economic development level of selected countries is very
important.
The income of the customers is a key factor as they have to use their resources to buy the
used home appliances products.
By observing these, economic policies needed to be designed to decide the price to be
charge from the customers.
One of the significant factors, which will expand the company, is the economic stability. It
allows achieving the benefits and improves the quality according to the customer
preferences.
The competitive advantage will increase and makes the company more famous for foreign
and domestic markets.
Different approach will result in the global expansion and allows the company to achieve
benefits at industrial scale.
Haier must choose entry modes and internationalization strategy wisely.
11. Socio culture Factors:
These all of the social factors have a combined effect on Haier operations
to enter in the electronics industry. Therefore all should be deeply
analyzed.
Population growth, age distribution,
Size of family, social behaviors,
Consumer lifestyles, education,
Religion, and immigration
The strategy must focus on the brand awareness, meeting consumers,
Recognition of brand which will increase the market shares.
12. Technological Factors
The enterprise will be able to develop significantly if it remains engaged in technical research.
Haier produces electronics products for daily use, so technical production of advance level of
products are very important.
Today customers demand convenient in performing daily tasks like washing clothes. So Haier
needs to produce advanced technological products at competitive prices.
Modern production techniques can help to manufacture the products speedily at low cost.
Better and improved fact conditions will increase the product demand, especially in foreign
countries.
Moreover to promote by designing high-value advertisement strategies is also important so
that customers can get better information and can approach the companies easily.
There is a direct link with the success factors, capabilities and the technological resources to
avail the competitive advantage.
If the technological resources of company will cooperate successfully, then the organization
will achieve success and face less pressure on technological improvement.
13. Legal Factors
Companies have to follow and observe the global regulations and rules.
The global business environment includes patents, ideas, trademarks and legal
designs.
Patents and copyrights help the company to secure its product from the competitors
to copy them.
This will decrease the profits ultimately. Haier should focus on this.
Moreover, business legislations are also included in legal factors Haier should analyze.
It is best to consider legal factors for the dramatic expansion of the company to
international markets.
14. Environmental Factors
Analysis of environmental factors highlights the power of buyers and
consumers.
Selection of countries to be served is very important. To know the
environmental rules and laws set by the authorities are significant to operate
smoothly and profitably.
Moreover producing environment-friendly products are also demanded by the
customers to reduce the pollution from the environment.
In addition to this, the waste disposing of is also an issue to environment. Haier
needs to pay attention to all factors.
The environmental cycle of consumers is short which directly affects the supply
chain management. The environmental factors have their limitations.
It is essential for the company to recognize the global environmental trends in
society.
The company will achieve success and enable to build a competitive position.
However, production facilities mainly depend on the environmental factors.
