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 brandname 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.
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
 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
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 Haier’s 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.
2.
3.
4.
5.
Whirlpool Corporation
Electrolux
Matsushita (Panasonic)
Siemens
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
another part of conducts
e.g. Video, Cameras
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
 Innovation
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
Question Time