Home Appliance Case Study

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Home Appliance Case Study

By | March 2013
Page 1 of 6
Q1. What are the Industry’s Dominant Economic Traits?

Industry’s Dominant Economic Traits|
Features| Questions to answer |
Market Size & Growth Rate| U.S is the largest producer of Home appliances in the world. U.S Home appliances industry is in the phase of Maturity. There are four major firms in Home appliances industry in United States. in 2002 there are 74.5 million units. Dollar volume had been growing at an annual average rate of 1.9 percent since.

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Scope of Competitive Rivalry|
As major home appliance industry became increasingly global it became difficult for global and domestic major home appliance companies to survive independently in the competitive environment.| Number Of Rivals| Major rivals who shared 99% of the market share were Whirlpool, General Electric, and Maytag, AB Electrolux. Others who shared 1% of the market share were Bosch-Siemens, Haier, Emerson Electric, Sub-zero, Viking and Wolf.| Buyer Needs & Requirements| Many consumers were demanding appliances that are attractive, convenient and easy to clean for that consumers are willing to pay top prices for top of the fine appliances that enhances their décor's and save precious time. The manufactures have responded to the consumer demands, by manufacture smart appliances with sophisticated electronic controls and self diagnostic features. | Pace of Technological Change| New technologies and designed were being introduced into major home appliances. Due to governmental pressure, appliance manufactures were introducing energy efficient versions of Home appliances| Degree of Product Differentiation| In US major home appliances industry firms differentiated themselves on the basis of quality and cost.

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Product Innovation| As a result of high competition and rivalry companies were always in search of innovation.  Huge amounts were being spent on R&D in order to replace current technologies with more efficient one. For example use of microwave...

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