Company G is a well-established and highly regarded company within the electronics market. We have recently developed a line of small appliances that have done very well through concept and prototype testing. In-depth testing has shown Company G that our new products might turn out to be the most reliable line of products currently in the small-appliance industry. Company G prides itself on being able to say that we have designed an efficient production process that will allow us to waste very little raw materials while turning out a quality, dependable product. We also can confidently say that through market research, both our brand and logo are easily recognized by most electronics consumers in a positive regard.…
All the white goods manufacturers are engaged in severe competitive rivalry, hence this point is especially true for Haier. Threat of competitiors is hence very high. Haier cannot take its position in the market for granted. The margins are tight and the competition is intense in this market. Haier also faces intense competition for market share as characterised by the “Cola wars”(Rivalry between coke and Pepsi) in emerging markets like India. Here, Haier has to contend and compete with a multitude of players, global and domestic. This has made the impact of this dimension especially strong for Haier.…
Louisville, KY-based GE Appliance is an attractive acquisition target for Haier. As the US market continues to be brand driven, Quingdao Haier (and Haier America) is looking at its best chance to move full steam into the US market. Haier has showed initial success moving into niche areas of the US market through compact refrigerators and air-conditioners. The acquisition of GE Appliance, a 101-year old titan in the U.S. white goods industry will fulfill Haier CEO Zhang Ruimin’s belief that “All success relies on one thing in overseas markets—creating a localized brand name. We have to make Americans feel that Haier is a localized U.S. brand instead of an imported Chinese brand.…
In 1985, Zhang Ruimin asked his employees to destroyed 76 refrigerator by hammers. This action awaked the employees who had no ideas about Haier's goal, Haier would no longer produce substandard products.. Also this action founded Haier's culture, to be an outstanding brand. After that day in 1985, Haier with its outstanding performance management system to survive in China's market even the global market.…
In 1992, Besides refrigerators, Haier expanded into freezer and air conditioner manufacturing and became ‘Haier Group’.…
3. Can Haier build on its success in niche products to become a dominant global brand in white products?…
As long as Haier try to adapt their product into the current objective market, such as the water test in the washing machines, fridge temperature, and voltage, they can gain customer recognition and satisfaction. However, in order to introduce Haier products into high-end white goods can be relatively difficult because there are still many big local companies that has the trend design and are more recognized by the people in the society. Well, starting from a unique niche product is a very…
North America was the most profitable Regon for home appliance sales, in which Haier only had a 3% market share. The acquisition of Maytag, with 15% of the market, would have substantially increased Haier 's North American share through the existing brand. Haier could have used their higher global presence and experience to bring the Maytag brand to new markets.…
As the largest domestic products manufacturer in the world, Electrolux has about 70000 employees all around the world in about 150 countries, making 14 billion euros in sales in 2005. However, an acquisition case from its main competitor, Whirlpool, is challenging the first place of Electrolux, at the time Electrolux has just decided to divest its outdoor division. A huge decrease in sales in the following years is expected. Starting from 1920s, Electrolux has been famous for its expertise in industrial design on products such as vacuum cleaner and refrigeration. The products quickly got popular not only in its home country in Sweden, but in other western countries such as Germany, France, USA and UK, due to the homogeneous culture of these countries. A major growth in demand after World War II contributed a lot to its growth. With a large amount of accumulated cash of the past decades, Electrolux decided to expand quickly through a number of acquisitions for more market share and diversification. In late 20th century, Electrolux discovered new markets in developing countries when the market in western countries was already very mature and was even showing a sign of going down. It also went through a phase of restructuring the segmentations of products as well as abandoned some less important activities. Up until 2006, the company has addressed its new strategies mainly on functional level to correspond to the challenges. To maximize the profit, the production would be outsourced to developing countries with lower labor costs. More efficient logistics has made the globalization more feasible and cost-saving. On the product market level, due to the market polarization, a more distinguishing product segmentation would be applied. While keeping the basic low-price products, Electrolux is launching a series of products with higher prices to satisfy the high-end market. On the other hand, 2% of…
Many small and mid-sized companies find appliances appealing because they don’t have the in-house IT…
Before we address the problem, we should take a review of what strategies have made Haier such a success. Haier insisted on its high quality products sold at a premium while others are pursuing low price. This strategy is applicable in both China and overseas and has gained Haier great brand reputation. Haier’s process, as stated in the case, is to observe and digest first, and then imitate and finally it can understand and design independently. Also, its differentiation strategy helped the company a lot in success. It once focused on a separate position which is mini machines overseas and resulted in a success. This can be compared to the Honda case illustrated in class when this company first got into America. Haier is an expert at acquisition as well. It knows how to acquire companies with good products but bad management and apply its own managing skills which can turn the company to profitable very quickly. Other crucial factors contribute to Haier’s success include its sufficient customer services and strategy of setting up multinational brand abroad instead of simply exporting in China. These not only boost Haier’s profit but also gain Haier good reputation.…
Introduction Bosch und Siemens Hausgeräte (BSHG) is an international company, which manages large portfolio of brands of home appliances. Majority of them are regional and national brands, but there are 4 major brands with international presence – Bosch, Siemens, Neff, and Gaggenau. BSHG belongs to the most successful producers on the market. Its long-termstrategy is based on technical and technological improvements and on multi-brand strategy, which targets different groups of consumers with different brands and through them different products. Two major traditional German producers Siemens AG and Robert Bosch GmbH have founded the company in 1967 as a joint venture, each of them owning 50% share in the company. At that time the company had three production locations in Germany, producing 3 brands of home appliances – Bosch, Siemens and Constructa. Majority of the business was focused on its home market with some export activities around Europe and total yearly turnover of 0,51 Billion Euro. Since then, the company has gone a long way in development, enlargement and internationalisation and it become one of the leading world manufacturers of home appliances. The international expansion of the company has started in 1976 with its entry into Greek home appliances company Pitsos, which included an acquisition of the production site in Greece. In 1982, BSH took over a German competition brand Neff. In 1988, BSH expanded to the Spanish market by acquiring a local producer Balay and gained three local brands Balay, LYNX and Superset at once. The last decade of the 20th century was the time of a major international expansion of the company. In 1990 BSH had 13 manufacturing sites in 3 countries in which home appliances of 5 brands were produced and yearly turnover of 3,3…
The company transformed itself from a maker of cheap home appliances and private label products to one of the world's leading premium electronics brands renowned for its cutting-edge technology. Premium products remain one of the fastest growing areas for LG Electronics. Product leadership drove revenue growth across every division in 2007 and in home appliance sector, revenues increased by 31%. The growth is a result of a focus on consumers and delivering products that are innovative and stylish…
In terms of distribution networks and worldwide sales, LG stands highest in the consumer electronics industry. Being a good control over the white goods market, LG has the highest market share in the home appliances. The company’s desire to create a happier, better life has always surrounded its history. It has unveiled many new products, applied new technology in the form of mobile devices and digital television in the 21st century and continues to reinforce its status as a global company.…
As a national enterprise with great competence, Gome adheres to the business philosophy of Smart Profit but quick turnover, service comes first. Relying on accurate market positioning and innovative business strategies, Gome leads the trend of appliances consuming. In addition, Gome wins popularity among Chinese consumers of all ages by providing consumers with…