Haier is a Chinese collective multinational consumer electronics and electronics company that offers an array of modern, affordable and energy efficient appliances, electronics, air conditioners, refrigerators, televisions, among others to customers. The home appliance market is a prominent oligopoly with major players Haier, LG, Samsung, Whirlpool, extra that produce a variety of products. The following competition and BCG analysis shows various points at which Haier faces intense competition, major market opportunities and major investment opportunities.
Haier Strategy Case Study
Key Learning Outcomes
- Analyse the household appliances industry and how the five forces have affected the number one major appliances brand, as well as global rivals and the impact on industry structure, attractiveness, and profitability.
- Understand how Haier has managed to defend against intense competition from major players such LG, Samsung, Whirlpool, Midea etc. and the strategies it uses to create 'blue oceans' that are defensible, helping it capture and maintain top position.
- Analyse the various strategic business units in Haier's portfolio and assess which ones are the stars and cash cows generating the most value, or the question marks, and dogs that may need further investment or divesting to achieve a balance of the portfolio.
- To apply strategy business models and frameworks such as Porters five forces, BCG matrix etc. to real company cases.
1.0 INTRODUCTION
The home appliance and global electronics market is profitable but very competitive with sizeable major players such LG, Haier, Samsung, Whirlpool, Midea, all locked in a competitive battle producing a variety of goods like refrigerators, televisions, air conditioners, etc. Haier is the world’s largest producer of home appliances and consumer electronics with a global market share of over 10% in the home appliance market (Business Insider 2018).
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