Strength in the SWOT Analysis of Haier focuses on Strength, weakness, opportunities and threats. Strength and Weakness are internal factors and opportunities and threats are external factors.
SWOT Analysis of Haier helps the company to analyze its performance in the market. Haier Group was established in the year 1984 at Qindao Chia. Haier is rated as 2nd Largest Home Appliance Company.
Haier has 70000 Employees all over the world. It has 14330 outlets. Haier has five Research and Development centres and has its offices & production units in 24 Industrial parks. Haier is known for its corporate culture.
Haier has diversified businesses i.e. home appliances, network appliances, and integrated circuits and digital products. Haier has 7000 patents and 589 intellectual property rights.
Haier India Limited is 100% subsidiary of Haier Group. Haier India was established in the year 2004. Since its inception the company has been trying to maintain its brand name in the consumer electronics industry in India. It is estimated that the Indian consumer electronics market is $6 billion and is rising. The Haier Group is striving to take advantage of this growth.
Although the company ranks among the top ten global electronics firms, India still does not appreciate its innovation. SWOT Analysis of Haier India is analyzed in this article.
Strength in the SWOT Analysis of Haier – Haier SWOT Analysis
- Haier Refrigerators and Washing Machines are more Popular among Indian Customers.
- Haier has always focused on the Customer Support, Product Quality and Research and Development.
- Haier has about 7000 Patents and 589 IPC.
- In order to hit Tier 1 , 2 and 3 locations, the organization has attempted to build up its distribution network.
- Haier has introduced Penetration Pricing as a new entrant to the Indian market. Hence, its focus has been on competitive price wars. As a consequence, in the supply chain phase, a push strategy has been prevalent. Haier adopted the Economic Pricing Approach of minimum marketing costs.
- The organization has stressed the Bull Whip Effect on the logistics and supply chain to fix it. Data Warehousing for efficient business analytics and analysis has been done by SAP.
- Distribution network diversification to sustain the entire Product Line.
- Strengths High-end items are embraced well.
- In western India, strong market share.
- The significant presence within the category of home appliances.
- Many of Haier’s goods are stocked by major distributors.
- Haier has a strong social media presence.
- Haier is selling its products through E-commerce Portals like Amazon and Flipkart.
- Offers on Haier products are also good.
Weakness in the SWOT Analysis of Haier – Haier SWOT Analysis
- Quite poor Central India distribution network. Network with poor service agents as a result of the accumulation of industrial stocks and ageing stocks, poor logistics Seasonality of sales in particular segments prevents growth.
- A potential market in the north-east is still largely untapped.
- Retailer Support is less and Margins to retailers are also less.
Opportunities in the SWOT Analysis of Haier – Haier SWOT Analysis
- The demand for mobile and cellular phones provides new opportunities for growth. The market of consumer electronics is booming and is set to rise at 14% CAGR. This shows a good opportunity for Haier.
- Haier’s product offerings for this segment are restricted The demand for small appliances is expected to increase.
- Increasing Trends of Purchase on E-Commerce Stores like Flipkart, Snapdeal and Amazon are opening up new opportunities for the company.
- Company can tap rural markets where pricing matter.
- Company can also increase its reach and recall through aggressive promotional and advertising strategy.
- Tying up with major retailers will lead to growth Strong disposable incomes in society and higher numbers of nuclear families.
Threats in the SWOT Analysis of Haier – Haier SWOT Analysis
- The Medical Freezer segment of Haier has less sales as compared to other products in the brand portfolio.
- Competitors like LG, Samsung, Panasonic, Whirlpool, etc are also a major threat to the company.
- Company’s offering more margin to retailers this can prove to be a major threat.
- Government Policies for FDI and electronic appliance industry can directly influence the company.
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