Haier
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- Category: Arts
- Date Submitted: 03/08/2011 11:36 AM
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The Problem Analysis
There are two alternatives for Haier Ltd, to purchase Maytag Corporation, the third-largest US home appliance manufacturer, or not. The company is interested in expanding its market position in US and worldwide. By acquiring Maytag this strategy would be consistent with the Chinese government’s encouragement of large companies turning into transnational corporations featuring a single corporate global brand name.
The purchase would probably increase the power of the Haier Company, particularly in the appliance area for the US. This would come at a significant cost to the overall corporate strategy of building the Haier brand worldwide.
Purchasing Maytag would have the following effects on Haier:
• The risk of acquiring the struggling Maytag is not fully fleshed out. The marriage of the two companies might ultimately be unsuccessful, if Haier can even make Maytag profitable.
• The Maytag brand would directly compete with Haier’s own brand and may cannibalize sales.
• The Maytag brand acquisition would do nothing to assist Haier in achieving its stated corporate objective of building successful worldwide brand.
Qingdao Haier Ltd. Analysis
Qingdao Haier Ltd. was founded in 1984. It started out as a nearly bankrupt refrigeration plant but has since become one of the top 50 transnational companies in developing countries. Haier manufactures a wide range of household appliances which are all sold with the Haier brand name. The company’s sales revenue for 2004 was $12.1 billion. They are China’s dominant household appliance company with a 30% share of the market. Their products are associated with quality, innovation and customer service. Haier has recently been recognised as China’s most valuable brand name. They are currently the world’s fifth largest household appliance company.
External analysis of Household Appliance Industry in US
Global Markets
Haier products are marketed in 160 countries throughout the world. The North...
There are two alternatives for Haier Ltd, to purchase Maytag Corporation, the third-largest US home appliance manufacturer, or not. The company is interested in expanding its market position in US and worldwide. By acquiring Maytag this strategy would be consistent with the Chinese government’s encouragement of large companies turning into transnational corporations featuring a single corporate global brand name.
The purchase would probably increase the power of the Haier Company, particularly in the appliance area for the US. This would come at a significant cost to the overall corporate strategy of building the Haier brand worldwide.
Purchasing Maytag would have the following effects on Haier:
• The risk of acquiring the struggling Maytag is not fully fleshed out. The marriage of the two companies might ultimately be unsuccessful, if Haier can even make Maytag profitable.
• The Maytag brand would directly compete with Haier’s own brand and may cannibalize sales.
• The Maytag brand acquisition would do nothing to assist Haier in achieving its stated corporate objective of building successful worldwide brand.
Qingdao Haier Ltd. Analysis
Qingdao Haier Ltd. was founded in 1984. It started out as a nearly bankrupt refrigeration plant but has since become one of the top 50 transnational companies in developing countries. Haier manufactures a wide range of household appliances which are all sold with the Haier brand name. The company’s sales revenue for 2004 was $12.1 billion. They are China’s dominant household appliance company with a 30% share of the market. Their products are associated with quality, innovation and customer service. Haier has recently been recognised as China’s most valuable brand name. They are currently the world’s fifth largest household appliance company.
External analysis of Household Appliance Industry in US
Global Markets
Haier products are marketed in 160 countries throughout the world. The North...