Qingdao Haier, Ltd.: Considering the Maytag Acquisition Executive Summary Situation Executives at Chinese home appliance manufacturer Qingdao Haier, Ltd. (Haier) have just learned that Ripplewood Holdings placed a bid to purchase Maytag Corporation for $1.13 billion or $14/share. Maytag Corporation, the 3rd largest home appliance manufacturer in the United States, has announced that it will consider competitive offers for the acquisition of the company. Chinese home appliance manufacturer
Electrolux. The appliance industry is changing and become more competitive with the influence of Asian competitors, specifically, LG and Samsung is importing appliances into the United States. Subsequently, in January 2016, a Chinese manufacturer, Haier, bid for the purchase of General Electric Appliances, finalizing the contract, Monday, June 6, 2016 (Thompson, 2016). Whirlpool Corporation is the largest global manufacturer of home appliances (Innovation at the Pace of Life, 2016). Although, Whirlpool
appliance industry is changing rapidly and becoming more competitive with the influence of Asian competitors, specifically, LG Electronics and Samsung Electronics, who are major appliance importers. Subsequently, in January 2016, a Chinese manufacturer, Haier, bid for the purchase of General Electric Appliances, finalizing the contract on June 6, 2016 (Thompson, 2016). Whirlpool Corporation is the largest global manufacturer of home appliances (Innovation at the Pace of Life, 2016). Although, Whirlpool
appliance maker Whirlpool Corporation, headquartered in Benton Harbor, Michigan, generated over $19 billion in annual sales in 2006, an increase of 26 percent from the previous year. Key factors influencing this performance include the acquisition of the Maytag Corporation in 2006 and an increased global demand for its brands and innovative products. During the next several years, the company expects growth in Asia and Latin America to be significantly higher than in North America and Europe
The most dominant problem addressed in the case that Haier is facing is that it lacks of brand popularity in the global market, comparing to its direct competitors such as Whirlpool, GE appliances, and Electrolux. Even though Haier made its effort to amplify its brand image and popularity globally by making a bid to acquire Maytag Corporation yet did not succeed, it is still difficult for Haier to enter the high-end segment of the US white goods market. According to statistics from Euromonitor,
Haier: A Global Brand Executive Summary Haier, under the leadership of CEO Zhang Ruimin, grew from a single model refrigerator firm to the #5 white goods producer in a matter of two decades. Throughout the expansion process Haier entered over 100 countries through multiple entry modes and into other industries. The 2005 financial results gave Haier reason to pause and reassess its mission and strategic intent. The primary issue was whether to continue its expansion strategy or slow down
The Haier Group I. INTRODUCTION A. EXECUTIVE SUMMARY 1. This case analysis studies the globalization projects of one of the most successful companies in China, Haier, and a small appliance company. The case analysis focuses on Haier’s plans in the U.S. market to establish itself as a major brand. The case also gives information about the competition in the U.S. consumer appliance market and its structure, and the strategies adopted by Haier to overcome the obstacles. The problems faced
context 14 2.8 Purpose and stakeholders perspective 15 3. Recommendations (Part B) 17 4. Appendices 20 5. References 23 6. Assignment instructions 25 Summary This report provides an in-depth analysis of the strategic steps taken in Haier India using the B835 module frameworks. The analysis covers scanning the external environment, industry analysis, identifying Industry key success factors, internal analysis, the effects of the "pressures", and examining from organisational purpose
cookers and over 70% owning washers. Because of the limited growth opportunities, competition was fierce. In the United States, the industry had consolidated in the 1980s, leaving four major competitors: Whirlpool, General Electric, Electrolux, and Maytag (see Exhibit 1 for more detail). These four firms controlled about 80% of the market.3 Each firm offered a variety of products and brands segmented along price lines. Distribution of these appliances was generally through sales to builders for
they have produced large-scale domestic enterprises (native sons), which are often larger in their domestic markets than the largest multinational corporations from the United States, Japan, Europe, South Korea, Canada, and Australia. For example, Haier just surpassed the largest global appliance maker, Electrolux, in units sold, and China Mobil has more subscribers than Vodafone. Similarly, Huawei Technologies surpassed both Alcatel-Lucent and Ericsson-Nokia in telecommunications infrastructure manufacturing