SWOT analysis of Haier India Ltd

Haier India Limited a subsidiary of Haier Group entered the India market in 2004. The company
since then has been struggling to gather momentum in the India Consumer Electronics market.
The Indian consumer electronics market is estimated to be $5 billion and is growing. Haier group
has failed to leverage this growth. Even though the Company is among the top ten global
electronics companies but Its innovation is yet not appreciated in India. The SWOT analysis of
Haier India Ltd is mentioned below.

Here is the SWOT analysis of Haier

 Haier’s  strategy has been that of a start up firm. It never tried to cash in on its MNC
appeal. As a result the spending on Brand Building and Marketing have been minimal.
 The Company has been trying to build up its Distribution Network So as to reach tier 1,2
and 3 cities.
 As a new entrant to the Indian market, It has practiced Penetration Pricing. Hence, its
focus has been on price wars with competition. As a result a Push strategy has been
prevalent in Supply Chain Process. Haier has been following Economy Pricing Strategy
with minimum marketing expense.
 The company has been emphasizing on Logistics and Supply Chain to tackle Bull Whip
Effect.
 SAP enabled Data Warehousing for Efficient Business Analytics and Interpretation.
 Diversification of the distribution Network to support the entire Product Portfolio.
 Focus on Hi–End Products as they are Profit yielding. Setting up of HEC’s to specifically
cater to HI-END product.

Strengths

 High end products are well accepted.

 Good market share in western India
 Strong presence in home appliances segment
 Big distributors are stocking many of Haier’s product

Weakness

 Very weak distribution network in central India
 Weak service agent network
 Weak logistics as a result accumulation of trade stocks and aging stocks
 Sales seasonality in specific segment hindering growth.

Opportunities

 North-east a potential market is still largely untapped
  Mobiles and cellular phone market offers new growth opportunities.
 SPIN(Situation, Problem, Implication, Need) selling strategy for HEC’s
 Consumer electronics segment is booming and set to grow at 14% CAGR, Haier’s produc
t offerings catering to this segment are limited
 Small appliance market set to grow.
 Tie up with big retailers will help in growth
 High disposable income and higher number of Nuclear Families in the  society.

Threats

 Medical Freezers are not selling.
 Product portfolio is weak.
 Overall weak distribution network compared to competitors.
 Only selected products are selling from the entire Product Portfolio.