1. Smarter Life. Better Planet1

2. Agenda Executive Summary Problem Statement Background Opportunity Targeted Analysis Alternatives Recommendations Integration 2 3. Problem Statement How to capitalize on existing competitive advantage to further penetrate untapped sources of demand? 3 4. Background Founded 1984 by Zhang Ruimi Sector Consumer Discretionary Sub Industry: Household Appliances 80,000 Employees (2013) Main Competitors Match.com 0% eHarmony 0% Plenty of Fish 0% Ok Cupid 0% Christain Mingle 0% Zoosk 0% 4 29 Billion in Worldwide Sales 5. Business Environment5 6. SWOT Strengths Strong brand awareness Leadership Commitment to Quality Weaknesses Minimal Share of US appliance market Competitors have stronger brand recognition Opportunities Acquire smaller companies Expand internationally Merger Untapped rural market Australian Market Threats Challenges of expanding into emerging markets Emerging competitors within the Chinese market 6 7. Financial Analysis Risk Metrics S&P Overall Risk Assessment Low Average High Volatility Low Average High Future Earnings Uncertainty Low Average High (Standard & Poor's Financial Services LLC, 2014) 7 8. AlternativesOption1 Increase Reveune Reach Larger Demographics Build sales and establish new Members Increase Market share Option2 Increase Revenue Organized Events Gain Promotions Increase Market Share 8 9. Partnership FutureOutlook The competition dynamic shifts price war into customer value creation Brand-conscious Increasing on-line purchases especially large home appliances. High Transparency of prices Relatively low prices offered online and mobile phone shopping Consumer power and importance of word of mouth 9 10. Partnership Maximize Profit Global Marketplace Slow delivery of goods Consumerism Passive customers Purposeful Brands Local (and Global) Personalize On-demand People make & share Empowered people The Old Way The New Way Collaborative Economy 10 11. Partnership Haier Potential Partners MakerBot NY based company 3D Printing Service Customization Sculpteo Shapeways 11 12. Globalization Strategy 12 13. Globalization Strategy 13 Sydney population- 4,391,674 Average(median) age 36. 1,152,548 families in Sydney. Average people per household 2.7. 14. Global Merge & Acquisition Merge with Fisher & Paykel 40% of their appliance sales come from Australia. Second largest market share in Australia at 24%. Behind leader (Electrolux @ 28%) by 4%. Haier is fifth with 5.5% market share. Poll of 2,500 Australians rated their top 5 brands in order. Merge with Euromaid Brand is 100% Australian owned and marketed. Is third largest Australian appliance brand supplier in unit sales. Sales since last year exceeded 2.2 million units, making a 30% increase. Brand Rank LG 1 Samsung 2 Fisher & Paykel 3 Miele 4 Westinghouse 5 15. Globalization Strategy Pros Help create more brand awareness and build reputation in Australia. Establish stable market in Australia. Last year Haier had 56% growth of market share in Australia (potential). Cons Lack of brand familiarity with Generation Y. Change marketing strategy to accommodate all demographics. 15 16. Recommendation 1. Increase brand recognition Expand marketing efforts Attempt to create a viral video similar to efforts by Samsung 17. Recommendations Contd 17 2. Strategic partnerships or joint ventures Help enhance brand presence Increase accessibility of Haier products globally 29.5 15.4836.3 18.769 Revenues Haier & Electrolux 44.98 * Appliance and lighting revenues only Haier AB Electrolux GE * Whirlpool 18. Important Metrics to monitor: Market Share by country/region Advertising/marketing views Increase or decrease in total sales and revenue Metrics 19. Integration Store Operation Efficiency Improve the operating profitability Superior user experience Direct Delivery to Town Reduce Distribution Layers Establish Distribution & Storage Centers Lower Inventory Transportation Cost 19 20. Vertically-Integration Increase third-party sales Expand appliance categories Vertically- Integration Deepen cooperation with suppliers Increase Profitability Turn-Key Brand Lifestyle consumer electronic Small home electric appliances Stretch Development 20 21. References "Top Appliance Makers in China, 2012." Market Share Reporter. Ed. Robert S. Lazich. 2015 ed. Detroit: Gale, 2015. Business Insights: Global. Web. 8 Apr. 2014. Haier Electronics Group Co., Ltd. . Haier Electronics Group Co., Ltd. Annual Report. EDICO Financial Press Services Limited. Standard & Poor's Financial Services LLC. (2014). Haier Electronics Group Co Ltd. Global Quantitative Stock Report. 21