Discussion essay on Midea Electronics

Write a 14 page essay on Midea Electronics.

Midea attained RMB8 billion revenue for

fiscal year 1999 and has set a sales objective of RMB38.6 billion by year 2005.

Although Midea has a leading position in air conditioner exports from China and

shown a continuous growth in domestic and international market yet with globalization

and rapidly changing business scenario,

Midea is facing a number of challenges both in

domestic and international market. As for major appliances manufacturers are concerned,

Asia, and in particular China seems to be with the most potential growth market and

hence they are aggressively investing in Chinese domestic market. Almost all major

appliances manufacturers are present in the Chinese market either by setting their

manufacturing facilities or by establishing the off shore base centers. Compared to these

major players, Midea lacks its presence in international market with its brand name and it

has to solely rely on its importers brand name. It does not have a well defined global

marketing strategy and a more geographical diversified presence with better marketing

skills and dedicated international sales and distribution networks.

Also major international players like LG (with 74% revenue from international

market), Samsung Electronic (66%), Mitsubishi (51% by 2001), Fedders (50%), Carrier

(48%) and Sharp and Whirlpool (each with 46%) have immense financial resources with

latest technology and state-of-the-art innovation research centers while Midea only

generates 10% of its revenue from international market and has limited financial

resources, with traditional technology.

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