In our previous blog, we talked about the SWOT Analysis of Enel, the 73rd largest revenue-making company in the world. This time let’s dig into the SWOT Analysis of Gree.
One of the world’s largest residential air-conditioner manufacturers – Gree the Chinese company started its factory with 200 employees in 1994 to produce less than 20,000 units, but today Gree has become so large that the company got listed in the Shenzhen Stock Exchange in 1996.
One reason behind the massive success of Gree is its marketing efforts. It is proven time and time again that marketing efforts, especially digital marketing play an important factor in a company’s growth. If you are interested in learning about digital marketing – check out our Free MasterClass on Digital Marketing 101 by IIDE’s CEO and Founder, Karan Shah.
Do you want to learn about the stunning success of Gree? Well, that is exactly what we are gonna do today! In this blog, we are going to dive deep into the SWOT analysis of Gree. But before we start, let us learn a little more about the company, its overview, products, competitors, etc.
About Gree
Gree Electric Appliances Inc. of Zhuhai is a Chinese electrical appliance manufacturer headquartered in Zhuhai, Guangdong province. The company has two types of air conditioners: household and commercial air conditioners. The company also produces electric fans, water dispensers, heaters, rice cookers, air purifiers, water kettles, among other products.
Gree was established in Zhuhai, Guangdong, in 1989 under its name of Zhuhai City Haili. The company is a multinational company with 70,000+ employees and annual production of 65.5 million units. Their home appliances are created with the appropriate technology and innovations to assist families in receiving the care they require.
Founder | Zhuhai Municipal People’s Government |
---|---|
Year Founded | 1991 |
Origin | China |
No. of Employees | 70,000+ |
Company Type | Public |
Market Cap | $36.04 Billion (2021) |
Annual Revenue | Yuan 168.2 Billion (2020) |
Net Income/ Profit | Yuan 26.3 billion (2020) |
Products Of Gree
Here is a list of products the company offers: –
- Major appliances, Small appliances
- Kimbe 2 II
- G-tech
- Freair
- Verty
- Tower air cooler
- Washing Machine
- Air circulation fan
Competitors of Gree
These are some of their major competitors:
- Philips
- Gree
- Samsung
- LG
- Haier
Now that we are familiar with how the company’s history and it’s working, let’s dive right into the SWOT Analysis of Gree.
SWOT Analysis of Gree
SWOT Analysis of Gree is a basic method that can help a company examine what it does best right now and develop a successful future strategy. It exposes the areas where people are holding back or how competitors may profit.
With the growing neck-and-neck rivalry in membership warehouses, it is critical for organizations like Gree to examine the business environment.
To better understand the SWOT analysis of Gree, refer to the infographic below:
Now first let’s begin with the strengths of the company from the SWOT analysis of Gree.
Strengths of Gree
Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of Gree:
- High Margins: Gree Developers charges a high amount compared to its competitors. According to the Andrei Hagiu, Masahiro Kotosaka of GREE, Inc. case study, this has provided Gree Developers resources to not only beat competitive pressures but also to invest in research and development.
- Excellent Product Portfolio: Gree is one of the major producers of home appliances and consumer electronics, with a diverse product portfolio. Gree’s product line includes washing machines, refrigerators, air conditioners, and a variety of other items. Its portfolio includes a diverse range of products.
- Top Major Appliances Manufacturer: Gree, one of the most well-known major appliance manufacturers, is represented in the majority of large and domestic appliances.
- Production Advantage: Gree has manufacturing centres in 61 locations across the world. The factories are noted for their efficient operations and high productivity. As a result, Gree is able to readily meet market demand for its products.
- Talent Management: Gree and employee skill development. Gree performance in the capital goods industry is dependent on its human resources.
- Strong Brand Recognition: Gree products have strong brand recognition. This has allowed the corporation to demand a higher price than its competitors.
Weaknesses of Gree
Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of Gree are
- Total Revenue Stagnation: The fact that Gree’s total revenue remains stagnant is a huge flaw. Gree’s stock has fluctuated over the years, but it has remained stable at roughly Yuan 168.2 Billion in revenue. This indicates that the company is not expanding and is losing market share to rivals.
- Market Follower: Gree is known for being a market follower rather than an innovator because most of its products are extensions of existing product lines rather than anything completely innovative.
- Lack of Differentiation: The consumer electronics sector is saturated with brands that clone each other’s products, and there is nothing that can be done to differentiate between them. Gree, too, is lacking in distinctiveness.
- Dependency: The corporation is heavily reliant on the Chinese market, as well as some Asian regions. As a result, it loses market share to other brands in other countries, as well as revenue opportunities.
- Replaceable Model: Gree business model is easily replicable by competitors in the industry. To overcome these obstacles, the company name will need to develop a platform model that will allow suppliers, vendors, and end-users to work together.
- Limited Knowledge Base People: Gree has a high expense of replacing existing expertise. Few people are in charge of Gree knowledge base, and replacing them will be tough under the current circumstances.
Opportunities for Gree
Opportunities are external variables that, if taken advantage of at the correct time, can help a business expand.
- Increase the Depth of Product Portfolio: One of the potentials for Gree is to increase the depth of its product portfolio. It will be able to sell additional things to its already large consumer base.
- Emerging Markets: Gree has the opportunity to focus on developing and emerging markets, particularly in Africa and Asia. These expanding markets can assist Gree in establishing its brand in a new area, hence increasing revenue.
- Introducing Small Appliances: Gree is well recognized for its large appliances and household appliances. However, there are a number of small appliances that are not included in Gree’s product line. LG has already done this, and Gree can do the same to broaden its intended consumer base and provide additional items under its brand.
- E-commerce: There has been a new trend in the e-commerce industry, with an increase in sales. As a result, an increasing number of people are shopping online. Gree too can make profits by setting up online businesses.
- Unorganised Players: Unorganised players in the market are finding it increasingly difficult to operate due to increased government requirements. Gree may be able to expand its customer base as a result of this.
Threats to Gree
Gree also has some threats on their business from the outside. It is very important to anticipate them before one becomes a victim to them.
- Mature Markets: The United States and other Asian markets are mature markets with many brands present and well-established. As a result, establishing a presence in these areas is becoming increasingly challenging.
- Intense Competition: The severe rivalry in this industry is a big issue for Gree. As a result, rival brands are stealing market share from Gree, and revenue is stagnating. The competition will not subside in the near future. As a result, Gree must consider other income and profit-generating opportunities.
- Dropping Margins: Dropping margins pose a serious threat to Gree because they directly jeopardize the company’s expansion and survival.
- Shortage of Skilled Human Resources: Due to significant employee turnover and a growing reliance on creative solutions, the company name may experience a shortage of skilled human resources shortly.
- Saturation in Urban Markets & Stagnation in Rural Markets: This is an ongoing concern for Gree in its area. One of the causes is that product acceptance is slow in the rural market. Second, due to the wide distances and lack of infrastructure, serving rural clients is more expensive for Gree than serving urban ones.
This ends our detailed SWOT analysis of Gree. Let us conclude our learning below.
To Conclude
To survive in the practical market, Gree had to pay more attention to all of the key players, because firms from all over the world are playing the best part in the market, and most of the companies are giving goods at the lowest rates and best values to the clients.
As we know, the market condition changes as time passes by, much like a test, a reference, or a trend that shifts regularly. As a result, a company must acquire the greatest technology to gain greater market share in the present and future. With the help of digital platforms and digital marketing, the company would be able to accustom to the changing trends and gain a foothold. Being well-versed in digital marketing is a requirement for all marketing enthusiasts in today’s shifting scene, which is vital. If you want to learn more and improve your skills, check out IIDE’s 3 Month Advanced Online Digital Marketing Course.
We hope this blog on the SWOT analysis of Gree has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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