Detailed SWOT Analysis of Gree – A Chinese Major Appliance Manufacturer

Quick Stats on Gree

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.