格力競(jìng)爭(zhēng)力分析-波特競(jìng)爭(zhēng)力模型-英文版

1、Competitiveness of Gree Air ConditioningFounded in 1994, Zhuhai Gree Electrical Appliance Co., Ltd. is the largest professional air conditioning enterprise in the world, which integrates R&D, production, sales and service. As a large electrical manufacturer focusing on air-conditioning products,

2、 Gree Electric has been committing to providing leading technology and excellent quality air-conditioning products for global consumers. Although Gree is excellent in the air-conditioning industry, it is still facing huge competitiveness. Then, I amgoing to use Porter's Five Forces Model to anal

3、yze the competitiveness of Gree Air Conditioning.Porter's Five Competitiveness Analysis Models are widely used in many industries to formulate strategies. Porter believes that in any industry, whether domestic or international, whether providing products or services, the rules of competition are

4、 included in Five Competitive Forces. These five kinds of competition can be seen among enterprises, entry of potential new competitors, development of potential substitutes, bargaining power of suppliers and bargaining power of buyers.The fivekinds of competitive forces determine the profitability

5、and level of enterprises.First of all, competition of existing enterprises in the industry. Competition amongenterprises is the most important one of the five forces. Only those strategies which are more advantageous than competitors' strategies can be successful. For this reason, the companymus

6、t establish its core competitive advantage in market, price, quality, output, function, service, R&Dand so on. The major competitors faced by Gree air conditioning are Media, Haier and Haixin. Media air conditioning is comparable to Gree in technology and quality, while it is better than Gree in

7、 market and service. Haier's influence and brand popularity in the world can not be underestimated, and its service has been highly appraised by consumers, but its diversification strategy makes its technology inconspicuous. Hisense has been focusing on frequency conversion technology, which ens

8、ures the stability of its air conditioning in use.However, Gree, which has been insisting on specialized operation, has become the most complete and varied air-conditioning manufacturer in China, forming the leading advantage in the industry. Gree has continuously increased its investment in scienti

9、fic research departments and built the largest professional air conditioning research and development center in China with 357 patents, leading the technological level by a long way.Secondly, the threat of new entrants. Enterprises must be vigilant enough to new market entrants, their existence will

10、 make enterprises respond accordingly, which inevitably requires companies to invest appropriate resources. But there is no need for Gree to worry about it. Gree not only deters potential competitors by leading technology and scientific channel management, but also builds strong entry barriers for a

11、ir-conditioning industry by implementing the total cost leadership strategy, expanding production scale, forming scale benefits and reducing costs. Therefore, the threat of new entrants is negligible.Thirdly, the development of potential substitutes. In many industries, companies compete directly or

12、 indirectly with companies that produce alternatives in other industries. The existence of substitutes sets a ceiling on the price of products. Whenthe price of products exceeds this ceiling, users will turn to other substitutes. So in the course of the development of Gree, Gree is also constantly c

13、ompeting with alternatives. The substitutes of air conditioning industry are basically new technologies and new functions, such as air filtration, sterilization, silence and other functions, and the substitution of cabinet air conditioning and central air conditioning for hanging air conditioning.Wi

14、th its technological leading edge, Gree insists on continuously completing product updating and upgrading, and product quality is leading in the industry. Up to now, it has developed 20 categories, 400 series and more than 7000 varieties and specifications. Brand specifications and product series ra

15、nk first in the country.Next, the bargaining power of suppliers. The bargaining power of suppliers will affect the competitiveness of the industry, especially when the monopoly of suppliers is relatively high, the replacement of raw materials is relatively small, or the conversion cost of other raw

16、materials isrelatively high. As a specialized air conditioning production enterprise, Gree has the R&D and production capacity of compressors, and has established its own compressor factory. This is the strategic integration of upstream resources, thus gaining industrial competitive advantage.Si

17、nce 2001, Gree has drastically increased the adjustment of raw material procurement procedures and operation links, insisting firmly on " Quality wins by comparing goods with goods ", and strengthening the monitoring of raw material procurement links.Through fair and fair online biddingand

18、 other measures, a number of raw material suppliers that do not meet the requirements of enterprises are excluded, which ensures that the raw materials of Gree Air Conditioning are always low in price and high in quality.Lastly, the bargaining power of buyers.When users are concentrated,large-scale

19、or masspurchasing, their bargaining power will becomea major factor affecting the competitiveness of the industry. Although the customer concentration of Gree is relatively low, it still has strong bargaining power due to the oversupplied products.At present, the mainrequirements of customers for ai

20、r conditioning are energy efficiency ratio, quietness, price, quality, after-sales service, technology and environmental protection. With the development of air conditioning, customers will have more demand, consequently Gree is facing great challenges.The success of Gree is inseparable from its dif

21、ferentiation strategy.Differentiation strategy is to differentiate products or services. According to Porter's theory, the essence of enterprise strategy is to form market-accepted competitive advantage through differentiation. Differentiation strategy can successfully establish defensive positions to deal with five competit