Samsung010620BJ-HaierWhiteGoodsCompetitorAssessment–HaierSamsungElectronicsChina(SECChina)August,2001CONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.Samsung010620BJ-Haier2CONTENTS1.Backgroundinformation•Location•Startingyear•IPOdate•Numberofemployees•Brandvalue•Marketshare•Salesrevenue•Equitystructure•Eraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocuson•Marketing,advertisingandpromotion•Distribution(channelandsalesforce)•Organizationstructure•Sales•Profit2.Strategy3.Product/market•Corporatestrategy•Keyproductofferings•Marketposition•Keycustomers•Valueproposition•Geographicfocus•PricingSamsung010620BJ-Haier3CONTENTS1.Backgroundinformation•Location•Startingyear•IPOdate•Numberofemployees•Brandvalue•Marketshare•Salesrevenue•Equitystructure•Eraanalysis4.Valuechainstrategy5.Organizationandownership6.FinancialperformanceFocuson•Marketing,advertisingandpromotion•Distribution(channelandsalesforce)•Organizationstructure•Sales•Profit2.Strategy3.Product/market•Corporatestrategy•Keyproductofferings•Marketposition•Keycustomers•Valueproposition•Geographicfocus•PricingSamsung010620BJ-Haier4BACKGROUNDINFORMATIONSource:Annualreport;analystreports;website;YuegangInformationDailyLocation:QingdaoStartingyear:1984IPOdate:ListedrefrigeratorbusinessinNovember,1993Brandvalue(2000):~RMB30billionMarketshare:Refrigerator:31%;Washingmachine:29%;AirConditioner:20%;Microwave:2%Numberofemployees:30,000Equitystructure:KeyshareholdersPercentageHaierGroupHaierElectronicInternationalCo,.Ltd31.44%17.93%SalesRevenue(2000):RMB40.6billionSamsung010620BJ-Haier5HAIER'sDEVELOPMENTWENTTHROUGHTHREESTAGESSource:Haier'swebsite,literaturesearchBrandingDiversificationandexpansionGlobalization198...