1——资料资料文档.docx

1.0 Executive SummaryIn recent years, the increase in construction energy consumption, a better and more efficient way to utilize electric energy is eagerly needed. PV Direct-driven Inverter Centerifugal Chiller invented by Gree is a kind of innovative product with a new core technology in refrigeration. Meanwhile, America is the largest consumer market of air-condition in the world with near 30 % market share, triggered by the consistent economic growth and hot summer in recent years. In this light, Gree's new product is to enter American air-conditioning market for success.The highlighted parts of this report are thorough market analysis and strategies designed for Gree. It is addressed that Gree is able to enter the American market mainly because of substantial demand and increasing promotion for green brands. Moreover, the strategies are promoted based on product, price, promotion and place. To illustrate, Gree will focus on expanding the market for the middle classes from families with high income while maintaining the current market for relatively low income level, and advocate the green and environmental brand concept and culture through localized promotion strategy.The projected revenue of Gree will increase by 7%for the next three years with sales increase of 5% per annum. In addition, through the market share growth of American and customers in America, the net profit is to increase from 5% to 7% of sales in 20 X X and 20 X X .Furthermore, Gree is projected to double its market share in the next three years through continuing to promote environmentally-friendly products. For investment required for the project and projected return on investment, it is suggested that the return on investment will reach 60% from 20X X to 20X X.20xx). The wide range of products is both advantage and disadvantage of the company. This helps it to penetrate a new market by various products.Samsung is similar with LG, but the innovation leading it to a higher level. With supporting from Korean government, Samsung developed a wide range of products also. The key successful factor of central air-condition of Samsung is intelligent control and humanization design (Kim, 20xx).3.4 Organization Assets and SkillsStage of international marketingFirst launching in 1998 and setting up manufacturing bases, Gree started its international market territory from Brazil (China Business News, 20xx). Gree has expanded the magnificent territory and sales companies launched in over 100 countries and regions, more than 500 specialty stores globally. Gree entered the American market in 20xx and there is a sales subsidiary in California, US for air-conditioners (Gree, 20xx).3.4.1 Technical and production capabilitiesThere are various research and development centers organized by Gree, like technical institutes, fundamental researches, and renewable resources centers (China Business News, 20xx). Gree has extended its cooperation to the outstanding universities. Young talents occupy a comparatively large proportion, especially in the research and development apartment. Among the cooperative academies, there are not only universities which are specialized in advanced technology like HUST but also distinctive business college like Tianjin University of Commerce China (China Economic Review, 20xx).3.4.2 Supply chain managementIn order to match up the mass production, Gree prefers to keep the long-term friendly beneficial trade relationship with existing suppliers and searching for the potential partners (Gree, 20xx).Adopting the advanced high technology information systems, the inventory, production and distribution management are all organized in a responsive mechanism. Furthermore, Gree focuses on the strategic alliances with both suppliers and distributors, leading to the seamless information management (China Economic Review, 20xx).3.4.3 Market share, profit margin and cost structures第8页，共37页With the consumer number exceeding 250 million, the increasing rate for exportation comes to the top of the domestic manufacturers and the self-owned brands have accounted for more than one-third of the export amount (Gree, 20xx).Refer to the characters of the cost structure, the raw material accounts for over 58% of the total operating costs. The cost of goods sold and administration expense also constitute a large proportion of the total cost, which are 20.56% and 4.56% respectively (Gree, 20xx).3.4.4 Company profile and financial capabilityGree has dominated in the air-conditioning industry worldwide that the latest information, the total revenue reached $120,043 million, assuming the high increase rate of 19.91% (Gree, 20xx). In terms of degree of specialization, there are 11 branch companies and 5 business divisions (Gree, 20xx). Establishing over 10 manufacturing bases both home and abroad, the division of labor is dependent on the related diversification and certain business. Since the critical function is the quality management of product development, the highly educated researchers account for the main proportion of the staff.Figure3: Gree management hierarchies3.4.5 Company business philosophy and cultureGree is an enterprise that emphasizes the high quality and creative innovation (Gree, 20xx). It encourages the spirits of loyalty, friendliness, diligence and progressiveness in order to keep the promise that providing the customers with best-manufactured air-conditioners. In consideration of the concern of both individual employee and customer, Gree always persists in the high quality product and service in its integrated management.第9页，共37页3.4.6 Unethical problems in organizationGree announced the recall about 2.25 million dehumidifier products from January 20xx to June 20xx in the United States and Canada. Those products have the possibility of overheating, smoking and firing, involving more than 12 brands (Politics and Government Week, 20xx). In the process of after-sales service, Gree has also complained of "violent sales”. The most serious criticisms are about the security doubt in the installation, the illegal pricing in the installation, uncoordinated of the repairs parts etc. (Jiji, 20xx).4.0 SWOT analysisStrengths and WeaknessesThroughout Gree's recent growth process, it is not difficult to discover that Gree has put effort into international marketing for over fifteen years while firstly started its step in Brazil in 1998. For Gree, America is no longer an unfamiliar new target market but has considerable experiences in it. In order to seize the leading position in the air-conditioning industry, Gree has vigorously developed its technical and production capabilities, which particularly concentrates on innovation. Large amount of research and development inputs have enabled Gree equipped with long-term competitiveness. Different from traditional distribution, Gree takes the direct-to-consumer method, which has largely decreased the costs and widened the alternatives.Additionally, Gree applies advanced high technology information systems to improve the supply chain management. During the entire time, Gree is devoted to the improvement of quality and the application of innovation, adding its existing brand effects and sales mode, has weakened the resistance fbr Gree's inroads into the American market.However, it still faces potential weaknesses if entering into American market. Frankly speaking, Gree's new technology regarding PV product is not available fbr the first time. Quite a number of companies within the same industry have devoted to researching this technology. And also, it is explicit to find that the span of control is so wide that it would be difficult to go on communication and share information between different departments.4.1 Opportunities and ThreatsAmerica, as a major energy consumer, has released large amount of emissions. In spite of this, the features of large temperature differences indicate that Americans still call for air第10页，共37页conditioners to subsist. In fact, American consumers certainly have relatively high degree of environmental awareness. The government additionally signed some documents to limit energy consumption and carbon emissions and thus America's air conditioning market has had harsh requirement on energy efficiency. The booming real estate industry also provides a potential demand market for new technology air conditioners. America local society has established well-ordered transportation system and media promotion canal.From the analysis, the major problem of threats is caused by tariffs and anti-dumping taxes. Because of no free-trade agreement between China and America, tariffs and quotas are still relatively strict. Moreover, the expansion America's trade deficit results in a high anti-dumping tax on China's photovoltaic products. Moreover, although PV Direct-driven Inverter Centrifugal Chiller is considered a leading technology in the whole World, America has already mastered advanced solar energy technology and meanwhile some part of this technology has been applied by existing local air conditioning companies.The threats for Gree could also be constituted of competition within industry from other competitors. Besides some local brand like Trane, York and Whirlpool, some other famous brands Haier, Midea, LG and Sumsung all have stepped up their pace of innovation and have developed fixed customer loyalty. All these companies start off by researching and designing products that is more close to the local consumers. It seems quite difficult to share sales with these magnates if Gree did not reach the pinnacle of technology and management system.4.2 Implications of SWOT analysisVia the SWOT analysis, it can be totally concluded that there is more advantages than disadvantages while Gree alternatives to enter into American market. Granted that the trade between China and America and competition within industry have caused Gree in a dry tree, America is still a promising potential market in terms of its constant demand for PV products and self-contained infrastructure which could benefit transport and sales a lot. Since weaknesses and threats cannot be eliminated, Greeks comprehensive strengths prove it to have bright future.While Gree has made its determination to promoting its new product to existing market, it is supposed to necessarily draw on the experience of the past. Considering problems from multifaceted aspects and maintaining a positive attitude will help create more coping第11页，共37页approaches. In order to overcome its inherent weaknesses, in addition to continuously to enhance Gree's own value, it is worthy of promoting the communications and cooperation with host country only because that international trade cannot exist without the government's intervention. It is beneficial for Gree to focus on technology information system, including inventory, production and distribution management which can integrate the whole operating activities. And such advanced high technology information system could also be applied into Gree's management department to increase efficiency. Lastly in order to maintain the ability to innovate, Gree is supposed to keep constant research inputs. Therefore Gree is necessarily required to consider optimizing its production technology and energy saving technology, which are both included in a company's corporate social responsibility. Whatever, sustainable development could be the core culture of the whole enterprise. All its operations are supposed to take environment and innovation into account.Moreover, to increase Gree's competitiveness among the same industry, without doubt it should be equipped with high innovation capacity. Only maintaining technological development could improve Gree's competitive advantages in a long term. However, for internal growth, Gree might also concentrate on how to optimize its company structure to make up the shortage of information sharing. Establishing friendly cooperation with local suppliers and distributors could relieve its pressure coming from local government and competitors. Although in today's trade with America, many barriers still exist. Gree may actively negotiate with American government to seize more quotas via providing benefits for local development. Therefore, concerning about host country, America's trade policies in time is always necessary.InternalExternalStrength Vigorous development of technical and production capabilities Rich international marketing experience Direct sale method Well relationship with suppliers Advanced high technology information systemsWeakness Not the latest technology Potential pollution Wide span of controlOpportunity Restricted energy consumption and carbonemissions Potential demand marketSO Draw on the considerate experience of the past Input larger amount of research and development Promote the communicationsWO Keep constant research inputs Apply advanced information systems tomanagement第12页，共37页 High degree of environmental awareness Harsh requirement on energy efficiency Well-ordered transportation system Convenient media promotion canal Government support Cooperate with host country Devote to supply chain management strengthen core culture Optimize production process Focus on energy efficiency operationsThreat No free-trade agreement between China & America Strict tariffs and quotas on imports Fierce competition High anti-dumping tax on China's photovoltaicproducts Patent protection from competitorsST Be equipped with high innovation capacity Establish friendly cooperation with local suppliers and distributors Negotiate with local government via providing benefitsWT Maintain technological development Optimize company structure strengthen the information sharing Be aware of host country's trade policies intime5.0 Evaluation of Alternative Marketing StrategiesAlternative Market Entry StrategiesConsidering factors discussed as follows, it is obvious that green field investment might not be the most optimal market entry strategy for Gree. Indirect exporting and foreign direct investment can be applied by Gree to expand its U.S market. Greenfield investment. Gree can choose to establish a wholly owned subsidiary in the United State (Hitt, 20xx). Due to the risk causing by establishing business in a new country, Gree may need to acquire knowledge and expertise of the existing market by third parties, such as consultant, competitors, or business partners. This entry strategy usually takes a long time due to the need of establishing new operations, distribution networks, and the necessity to learn and implement new marketing strategies to compete with rivals in a new market. Exporting. Gree can use indirect exporting to export air-conditioners through domestically bas