| In the context of China’s rapid economic development, GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI, which started from a small factory, has turned into the world’s leading air-conditioning manufacturer after enduring many years of hardship. It has become the biggest air-conditioning enterprise in China since1995and the world’s largest air conditioner manufacturer since2005. Gernerally speaking, the common Chinese air conditioner manufacturers can only expand the scales of production in order to offset the sharp rise in costs due to the lack of core refrigeration technology. However, the larger their scales of production are, the lower their profit margins. Because the refrigeration and air-conditioning patents they need belong to foreign refrigeration companies, the makings and sales of their product are subject to foreign air-conditioning refrigeration giants. GREE’s development way is unique and different from other Chinese air-conditioning manufacturers’. From2001onwards, GREE has invested heavily in R&D. After years of efforts, GREE invented its patented core technologies, broke the monopoly of foreign companies in refrigeration technology and seized opportunities to expand its business successfully. Although the global economy and air-conditioning industry were in poor situation in2012, GREE once again climbed to a new peak and its operating revenue was more than RMB100billion for the first time. Facing with the current complex economic situation and fierce competition in the field, GREE should choose a new and right strategy to realize the creation of another GREE in five years, which also lays a good foundation for the vision of "A Successful GREE in Hundreds of Years".Firstly, the thesis uses PEST Analysis to analyze the macro-environment and concludes that the macro-environment is favorable to the development of air-conditioning industry after a brief introduction to GREE. Secondly, it uses Porter’s Five Forces Analysis to analyze the air-conditioning industry environment, concluding that GREE is the leading air-conditioning manufacturer in this field. Thirdly, after analysis of the internal environment in GREE, the author points out that GREE’s technologies, quality management, financial strategy and brand management are much better than other competitors. Fourthly, the paper uses SWOT Matrix to make five strategic alternatives for GREE; Based on the optimism about China’s economy in the future and the Chinese government policy that is favorable to energy-efficient and environment-friendly products, the paper draws a conclusion that GREE should implement SO development strategy to achieve its long term goals. Finally, in order to carry out the SO strategy successfully and smoothly, the paper also suggests that the following five strategic arrangements should be put into operation, as follows:1. GREE’s strategic institutional plan:to adhere to the existing shareholding structure without wavering in the future, set up a risk management committee to counter the risks it may face and make a succession planning to ensure a pipeline of management talent for GREE’s future.2. to stick to the technology-driven principle and the policy of total quality management unswervingly.3. to increase export volume and quicken the pace of international investment.4. to accelerate transformation of diversification on the basis of refrigeration specialization.5. to improve brand management and marketing channel, and to build good relationships with local governments, state-run enterprises and state-owned institutions. |
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