Table of Contents
Executive Summary
I. Introduction of Haier 1
II. Brazil’s Macro-economy Analysis 2
1. Overview of Industry 2
III. PESTEL for the Industry Analysis 3
1. Political Factors 3
2. Economic Factors 3
3. Sociocultural Factors 4
4. Technological Factors 5
IV. Porter’s Five Force Model for the Industry Analysis 6
1. Bargaining Power of Suppliers 6
2. Bargaining Power of Buyers 6
3. Threat of New Entrants 6
4. Threat of substitutes 6
5. Rivalries 7
V. Conclusion 7
VI. Reference List 8
VII. Appendices 10
Executive Summary
This report clearly demonstrates the current and future situations of a Chinese MNC – Haier with its product, refrigerator under the assumption that Haier has already entered the white goods industry through the analytic tools PEST analysis and the Porter 5 force analysis. In PEST analysis, the general environment is to the benefit of Haier. First, in the political factor, president of Brazil published the policy of cut on the tax of electricity which made sales volume of white goods rise sharply, and the sales volume of refrigerators is ranked the second following the washing machine. Second, in the economic factor, the economic situation remains at a stable level recent year, and there is a continuously rising trend in the economic growth. At the same time, China and Brazil plans to expand the trade which can also benefit Haier. Thirdly, in the sociocultural factor, the strong domestic demand caused by growing population and narrower gap between the rich and the poor provide opportunities for investors. Finally, in the technological factors, Haier has obvious advantage in technology due to the investment regardless the cost. In Porter’s five force model, the