Home Appliance Industry in 2002
Industry Dominant Traits of US Major Home Appliances
Market size & Growth rate
73.3 million Home appliances market and 2.6 million commercial major appliance makes up market size and this industry is expected to grow at about 1.9 % annually.
Number of rivals
Major rivals who shared 99% of the market share were Whirlpool, General Electric, and Maytag, AB Electrolux. Others who shared 1% of the market share were Bosch-Siemens, Haier, Emerson Electric, Sub-zero, Viking and Wolf.
Scope of competitive rivalry
As major home appliance industry became increasingly global it became difficult for global and domestic major home appliance companies to survive independently in the competitive environment.
Buyer needs and requirements
National chain stores and mass merchandisers – they only sold the most well-known and private brands. Department stores, furniture stores, and discount stores – pressure on manufacturers to sell in large quantity and at low price. Builders – they were cost conscious, they liked to buy at the middle to low end of well known appliance brand. The basic requirements thus were cost savings, product improvement, environmentally safe products, and SMART appliances with increasing sophisticated electronic control and diagnostics features.
Degree of product differentiation
In US major home appliances industry firms differentiated themselves on the basis of quality and cost.
Product & Process Design (Innovation)
Due to highly competitive environment and rivalry, companies were in continuous search of some type of innovation in order to gain an edge. Huge amounts were being spent on research & development to replace current technologies and design for increase efficiency and effectiveness, with customer-oriented features. For example use of microwave energy in clothes dryers so that clothes could be dried faster, at low temperature and less energy use than the conventional dryers. This technology was not marketed as it needed
Market size & Growth rate
73.3 million Home appliances market and 2.6 million commercial major appliance makes up market size and this industry is expected to grow at about 1.9 % annually.
Number of rivals
Major rivals who shared 99% of the market share were Whirlpool, General Electric, and Maytag, AB Electrolux. Others who shared 1% of the market share were Bosch-Siemens, Haier, Emerson Electric, Sub-zero, Viking and Wolf.
Scope of competitive rivalry
As major home appliance industry became increasingly global it became difficult for global and domestic major home appliance companies to survive independently in the competitive environment.
Buyer needs and requirements
National chain stores and mass merchandisers – they only sold the most well-known and private brands. Department stores, furniture stores, and discount stores – pressure on manufacturers to sell in large quantity and at low price. Builders – they were cost conscious, they liked to buy at the middle to low end of well known appliance brand. The basic requirements thus were cost savings, product improvement, environmentally safe products, and SMART appliances with increasing sophisticated electronic control and diagnostics features.
Degree of product differentiation
In US major home appliances industry firms differentiated themselves on the basis of quality and cost.
Product & Process Design (Innovation)
Due to highly competitive environment and rivalry, companies were in continuous search of some type of innovation in order to gain an edge. Huge amounts were being spent on research & development to replace current technologies and design for increase efficiency and effectiveness, with customer-oriented features. For example use of microwave energy in clothes dryers so that clothes could be dried faster, at low temperature and less energy use than the conventional dryers. This technology was not marketed as it needed