Global Home Appliances Industry Dynamics on Dominant Strategic Groups

Group 1 (Whirlpool, GE, Electrolux) 

 

·         Threats of new entrants: Low 

Plants and Facilities require heavy investments

·         Rivalry among existing firms: High

Competition in terms of innovation, customer-oriented features 

·         Threat of Substitute Products or Services: Low

There are substitutes available; but they are not much effective on this industry.

·         Bargaining Power of Buyers: High

Buyers prefer well-known brands to be placed in their stores

·         Bargaining Power of Suppliers: Low

Since the companies are market leaders; any of the suppliers will love to supply these companies.

Group 2 (Maytag)

·         Threats of new entrants: Low

Fierce Competition 

·         Rivalry among existing firms: High

They have been competing for years 

·         Threat of Substitute Products or Services: Low

The presence of substitutes is not highly affective.

·         Bargaining Power of Buyers: High

Buyers are more interested in purchasing well- known brands.

·         Bargaining Power of Suppliers: Low

Since the companies have been in this industry for years they have options.

Group 3 (Siemens, Haier)

·         Threats of new entrants: Low

They have enough and specialized resources. 

·         Rivalry among existing firms: Medium

They are global competitors.

·         Threat of Substitute Products or Services: Low

There is not much affect as far as substitute products are concerned.

·         Bargaining Power of Buyers: High

Buyers are brand-conscious. 

·         Bargaining Power of Suppliers: High

Suppliers can dictate their terms and conditions.

 

Group 4 (Sub-Zero Freezer, Viking Range)

·         Threats of new entrants: High

The new entrants can capture part of the market share. 

·         Rivalry among existing firms: Low

They don’t have a competitive edge over market leaders but they are competing with each others.

·         Threat of Substitute Products or Services: Low

There is not much affect as far as substitute products are concerned.

·         Bargaining Power of Buyers: High

Buyers are brand-conscious. 

·         Bargaining Power of Suppliers: High

Suppliers can dictate terms and conditions.