SWOT Analysis
Gome Electronic Appliances has been the largest retail chain store that deals in the home electrical appliances. The company was started by Mr Wong Kwongou in the year 1987 in Beijing, China. The company focused on trading imported goods with huge margin products. The company applied novel plan of dealing directly with the manufacturers that encouraged the company to adopt a policy of low price. Gome focuses on providing the customers with a good shopping experience by building a goodwill & loyalty. The company has its corporate culture and it encourages ethical practices in the organisation. The company has earned credibility in the competitive market for its low price and low cost (mbaskool.com, 2017). The company has a policy of taking exclusive rights from the manufacturers for the selling of the products. Gome promises its customers the high-quality service and the name of the campaign of the company is “Gome service project.” The company has different policies to attract the customers like the money back guarantee, an award for complaint, mysterious shoppers and shopping from afar. The low cost and quality of service the Gome has earned a status in the country (Kwak, 2014).
It is always important for every organisation to make an analysis of the internal and external environment to identify the opportunities and threats of the company to grow in the competitive market. SWOT analysis is very important for making the analysis of both the internal and external factors. Here the SWOT analysis of Gome has been made.
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Strengths 1. Gome is the largest appliance retailers in the country of China that is owned by a private individual. 2. The company has more than 50,000 employees 3. The Ministry of Commerce of the China has selected the company as the key and strategically important enterprise in the country. 4. The financial status of the country is sound and the company is growing consistently. 5. The company has expanded its territory to nearly 850 stores |
Weaknesses 1. The disputes between the public and the founders become an issue. This affects the business strategy of the company. 2. The company has very restricted geometrical penetration in Europe. It is also playing an important role in other economies that are emerging currently. |
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Opportunities 1. The company has a great prospect of making tie-ups with other companies and expanding its business worldwide. 2. The company has adopted a better way of promoting its products and that creates branding the company (Durcikova & Fadel, 2016). |
Threats The company faces the markets that are very fluctuating. The domestic policies of the country also affect the business of the company (Caron, 2011). 2. There are many competitors of the company in the domestic market. The company faces difficulty from Taiwan and Korea those who sell cheap products. |
Discuss the consumer electronics market in your chosen country. – Market size, market leaders, market concentration, distribution & industry growth etc. Discuss briefly
The Indian market has been incredible and manufacturing industry has seen tremendous growth in the country. The country has been the global hub of the manufacturing industries. The country wants to be the fifth largest manufacturing country by 2020.
The market size of the country is very high. The manufacturing sector will reach US$ 1 trillion by 2025. The country has attracted hi-tech manufacturers like GE, Siemens, HTC, Toshiba etc. These companies are establishing manufacturing plants and enhancing the productions.
Figure1: Cumulative FDI inflows to the electronics sector
(IBEF, 2017)
Figure-2: Cumulative FDI inflows to the electronics sector( combined)
(IBEF, 2017)
The new market for Gome is India, a leading market for the most global electronics appliances suppliers. The market of India favours the retail partnerships where the chances of revenue are always high. The long-standing directions will have less impact on the sales of the company than to focus on retailing the electronics appliances.
Holitech Technology is a China-based LCD and touch screen panel manufacturers that have proposed to complete the US $ 1 billion investment in India by the end of 2017. This shows that for Gome, the similar China-based company has no difficulty in entering the market of India. Huawei is also a China-based company that has made an agreement with solution provider Flextronics Technologies of India Private Ltd. The agreement was made to manufacture the smart phone (stuff.co.nz, 2008).
SWOT Analysis of Gome Electronic Appliances
The Gome is a successful retailer and has lots of potential market in India. The company has found that the customers of the Indian market favour retail business organisation. The Indian market is very much appropriate for the retail marketing.
The company could find the most important competitive rivals are Acer Inc and Lenovo Group Ltd. These are the most important competitors in the country like India. The company will make policy called more retailers signing up.
The Gome will find the country market is very much effective for its growing economies. The low-cost strategy of Gome will be very beneficial to conduct business in the country.
The target market segment of the company in India will the young generation. India is a land of young growing populations. The inclinations for electronic appliances are more among the young people. Thus the company can launch low-cost product in the market (Highsmith, 2010).
The vast Indian market has four distinctive parts. They are called north, south, east and west. The company requires having customer contact centres at different important locations like Bangalore, Hyderabad in the south part of the country, Delhi and Chandigarh in the north part of the country.
Figure 3: Manufacturing sector in Inida
(IBEA, 2017)
The electronic market of the country of India is one of the largest markets in the world. By the end of 2020, it is expected that the electronic markets will reach to US$ 4000 billion. The annual growth of the electronic products is projected to be 24.4 % during 2012-2020. The success of the electronic market in the country is due to the development of the technologies and the competitive cost-effectiveness. The government attracts the attention of the foreign investors to invest in the market. The government has brought a favourable environment for the investment of the foreign company directly in Indi. Thus the country offers favourable environment for the growth of the electronic appliances (Heaton, 2016).
The Gome will have a new product in the market which is a developed electronic appliance. It will launch solutions for applications. These applications are like for the agriculture, automobile, healthcare & consumer goods. The company has proposed to solve the solutions to all these five sectors as these five sectors are very powerful in the country (Wilkie, et al., 2007).
The company will offer IoT solutions. IoT is Internet of Things. It will offer solutions to the customers in the field of agriculture, automobile, Healthcare & the consumer goods. The company will be successful in doing this because it manages its business in China successfully.
Market Description
The market of electronics is growing fast in India. The country has strong design base. It has more than 120 bases. The customers of Indian market expect something a product that will be used by the next generation users. The electronics products are very demanding in the Indian market. There has been a greater demand of the customers of the Indian market that will help them to control different areas like healthcare and services, agriculture, automobile and consumers’ goods. The customers of the electronics of the Indian market expect an electronics device that will help them to utilise the equipment for the health care and agricultural purposes. Thus the electronic products have greater demand in the country (Owada, 2012).
(Tiede, 2014)
The semiconductor industry of India is a demanding area of the electronics industry. The demand for electronic appliances like mobile devices, equipment of telecommunications, IT, machinery related to the industries and automobile will have the greater impact on the growth of the electronics market. The demand for the next generation equipment has been very important. Thus there has been demand for the semiconductors.
The Gome will find success in the Indian Market for several reasons. The most important strategy that will bring success to the company is its low price and low-cost strategy. The low price and low-cost strategies will help the company to grow in the Indian market. The Indian market is very vast and launching a new with good quality and low price and low costs strategies will help the company to gain commercial advantage (Duncan, 2016).
The SWOT analysis of the Gome Electronics highlights that the company has lots of exposure for the electronics products and it has gained the competitive advantage in the China market. Thus it can easily gain advantages in the Indian market. The most important support the company will get is from the government of the country. The government of the country offers good exposure to the foreign investment in the country (Anon., 2017). Thus there is a greater possibility of growth of the company in the Indian market. The company will gain competitive advantage through its low price and low-cost strategy. This will help the company to capture the Indian market.
Conclusion
The organisation requires establishing itself in global market with its new and innovative products. These products should be very different from the other market competitors. The success of the Gome Electronics Appliances in the Indian market depends upon the quality of the products that the company is retailing as the India market is very potential for the electronics business. The company easily compete with the competitors of the Indian company and other leading global companies of the world.
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