The main problem in this case is the decision of buying the Maytag Corporation. The deadline regarding the offer is getting near and Qingdao Haier was still undecided whether or not to acquire the other company. Alongside with the main problem is the issue of what would Maytag bring to Qingdao in case it has made its decision to finally acquire it – whether it will be beneficial to the company or would just be a burden to the firm. Moreover, the changes that the acquisition would bring to the company such as the structure, the operations and even the policies are also the things that Qingdao should consider. All these should be evaluated in order to come up with a sound decision of Qingdao’s acquisition of Maytag.
Qingdao Haier Ltd. is a very powerful company operating for more than two decades already. With this, the company has become one of the top 50 corporations in developing countries. Its ability to manufacture appliances at a wide range is also a strength that the company has, not to mention its diversified marketing strategy. Being able to conquer even the foreign lands is a proof of how well the company is going. The strength of going in for a difficult market, just like what the company did shows how strong the company is and reaching those markets is another strength for the company since this would mean that they are able to influence more people, thus bringing in higher income to themselves. As for Maytag Corporation, its edge on advertising is a big strength for the company. The quality of their appliances is also well-known. Maytag has as well made a mark in the home appliance industry by selling their appliances on the large retailers and numerous independent distributors. Conquering the United States, the company is said to be at large in this country. Maytag Corporation can also be said as a diversified corporation when it comes to their products. They are able to compete with other companies by producing appliances that meet the needs of different people. Weaknesses The Qingdao Haier Ltd. is weak at its advertising campaigns. Though this could not be seen as much of a hindrance to the company’s success, still, it can be viewed as its weakness, as advertisements make a huge impact on everything especially when you are selling something. Another weakness that Qingdao possesses is the pricing. Qingdao prices its products lower than any other brands like Whirlpool, General Electric and Maytag. This can be viewed as a weakness since by pricing your product on a lower level; consumers can have the mentality that your product is a sub-standard one as well. On the other hand, Maytag Corporation’s main weakness is its lack of innovation. The needs of people changes as time passes by and Maytag failed to deliver these needs, unlike what the other brands did. This has caused for the decline in sales and revenues for Maytag Corporation for the past years. With this, distributors as well stopped selling the brands thus giving