Midea: Globalization Challenge for a Leading Chinese Home Appliance Manufacturer

The managing director and director of overseas marketing of Midea Group, China's largest air conditioner manufacturer, had concerns about the company's domestic and global competitive position. They felt the company needed to develop a strategy to defend its home market in the wake of more liberalized imports, and simultaneously, develop the resources and skills required to play in a global market where its cost advantages had been nullified because international players were also exporting from China. To do so, they needed to review the company's current international strategy and examine both branding and private label options.