The Study On Home Appliance Enterprises’ Competition Strategy Based On The Financial Statement Analysis

After China’s reform and opening up, home appliance enterprises have experienced from the rapid expansion to the fierce price competition, along with the homogeneity phenomenon. In recent years, home appliance industry is facing industrial structure adjustment and upgrading. The speed of the growth begins to slow down. The price competition transforms to innovation competition as well as the product and the service competition. In order to gain the competitive advantage, home appliance enterprises need to choose appropriate competitive strategy. The choice of competition strategy and implementation is dependent on the financial data, which can support the competitive strategy.This paper chooses Gree electric appliance as an analysis object, combining the traditional competitive strategy analysis and financial statement analysis. First of all, this paper uses the PEST model and Porter’s five forces to analysis the macro environment of home appliance industry. Secondly, taking Gree electric appliances and its rivals Media,Haier recent three years’financial statements as the basic research materials, using financial statement analysis tools to make a total contrastive analysis among solvency, asset operation ability, profitability and development ability. We also use the Dupont analysis to do a comprehensive financial situation analysis and summarize their financial position. Thirdly, we carry on the SWOT analysis to deduce Gree’s advantages and disadvantages, as well as opportunities and threats in the market competition. Last but not least, with the help of Gree’s financial position, its internal and external environment and the relevant competition theory, we select the best-fit competitive strategy for Gree electric appliances. We also should pay attention to the problems during the strategy implementation process.