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Globalization of Air Conditioners - Assignment Example

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The following paper “Globalization of Air Conditioners” seeks to evaluate globalization, which has had major effect on the world economy. It has not only affected the nature of the production of good but has transformed the whole nature of the business…
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Globalization of Air Conditioners
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Download file to see previous pages The Chinese used hand fans as a coolant since time immemorial. In 1800, American engineers made an attempt to create air conditioners as they had money and resources for doing this. The 20th century saw major development in this area majorly contributed by the discovery of electricity. Willis Carrier a 25-year-old American invented the first model of air conditioning which was not designed for human comfort but was made to reduce humidity at his printing plant. It was made of a mechanical unit that cooled air through circulating it in cooling water coils. He later added a centrifugal cooler to this unit greatly reducing its size. By 1930s, air conditioners were been used in offices, department, and cars and this increased the workers' productivity during the hot summer periods. This was a major development for Carrier Corporation which grew incredibly during these years. At some point, the use of Air conditioning in the workplace was seen as an unnecessary luxury. However, evidence from several kinds of research conducted showed that the use of air conditioning during the hot summers came with increased productivity. The organization, therefore, started getting the air conditioners for their offices in order to leap off benefits (Street et al 629). The air conditioners were not very common in homes with only 10% of the American homesteads using air conditioning. The rest of Europe and eastern countries slowly started using air conditioning mostly in the workplace. Outside work people still use the traditional methods of staying cool like dipping their underwear in iceboxes. Some of the popular air conditioning companies include Carrier Corps, Daikin Industries, LG and Samsung and lastly Haier, Midea, and Gree. Carrier Corporation is the biggest layer of the market. This can be as a result of the fact that it was the pioneer in this industry and has, therefore, had a competitive advantage over the others that mushroomed after it was established. The company has established its operations in almost every part of the globe. It engages in the production of a wide varied range of products including indoor units, outdoor units, heaters of all kinds and HVAC equipment. It has several established brands such as the weathercaster, centurion, Byrant, and Payne among others. Daikin Industries is based in Japan which is responsible for the creation of the Variable Refrigerator Flow HVAC systems. This is a special kind of system that is used to supply cooling or heating to a room depending on the demand. It can also provide cooling and heating simultaneously in different parts of a building. In order to get to its current position, the company has wielded to the wind of globalization. For instance, in the year 2006, it acquired the OYL group company based in Malaysia. This expanded its scope and also increased the company’s brand giving it a stronghold in the market. Some of the brands associated with this company include the J& E hall and AAl (Ameen, 72). The acquisition has made Daikin the second largest company in the production of air condition pieces of equipment after Carrier Corporation. There are other players in this industry in Japan and they include Sanyo, Toshiba, Mitsubishi, and Panasonic. LG and Samsung are the third-largest companies in this industry both based in South Korea.  ...Download file to see next pagesRead More
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