Haier taking a chinese company global
The Chinese white goods manufacturer did everything right in those markets by focusing on niche products and establishing themselves as the new go to manufacturer for innovative designs and the thinking out of the box approach to doing business.
In my opinion, the two pronged approached Mr. I agree that the decision to move into France, Germany, England, the U. The local authorities appointed a young Zhang Ruimin to oversee its turnaround.
Meeting these needs will be as much a challenge they are a necessity.
Haier case study harvard pdf
The single and dominant business strategy, which denote relatively low levels of diversification, more fully diversified firms are classified into related and unrelated categories. The giant manufacturing company whose products include air conditioners, mobile phones, computers, microwave ovens, washing machines, refrigerators, and televisions saw the light as the money- losing Qingdao Refrigerator Factory. They all shared distribution channels, outbound logistics, and sales forces. It was also ranked 86th among the world's Most Influential Brands by World Brand Lab in and is the only Chinese brand to be among the top for three consecutive years. Developing the quality is the only way to having a continuous development in this market which is full of competition. Add to this mix the established and proven European products from companies like the Swedish Electrolux and the German Siemens and we have a very crowded, very competitive arena. Haier put too much of a weight on the prestige gained from being associated with Europeans and American markets which does not necessarily guaranty success in penetrating southeast Asian markets or African markets like India and Nigeria. I agree that the decision to move into France, Germany, England, the U. Quality is the precondition of creating the brand of a company. The local authorities appointed a young Zhang Ruimin to oversee its turnaround. The higher margins that exist in the high-end market comprising full-size refrigerators and washing machines would be a welcome change from the price wars of mainland China, the western markets also offer easy access to the more developed capital markets, and the potential of larger gains thanks to the exchange rate. Haier has subsidiary companies and 30 design centers, plants and trade companies and more than 50, employees throughout the world. The same would apply to Haier flawed approach of getting into the easy markets where they will be in fact the foreigners and where they do lack the key insights and right connections. Haier came out with new and innovative products that fulfilled to the demanding needs of the rural customers as well as products that satisfied the unique requirements of the urbanites. Zhang Ruimin, the second step in his strategy was to cater to the needs of their customer base.
So, the company should focus on the development of quality. It was also ranked 86th among the world's Most Influential Brands by World Brand Lab in and is the only Chinese brand to be among the top for three consecutive years.
Zhang champion was a wise one and might prove to be successful in the future, but the order in which he champion going into the developed and the underdeveloped markets was wrong.
Once the Chinese market cornered and future gains were to come at higher expenses, Haier Group sought to expand overseas. The Japanese and Korean manufacturers where starting to make headwind and were pushing recognizable brand names also like LG electronics, Samsung, Matsushita, and Sony.
Zhang Ruimin, the second step in his strategy was to cater to the needs of their customer base.
based on 17 review