Economincs for Managers

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the way of Haier group’s brand globalization
Developing Strategic Intent

TABLE OF CONTENTS

Introduction & Background
Haier’s Culture
Industry Analysis

SWOT Analysis
* Strength
* Weakness
* Opportunity
* Threat
* Development Strategies (SO, ST, WO, & WT)
PEST Analysis
* Political
* Economic
* Socio-cultural
* Technological
Porter’s 5 Forces
* Threats of New Entrants
* Bargaining Power of Suppliers
* Bargaining Power of Consumers
* Rivalry among Existing Competitors
* Threat of Substitutes
Haier Group’s brand globalisation strategies

Conclusions

Recommendations
* Quality
* Technology
* Service
* Advertising

Reference

Introduction
“Any company fails to plan, that company plans to fail”. In order for a company to accomplish growth through its operation, they must develop strategies which intents long-term growth. Introducing Haier Company, it is the world’s 4th largest white goods manufacturer and most valuable brand company in China (Haier, 2013). It was founded by Zhang Ruimin in 1984, which was the 6th year of Chinese Reform and Openingup policy released. Haier had experienced the development stages, noted as Brand Building, Diversification, Internationalization, and Global brand building (Haier, 2013). Currently, Haier caters to the needs of personalized production and executes its Networking strategy (Haier, 2013). It is their vision and mission to be the leader in the industry and users’ first choice, as well as the first competitive solution provider for good life.

This report will focus on the branding strategies of Haier Company. The purpose of this report is to apply relevant recommendations that can help improve company growth. However, carrying out an analysis of the Haier Group strategic position will help accomplish the purpose of this report. Three analysis tools will be used; SWOT analysis, Pest analysis and Porters five forces to review the company’s strategic position. In addition, company issue will be identified in order to apply appropriate recommendation in order for Haier to successfully operate locally and globally regarding company brand.

Branding Background
In 1985, a customer brought a faulty refrigerator to the factory. Mr. Ruimin and the customer went through all the company’s available stock of refrigerators until they finally found 76 were not working (WIPO, 2012). In response, Mr. Ruimin ordered workers to destroy the 76 refrigerators with sledgehammers. Mr. Ruimin is reported to have told the workers: ‘Destroy them! If we pass these 76 refrigerators for sale, we will be continuing a mistake that has all but bankrupted our company.” (WIPO, 2012). This event proved to customers that Mr. Ruimin and the company is loyal to its customer in providing the best quality of their products (WIPO, 2012). This merged quality products to a strong brand name which essential to the company’s survival. Company’s reputation increased, the name change to Haier created a new brand synonymous with quality cuttingedge technology raises customer confidence. Developing new products backed by intellectual property rights (IPRs) such as patents ensured that the brand’s success would continue and maintain a competitive edge (WIPO, 2012).

Culture of Haier
According to Haier, customers are their main assets, they try their best to meet customers’ requirements, and creating various varieties for users. Haier constantly improve themselves in order to constantly rebuff challenges and transcend themselves to achieve the new innovated products they make. Haier inspires each employee to have his own entrepreneurial skills to develop so that each employees is managed into individual management and becomes the CEO of their own. They establishes an individual goal with and making a contract with users from being managed to independent management....
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