Group 9 Haier
HAIER: TAKING A
CHINESE COMPANY
GLOBAL
Group: 9
Hunny Agarwal
(102)
Hakim Datawala
(115)
G. H. Krishna
(118)
Sushant Mondal
(137)
Abhishek Parekh
(142)
Anirban Sengupta
(150)
Haier Group: Highlights
Number one company by Asian
Wall Street Journal
China’s largest Home Appliance
Manufacturer
Largest Player in the compact refrigerator market worldwide
Brand “Haier” is recognized worldwide Haier Group: Challenges
Declining Profit Margins; from
9.4% to 2.6%
Overcapacity of white goods in
Chinese Markets
Defending its market share in
China
Increasing its global presence to generate $1 billion sales to US
• Operational Restructuring started in all companies. All companies made into profit centers.
• Development centers envisioned- Capital Flow (Finance), Commerce Flow (Sales), Material Flow (Logistics),
Overseas (Global Operations)
• Acquisition of Yellow Mountain Electronics
• 15 companies had been acquired
1998
1997
• Took over ailing Red Star washing machine company for RMB 132 million in debt and aced the Washing Machine 1995
Market
• Listing on Shangai Stock Exchange for refrigerator division. (Dilution of 43.7% stake)
• Company renamed to “Haier Group”
• Took over 500 acres of Quindao land for industrial park at cost of RMB 51 million
• Overcame issues of oversupply
• Takeover of Quindao Air Conditioner Factory and Quindao General Freezer Factory
• Gold Medal for Quality in Refrigerators and establishment as a premium brand
• Crossed the threshold of RMB 1 million
• Haier started by taking over ailing Refrigerator Plant
• Entered into JV with German company ‘Liebherr’
1993
1992
1991
1988
1985
1984
Haier Timeline
Differentiating Competitive Strategy of
Haier
Haier gains competitive advantage by the adoption of a “strategy of diversification”. The company strives to be a leader by using innovative solutions in terms of technical specification and in design and creativity.
Haier is different from most other Chinese manufacturers, whose aim
CHINESE COMPANY
GLOBAL
Group: 9
Hunny Agarwal
(102)
Hakim Datawala
(115)
G. H. Krishna
(118)
Sushant Mondal
(137)
Abhishek Parekh
(142)
Anirban Sengupta
(150)
Haier Group: Highlights
Number one company by Asian
Wall Street Journal
China’s largest Home Appliance
Manufacturer
Largest Player in the compact refrigerator market worldwide
Brand “Haier” is recognized worldwide Haier Group: Challenges
Declining Profit Margins; from
9.4% to 2.6%
Overcapacity of white goods in
Chinese Markets
Defending its market share in
China
Increasing its global presence to generate $1 billion sales to US
• Operational Restructuring started in all companies. All companies made into profit centers.
• Development centers envisioned- Capital Flow (Finance), Commerce Flow (Sales), Material Flow (Logistics),
Overseas (Global Operations)
• Acquisition of Yellow Mountain Electronics
• 15 companies had been acquired
1998
1997
• Took over ailing Red Star washing machine company for RMB 132 million in debt and aced the Washing Machine 1995
Market
• Listing on Shangai Stock Exchange for refrigerator division. (Dilution of 43.7% stake)
• Company renamed to “Haier Group”
• Took over 500 acres of Quindao land for industrial park at cost of RMB 51 million
• Overcame issues of oversupply
• Takeover of Quindao Air Conditioner Factory and Quindao General Freezer Factory
• Gold Medal for Quality in Refrigerators and establishment as a premium brand
• Crossed the threshold of RMB 1 million
• Haier started by taking over ailing Refrigerator Plant
• Entered into JV with German company ‘Liebherr’
1993
1992
1991
1988
1985
1984
Haier Timeline
Differentiating Competitive Strategy of
Haier
Haier gains competitive advantage by the adoption of a “strategy of diversification”. The company strives to be a leader by using innovative solutions in terms of technical specification and in design and creativity.
Haier is different from most other Chinese manufacturers, whose aim