Vol. 2 No. 11 [Special Issue - June 2011]
A SWOT Study of the Development Strategy of Haier Group as One of the Most Successful Chinese Enterprises Xia Chan Postgraduate Student of Business English School of English for International Business Guangdong University of Foreign Studies, Guangzhou 510420, China E-mail: email@example.com Abstract This paper puts forward a complete and comprehensive SWOT development strategy model on the basis of the previous SWOT analysis model and the case study of Haier Group. After a general review of both SWOT and Haier, this paper focuses on how Haier can make appropriate SO ST WO and WT strategies by analyzing and allocating its internal factors (strengths and weaknesses) as well as external environments (opportunities and threats). The aim is to provide an applicable Haier model which combines SWOT analysis with strategy formulation to set an example of how SWOT assists business in developing feasible strategies, and simultaneously provides an in-depth understanding of the “glocal” strategy of Haier as one of the most successful enterprises in current China.
Key words: SWOT analysis; Haier Group; development strategy model; internal factors; external environments
In today‘s hyper-competitive global market, any company should have a clear understanding about itself as well as the external conditions in order to make effective decisions and strategic corporate planning. Therefore, many economists and scholars have researched into this field and proposed some useful tools and models to help analyze and develop business strategies. SWOT analysis is one of the most well-known and frequently used models created in the 1980s. Despite its high popularity and wide application, I found that few researches have combined it with the business‘s development strategies to further work out a more integrated model to guide the business practices. In view of this, this paper attempts to set an example of how to incorporate SWOT analysis into a company or business‘s strategy-formulating process. Moreover, the reason why Haier is chosen as the analyzing subject should be explained here. Recently, it is reported that Haier was ranked 27th in the 2010 Top 50 World‘s Most Innovative Companies, becoming the first Chinese household electrical appliances firm in the list, which aroused great public interest. Actually, as the most internationally distinguished Chinese appliance brand, Haier always attracts great attention from economics and researchers. Therefore, a more comprehensive examination of Haier, especially the internal and external factors which greatly affect its strategies and contribute to its success, can hopefully offer some useful guidance for other business. Therefore, it is of great theoretical and practical significance to conduct a thorough SWOT analysis of Haier and work out an integrated model to see how SWOT can help a business to make successful strategies. The primary purpose of this paper is to provide a good framework for understanding and applying the SWOT model in real business practices and to advance such a concrete development strategy model based on the case study of Haier. The paper mainly consists of 6 parts: 1) the above introduction part which describes the background and significance of the research 2) a brief introduction of Haier 3) an overall review of the origin and the previous studies related to SWOT analysis 4) a SWOT development strategy model of Haier created by the author in accordance with the previous theories 5) the detailed SWOT analysis composing both the internal, external analyses and allocated strategy analyses to elaborate on the above model. 6) The conclusion part that draws a general summary of this paper.
2. A Glimpse of Haier
In order to better understand the following analysis, a brief and overall glimpse of Haier‘s development is presented here in this part. Haier...