Haier
Haier: Taking a Chinese Company Global in 2011
Haier, started as a defunct refrigerator factory in Qingdao, China, was China’s largest white-goods maker before its expansion to foreign countries and was named the leading refrigerator manufacturer worldwide after expansion. Generally speaking, it is successful both in China and abroad using its unique and leading managing concepts. Haier’s CEO knows well about the company he founded and is now looking for more achievements. For its further development, the CEO decided to focus on deeper market penetration. Which lessons from either China or abroad should be applied to each other in order to maintain Haier’s leading position is a concern for its managers.
Before we address the problem, we should take a review of what strategies have made Haier such a success. Haier insisted on its high quality products sold at a premium while others are pursuing low price. This strategy is applicable in both China and overseas and has gained Haier great brand reputation. Haier’s process, as stated in the case, is to observe and digest first, and then imitate and finally it can understand and design independently. Also, its differentiation strategy helped the company a lot in success. It once focused on a separate position which is mini machines overseas and resulted in a success. This can be compared to the Honda case illustrated in class when this company first got into America. Haier is an expert at acquisition as well. It knows how to acquire companies with good products but bad management and apply its own managing skills which can turn the company to profitable very quickly. Other crucial factors contribute to Haier’s success include its sufficient customer services and strategy of setting up multinational brand abroad instead of simply exporting in China. These not only boost Haier’s profit but also gain Haier good reputation.
However, Haier seems fail to meet its CEO’s goal of “Three Thirds”. The company ended up
Haier, started as a defunct refrigerator factory in Qingdao, China, was China’s largest white-goods maker before its expansion to foreign countries and was named the leading refrigerator manufacturer worldwide after expansion. Generally speaking, it is successful both in China and abroad using its unique and leading managing concepts. Haier’s CEO knows well about the company he founded and is now looking for more achievements. For its further development, the CEO decided to focus on deeper market penetration. Which lessons from either China or abroad should be applied to each other in order to maintain Haier’s leading position is a concern for its managers.
Before we address the problem, we should take a review of what strategies have made Haier such a success. Haier insisted on its high quality products sold at a premium while others are pursuing low price. This strategy is applicable in both China and overseas and has gained Haier great brand reputation. Haier’s process, as stated in the case, is to observe and digest first, and then imitate and finally it can understand and design independently. Also, its differentiation strategy helped the company a lot in success. It once focused on a separate position which is mini machines overseas and resulted in a success. This can be compared to the Honda case illustrated in class when this company first got into America. Haier is an expert at acquisition as well. It knows how to acquire companies with good products but bad management and apply its own managing skills which can turn the company to profitable very quickly. Other crucial factors contribute to Haier’s success include its sufficient customer services and strategy of setting up multinational brand abroad instead of simply exporting in China. These not only boost Haier’s profit but also gain Haier good reputation.
However, Haier seems fail to meet its CEO’s goal of “Three Thirds”. The company ended up