Haier was just found in 1984. At the beginning stage of its business, it mainly produces household refrigerators as the core product. 20 years later, Haier has obtained the leadership position in the Chinese home appliance industry which consists about 21% of market share. More importantly, Haier has become a multinational company and has expanded its business to America and elsewhere Asia. According to sales, Haier was ranked fourth in the major home appliances industry in the world. What are the seasons behind which make Haier creates such an amazing performance for just 20 years? In the followings, it is going to discuss about the comparative competition of Haier in terms of product, manufacturing, supply chain and distribution network, sales channels, warranty and service and management system.
Haier totally has two product lines. Home appliances products are its core products which include, but not limit to, wine cellars, air conditioners, laundry products. The secondary product line is the consumer electronics such as plasma television sets, DVDs, VCDs. Each of the product lines has unique features.
The wide range home appliances offered by Haier are usually in higher quality with relative lower prices while the consumer electronics have special design on its appearance and also set in low prices. Both product lines of Haier can offer low prices because most of the products are imports from Asian manufacturing factories which involve a lower labor costs. The cost leadership strategy successfully attracts the low-end market in the United States.
Haier has an outstanding design and technician team further increases the attractiveness of the Haier’s product. The team is good at modifying and adding new features to the existing products. These modified products are attractive to the middle and high-end group. Also, the time to market of new products from Haier is much shorter than its competitors. It just