...9-705-475 R E V: APR I L 21, 2011 P A N K AJ GH E M AWAT T H OMA S M. H O U T JO R D A N S I EG EL Haier's U.S. Refrigerator Strategy The objective of most Chinese enterprises is to export products and earn foreign currency, exploring easier markets first like Southeast Asia. . . . Our purpose is to establish a brand reputation by first penetrating difficult markets such as the United States. . . . All success relies on one thing in overseas markets—creating a localized U.S. brand instead of an imported Chinese brand. We see an opportunity to compete against established, slow moving companies there by being more customer-focused than they are. To win over those customers we have two approaches—speed and differentiation. — Zhang Ruimin, CEO Haier Group1 The Haier Group was one of China’s most accomplished and important companies, with estimated global sales in 2007 of $16 billion. Founded in 1984 as the Qingdao Refrigerator Company, the original company was a collectively owned enterprise in the same northeast coastal municipality that produced the popular Tsingtao beer. Haier became a conglomerate electrical home appliance and consumer electronic products company. Its core business was white goods—refrigerators and freezers, ranges, and microwave ovens, dishwashers, and washing machines and dryers—and room air conditioners. Later, it diversified into mobile telephones, television receivers, personal computers, and even financial services and pharmaceuticals...
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...------------------------------------------------- Haier refrigerator strategy Global operations & Information systems February 5, 2014 212631842 February 5, 2014 212631842 Introduction: Company & Goals The Haier group is one of the most accomplished and important companies of China. It is the strongest domestic brand in China as per 2005 Financial Times’ survey. In 1995 Haier entered the US market in order to earn some foreign currency, they chose to enter this difficult market to establish themselves as an US brand instead of an imported Chinese brand. The company was very effective in capturing compact size refrigerator market with a 21% market share in 2006. Haier was also able to capture 3% of the standard refrigerator market in a very small span of time. Issues Immediate Issues There are a bunch of issues that Haier needs to address immediately to move towards meeting its goal of capturing US market. The immediate issues that Haier needs to address are product selection, price positioning, sourcing location and distribution strategy. In order to capture a major share in the US refrigerator market, Haier needs to decide which product segment in the standard refrigerator market it should focus on? There are typically three product segments in the standard refrigerator market, namely Premium (growing at 16.3%), Middle (declining at a rate of 19%) and economy (growing at 12.6%). Another major decision Haier needs to make is about the trade-off between...
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...Case Analysis On Haier – Management Control on a Tactical Level INTRODUCTION * Haier Group is China's largest white goods manufacturer and one of the world's fastest growing white goods companies. * The company started out as a nearly bankrupt refrigerator plant in Qingdao, China, equipped with a group of low skilled and undisciplined workers, low productivity, inferior product quality and a loss making business. * Its current CEO, Zhang Ruimin, first took over the company in 1984 and established corporate rules and culture, revamped business strategy and set up an incentive-based management control system. All of these transformed Haier into a global player in less than 2 decades. * This case study examines the establishment of Haier's management control system and how it was adapted into the company's internationalization strategies, how it motivated employees to reach high performance goals and how it structured the business units to obtain optimal operational efficiency. SWOT ANALYSIS Strengths * Haier enjoy a well-known brand name and high reputation for reliable quality and first-rate customer service. * Its strength also lies in its innovation in both production and management practice. * Haier was ranked fourth among the global white goods manufacturers in 2004. * The Group successfully carried out product diversification to expand its brand beyond refrigerators, adding washing machines, air conditioners, and other items to...
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...INDEX |Contents |Page Numbers | | | | |EXECUTIVE SUMMARY |2 – 4 | |CERTIFICATE FROM MIMA | | |CERTIFICATE FROM COMPANY | | |ACKNOWLEDGEMENT |5 | |COMPANY PROFILE |6 – 10 | |INDUSTRY PROFILE |11 - 16 | |RESEARCH PROBLEM AND ITS BACKGROUND |17 – 19 | |OBJECTIVES, HYPOTHESIS AND SCOPE |20 – 22 | |RESEARCH METHODOLOGY ...
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...CHAPTER I INTRODUCTION Haier Group is the world’s 4th largest white goods manufacturer. It was founded in 1984 with the headquarter in Qingdao, Shandong Province, PRC. Under the leadership of Chairman and Chief Executive Officer (CEO) - Mr. Zhang Ruimin, Haier manufacturers home appliances in over 15100 varieties of different specifications under 96 categories. There have over 100 countries that selling Haier products around the globe. According to the Haier Group official website, Haier now has over 240 subsidiaries companies, over 110 design centers, plants and trading companies and over 50,000 employees throughout the world. Besides doing home appliances business, Haier’s also focused on technology research, manufacturing, trade and financial services. Eventually, the global revenue of Haier for 2005 was RMB 103.4 billion. 1.1 Ownership of The Company According to Financial times, as far as transforming moments in a CEO’s Career, Mr. Zhang Ruimin is the chairman of the Board of Directors and CEO of Haier Group. Mr. Zhang’s current goal is to further enhance Haier’s leadership in Chinese and global markets and strengthen the reputation of Haier’s brand worldwide. In 1984, Zhang Ruimin was appointed as the director of the Qingdao Refrigerator Factory, a small, ailing collectively-owned factory in the Shandong province of China. Under his leadership and unique management philosophy, the company has since grown to become the Haier Group as now to be the China...
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...After successfully breaking the stereotype of “made in China” in the 90’s and establishing itself in the overseas market as a quality brand, Haier decided to venture into India in 2004 owing to the potential market share it could amass. T.K. Banerjee, appointed as president of the Indian operations, set out to acquire 20% of the white goods market over a 5 year period and to place Haier in the top three companies in the industry in 7 years. However, these targets were far from being reached after the specified time period. The key issue was that the estimated growth had not been achieved. And according to the case, there were numerous aspects that seemed to have contributed to it. Firstly, the market was already crammed. Production facilities were constantly being added, but the demand hadn’t caught up to the supply. Secondly, the tax structure was such that it added to the cost of the products, resulting in higher prices and hampering industry growth. Thirdly, the escalating price wars kept the profit margins to a minimum. Big players, such as LG and Samsung, were keeping prices low to retain their market share while hardly making a profit. Lastly, sub-standard infrastructure contributed to making much of the rural market inaccessible. Poor condition of the roads and the delayed execution of rural electrification programmes contributed to holding up potential market demand. Besides the above mentioned reasons, there are three other aspects that the writer has failed...
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...Jimmy and Kevin Contents 1) What is Haier Group 2) History of Haier Group 3) Product and Culture of Haier 4) Strategies of Haier 5) Questionnaire What is Haier Group Haier Group is a Chinese multinational consumer electronics and home appliances company headquartered in Qingdao, Shandong, People's Republic of China. Its products include air conditioners, mobile phones, computers, microwave ovens, washing machines, refrigerators, and televisions. In 2011 the Haier brand had the world's largest market share in white goods, with 7.8 per cent. Haier group is the world's fourth largest home appliance manufacturers, a Chinese brand with most value. Haier have been to 30 countries to establish the localization design center, production base and trading company, the global total employees are more than 50’000 people, It has become a large-scale multinational enterprise group, Haier group in 2007 has achieved turnover RMB 118 billion. In August 2005, Haier was awarded by Britain's financial times "China top ten world-class brand". In 2006, in the Asian Wall Street journal organization selection "Asia top 200 enterprises", Haier group for the fourth year in a row on the "mainland China enterprise comprehensive leadership" charts. Haier has become a world-class brand ranks, its influence is with global market expansion and rapid rise. History of Haier Group The origins of Haier date are back long before the actual founding of the company...
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...A Profile of Haier Group Founded in 1984, the Haier Group has been dedicated to innovation and creating a world famous brand over the past 26 years. Originally a small collective plant on the verge of bankruptcy, it has now grown into an international group which has more than 70,000 employees around the globe and realizes a turnover of 135.7 billion yuan in 2010. Haier has risen to be the world's No.1 brand of consumer appliances. In addition, it was selected as one of the world's Top 10 innovative companies issued by USA Newsweek's website. Haier aims to create a world famous brand in the age of the Internet, which features satisfying the personalized needs of users in a short time. What such a business needs is large-scale customization rather than massive production. Taking this opportunity provided by the Internet, Haier addressed this challenge and actively explored and practiced the "Win-win Mode of Individual-Goal Combination". Through "Inverted Triangle" organizational innovation and "End to End" ZZJYT construction, it realized the transformation from "selling products" to "selling services" and fostered differentiated and sustainable competitive advantages. Trend-leading R&D advantages ---- The Haier's patent applications total over 10,000- ranking first among Chinese home appliance firms. Haier takes the lead to make breakthroughs in international standards. It participated in the drafting of 51 international standards, 27 of which have been issued and implemented...
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...THE IMPACT OF GLOBALIZATION ON HAIER Name: Institution: Date of submission: THE IMPACT OF GLOBALIZATION ON HAIER Introduction People across the world have been interacting with other cultures in numerous ways, many of them for economic reasons. Integrating the insights of the past, one could envisage that it was difficult initially for people to communicate and do business together. However, these obstacles still subsist even in today in international business. Despite that, our world has become undoubtedly smaller in the last decades, cultural and geographical contexts still take place in shaping different societies and their methods of relations. The term globalization is the method of international incorporation arising from the exchange of worldviews, products, ideas, and other aspects of culture. There are several factors generating interdependence of economic and cultural activities which include telecommunications and transport infrastructure. Most recently, due to the industrial revolution and innovation in the transportation and communication, the units of international interaction resulted into multinational corporations who were finding materials, labor, and clients outside their own. It can be realized that multinational corporations are agents of globalization. Haier Group Company has10 industrial parks world wide and 22 other plants overseas and has been impacted by the global world. The reality of this branches from the fact that it has many subsidiaries...
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...An Assessment Study (A Strategy Paper) on (for) HOME APPLIANCES & CONSUMER ELECTRONICS / WHITE GOODS Submitted by: Teofilo, Reymark P. 2009104355 As partial fulfillment of the requirements of EMG166 – Section T Strategic Planning & Management 3 Quarter SY 2014 – 2015 EXECUTIVE SUMMARY Haier in the Philippines are Corporation that the Filipinos embraced. It is a Home Appliances that gives comfort to the people that offers quality products. It is value for money, where normal people are looking for not like other competitors usually focuses only on their products. Haier is a corporation that brings life to your home. The corporation is still new to the market so it will be the focus of the strategy. Since the corporation is young compared to its competitors but they are different among their competitors having a variety of Home Appliance aside from having electronic gadgets. They aim to satisfy the needs and wants of their consumers that make them different among their competitors. Haier faces challenges and problems on how to penetrate since they only have one branch. They lack promotion that can help them to gain consumers and have the share in the market. With the help of the strategic plan one of the ways on how Haier will grow the market is that their marketing efforts should widened and strengthened. Along with the plan is the changing of the structure for the organization and marketing strategies to make their mark and to innovate...
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...Haier Case Study 1. Discuss the primary reasons why Haier moves from a single and dominant business strategy to a diversified strategy. The single and dominant business strategy, which denote relatively low levels of diversification, more fully diversified firms are classified into related and unrelated categories. A firm is related through its diversification when there are several links between its business units; for example, units may share products or services, technologies, or distribution channels. The more links among businesses, the more constrained is the relatedness of diversification. Unrelateness refers to the absence of direct links between businesses. 참고 : http://wenku.baidu.com/view/6a080e260722192e4536f624 2. A.Describe how Haier uses activity sharing and the transfer of core competencies to create value. (related diversification strategy) Haier uses both related and unrelated diversification strategies. Haier catapulted in the last two decades producing consumer products that are sold in similar fashion. They all shared distribution channels, outbound logistics, and sales forces. Haier was able to develop core competencies through effective activity sharing of primary activities resulting in a superb competitive advantage, ultimately creating value. CEO Zhang Ruimin realized that using both strategies’ can work in Haier’s favor with the ultimate goal of getting name recognition globally. His related diversification strategy used both operational...
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...The Haier Group: U.S. EXPANSION I. Current Situation A. Current Performance * Organized into 6 Divisions: a. Haier China b. Haier Europe c. Haier America d. Haier Middle East e. Haier Spain f. Haier New Zealand * Top 100 Most recognized Worldwide Brand Name * 20 Year Old Company from China Produce Home Electrical Appliances * 18 Design Centers * 10 Industrial Parks * 30 Overseas factories and manufacturing bases * 58,800 Sales offices * 96 Product Group Categories To include : Refigeratorswashing Machines, Air Conditioners, Cell ph ones, TV’s * 2004 Global Sales $12 Billion * 4th in Global Sales revenue for White goods in 2004 * 21% Market Share China overall Appliances * 34% Market Share China Major Home appliances * 14% Market Share China small electronic appliances B. Strategic Posture 1. Mission To improve the quality of life, focusing on customers' needs 2. Objective Haier strives to create innovative and affordable quality products, to deliver sincere, delightful and caring services, in order to satisfy different customers 3. Strategies Three Stage Growth Plan * Brand Name Strategy * 7 years built strong brand name in Refrigerator products thru Total Quality control System * Products known for quality and innovation * Diversified Development Strategy * 6 years to diversify product catalogue * By 2004 13,000 products in 86 categories * Going...
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...INTRO: AN OLD CHAMPION PROBING INTO THE FUTURE In this group assignment, we analyze Haier Group’s strategic position and outlook in China’s home appliances industry. By only focusing on the most up-to-date articles and resources available, we have come to the somewhat surprising realization that Haier Group is at the forefront of maturing into a networks platform and a solution provider to an ever-segmented market. While this transformation seemed only logical to any multinational corporation under the sea change brought about by the Information Age and the new paradigm spearheaded by Google and Amazon, Haier Group’s strategic response to what time has called upon them has been quite elusive and subtle. We will demonstrate how Haier Group, with so many success stories from its past, along with the cultural baggage it could evolve beyond, should adapt to the present and fulfill its future promise. PART I. Environmental scanning and industry analysis The STEEP analysis in this section will focus on the most relevant aspects with Haier Group in China: Chinese consumer’s recent socioeconomic development and technological development; the two aspects obviously have huge cultural and political ramification which we also include in the scanning. Toward the end of this section, we will demonstrate these aspects have presented both challenges as well as solutions. 1. Socio-economic facet While we focus our analysis on one single country, China, we have to point out that China...
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...dramatically. FDI accounts for $148 billion in 2009 and forecasted $300 billion in 2014. Policies like tax credits such as Real Estate Act 2010 removes the current taxes on foreign investors of commercial real estate and other investment incentives are provided to attract more foreign investors. But US- China relationship is not in a good shape due to the factors such as Yuan manipulation, import taxes, excluding foreign suppliers at certain sectors. Outlook Stable political environment and favor to foreign investments. US- China relationship may become better or not based on the leaders decisions. Impact: Haeir have to spend time and effort on understand the system and to adhere to the State government regulations and Federal regulations. Haier may not get the preferences with government process due to US-China relationship Policies for FDI: http://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?article=1675&context=auilr Economic Well developed and largest economy in the world. Moderate economic recovery from the 2008-2009 financial crises overall but obvious uncertainty remains for the future. Growth in 2011 is...
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...The reason why Haier have such great success is that their group is not satisfied with the status quo but to continuously pursue innovations.The strong source of innovation is partly from the prediction, assessment and accreditation of a new technology, which Haier get from the surrounding technological environment. Haier Group is very good at capturing the analysis of market and technology environment of the their company. Every year, company give the analysis report of external environment to clarify the tasks of scientific research that Haier Group will do in future years. In Haier's analysis report, the main factors that affect the innovation environment are the extension of market demand, the increase of contenders and the replacement of technology in white goods。 1.the extension of market demand In the wake of China's accession to WTO, the Haier Group's strategy is to open the international market. The Haier Group established overseas design division, hoping to develop different home appliances for different region consumers. 2.the increase of contenders Abroad home appliance companies like Electrolux, Siemens possess huge advantages in technology and brand. Faced with the pressure of those companies, Haier's leadership position in the Chinese household appliance industry will confront severe challenges and shocks. Therefore, Hale should focus more on development of technological innovation. the replacement of technology in white goods With the development of high-tech...
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