Haier: Global Strategy Case Write-up
Ryan Munge
Problem statement: From the case I have identified that Haier faces a two-sided problem opposing their efforts to execute their global strategy. First, Haier’s success internationally has been to enter niche markets in developed countries in order gain a strong market share in these niches. However, if they hope to reach their expansion goals in these countries, they must expand beyond these niche markets and enter more mainstream markets against large competitors such as GE and Whirlpool. Second, Haier must also find a way to more effectively gain a foothold in poorer, developing countries such as India, something that they have struggled to do so far. Therefore, I would say the major question facing Haier is how can they expand out of the niche markets they currently occupy in developed countries, while also maintaining a focus on poorer countries where they have not had the same success as they have in countries such as the U.S. and the U.K.? This question is key because they have staked their international expansion efforts on the notion that they can expand out of these niches and gain a sustainable market share. Additionally, they have also made huge investments into less developed countries and must adjust their strategy in these countries in order to successfully tap the global market.
Analysis: A key part of Haier’s international expansion strategy, besides their focus on niche markets such as dorm-room mini-fridges, has been to hire local people to help run their international business units. This business model allows them to tap into local markets by communicating better with their end customers and learning their wants and needs. This reinforces one of Haier’s two major focuses for competing with local brands: product differentiation. Haier excels creating unique, customer-oriented products by listening