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Haier’s Globalization Case Analysis

In: Business and Management

Submitted By bamboo901
Words 647
Pages 3
Problem Statement
With the entry into WTO, Chinese household appliances industry begins facing the globalization challenges and also worldwide learning challenges. Haier has started its formal globalization in 1997, and has been able to set up a successful example in competing with those challenges. However, the coming years are bringing more challenges including how to establish itself as a major localized US brand, integrate with locality, build brand recognition and manage its brand.
Analysis
Reputation of the brand and company’s creativity has long been the Haier’s main strengths for competing inside China. As a result, the sign of success in global competition is also supposed to be the brand. Meeting consumer’s needs is always what Haier focuse and what helped Haier to establish its image. What Haier should do is to continue creating resources, which is based on innovation, and create worldwide prestige based on its accumulated knowledge and experiences.
SWOT analysis:
Strengths: Technology, innovation, corporate culture, high quality products and service;
Weakness: low level of core technology, small location network and brand influence;
Opportunity:government support,global economic integration,advantages in domestic market;
Threats:global economic integration, strong rivals, country image(China: low quality).
International strategies(base on China to spread all over the world):
Cost leadership, differentiation and focus are three ways to penetrate in global markets. Haier chose the differentiation by being more customer-focused, stressing Speed, which is reasonable to a company without complete location networks, sales networks and after-service networks. Haier sent its R&D stuff to US to talk with customers about their needs. They paid so much attention on the minor difference that they can offer to win the demand, just as they made small...

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