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International Business Case

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FACULTY OF ECONOMICS

UNIVERSITY OF LJUBLJANA

INTERNATIONAL BUSINESS

SCHOOL YEAR 2014/2015

INDIVIDUAL ASSIGNMENT
(2-3 pages, typed and handed in personally on lectures)

Read the case Haier’s U.S. refrigerator strategy and answer to the following questions: 1. What were the drivers of Haier’s success in U.S. initially and why? 2. How did the competitors (Big Three) react to the Haier’s success? How are their strategies different than Haier’s? 3. Why do you think Haier built a new plant in South Carolina? Was it a wise decision? 4. What strategy (marketing, internationalization, etc.) Haier should follow in the future?
This assignment represents 10% of your final grade.
Deadline: Thursday, 5th March 2015!

INDIVIDUAL ASSIGNMENT
Haier’s U.S. refrigerator strategy

1. Haier achieved its success by familiarizing with the brand and competing with the major established brands for a larger market share. Haier corporate strategy is driven by international growth through creating brand awareness and recognition, meeting consumers’ needs and increasing market shares in different segments. Expending abroad is a response to competition within the domestic market both from imports and local products. Haier started ‘taking the fight to the enemy’ by breaking into the U.S. market using a combination of quality, price and local manufacturing. On product strategy and investment aspect, Haier should also follow the principle of “Easy to Hard”. For example, Haier chose its most excellent product-refrigerator to enter the US and European market as the first step. In the US Haier, the "Haier Design Center" is built in Los Angeles, New York has "Haier America Trading" company, and the products are manufactured in South Carolina. Haier in the United States has successfully formed the design, production, and sales trinity of

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