Chinese Company: Haier Business Strategy

963 Words Feb 26th, 2018 4 Pages
Haier followed a distinct expansion strategy, entering developed markets in Europe and USA, at first as a niche player, and penetrating markets in Southeast Asia afterwards. Haier pursued a very aggressive globalization strategy and entered the Australian and New Zealand Markets in 2002. They diversified the production capacities, manufacturing goods for Asian and Middle Eastern markets at their plant in Pakistan, while the products for American market were produced in USA and even had ‘Made in US’ sign in order to make connections with strongly patriotic US customers. So, by 2005 Haier has achieved globe recognition, establishing its presence across all continents.

Haier business strategy was to enter niche markets, where they could compete with industry giants. Competing with top global international players like Samsung and LG in a number of segments, as well as with Whirlpool and Electrolux specifically in white goods, one of the main problems for Haier was how to clearly show its commitment to quality products and differentiate itself from them. Haier did not want to fall into a trap of general customers’ perception over the Chinese products as of being low quality. Another challenge was to compete with multiple brands producer (i.e Kelon), while Haier was focusing on genuine…