BUS 478 case study Haier

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The most dominant problem addressed in the case that Haier is facing is that it lacks of brand popularity in the global market, comparing to its direct competitors such as Whirlpool, GE appliances, and Electrolux. Even though Haier made its effort to amplify its brand image and popularity globally by making a bid to acquire Maytag Corporation yet did not succeed, it is still difficult for Haier to enter the high-end segment of the US white goods market. According to statistics from Euromonitor, Haier’s 2013 market shares in consumer appliances segment in the North American and Western European markets were 0.9% and 0.5% respectively, which are significantly lower than Whirlpool’s, one of Haier’s major competitors in the U.S. and Europe,…show more content…
Moreover, a Haier Brothers cartoon series featuring the two brothers became one of the most popular programs on TV among Chinese kids who were born in the end of last century (Wang, 2008). Success of the cartoon series not only planted Haier’s brand image in Chinese children’s minds, but also became a mean of promoting Haier’s organizational culture: Altruism, by endowing Haier brothers great spirits of giving, comprehension, and never stop seeking for knowledge (Wang, 2008).

The success of the cartoon series can be transferred to foreign market as well. By introducing its own mascot to the foreign consumers in any of its sales campaigns and promotion events, or even make it the theme in Haier’s retailor store, Haier would be able to amplify its brand image and be easily recognized in the competitive home appliances market.

Alternative strategy 3: Cross-Border M&A.

As mentioned above, even though the U.S. government has strong opposition on foreign firms’ acquisitions of American national firms, cross-boarder merging and acquisition is always one of the best ways to quickly enter a foreign market (Textbook). Haier attempted to acquire Maytag in 2005 but then withdrew for unknown reason. Maytag was later bought by Whirlpool in 2006; and after the acquisition, Whirlpool surpassed Electrolux to become the world’s largest home appliances manufacture (Wikipedia); the benefits of acquisition are obvious. By acquiring
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