Haier Case Analysis

2712 Words Apr 20th, 2011 11 Pages
The Haier Group

I. INTRODUCTION

A. EXECUTIVE SUMMARY

1. This case analysis studies the globalization projects of one of the most successful companies in China, Haier, and a small appliance company. The case analysis focuses on Haier’s plans in the U.S. market to establish itself as a major brand. The case also gives information about the competition in the U.S. consumer appliance market and its structure, and the strategies adopted by Haier to overcome the obstacles.

The problems faced by Haier in the high-end market in the U.S. consumer appliance industry and future prospects of the company in the US market are also discussed. The case also provides information on the Chinese consumer appliances market (ICMR , 2003).

Zhang
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After Zhang took charge of the company, he realized that

the company did not look after the quality of its products; nor did it bother about customer satisfaction. In 1985, Zhang started importing technology from a German

firm and began manufacturing technically sophisticated refrigerators (ICMR, 2003).

Zhang's goal is to gain global recognition for the Haier brand. Zhang’s

management philosophy is "Only play chess with the masters." To compete with

major international players, I believe Haier needs to focus on building its own

brands rather than settling for manufacturing things to be marketed under a Western company's brand. To achieve that end, Haier's strategy is an ambitious

one: "Fight in the toughest markets first." Enter advanced markets first, establish

the Haier brand and then make inroads in developing markets. That is why, in 1990, Haier exported its first batch of refrigerators to Germany. It is also why, in

1999, Haier established a refrigerator factory in South Carolina. We continue to

learn and grow by studying the competition (Ruimin, 2009). Since its founding in 1984, Haier's unique philosophy has merged the business experience of East and West to

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