Haier Case Study

Whirlpool is the world’s largest producer and marketer of small and large home appliances such as mixers, food processors, washing machines, refrigerators, air conditioners, etc. Whirlpool also has a long standing relationship with Sears, which sells Whirlpool products under the brand name Kenmore. In addition to its North American presence (both manufacturing and sales), Whirlpool also has a strong presence in Mexico, and Europe. Being the largest producer in the world has helped Whirlpool to compete on lower costs through economies of scale and through its Global Procurement Organization (GPO). In addition, its large networks also help in

1.3 Physical Resources & Capabilities The ALDI brothers took over the family business of their parents in 1946. World wide expansion led to enormous growth. This comprises around 9800 stores (1000 to 1500 SQM each). The layout is simple with wide ails designed to refill shelves in the fastest, most convenient way {Brands, D. 2003}. They offer a small assortment of mainly fast-moving items (approximately 700 food – including a slim and organic line- and non food products). Small warehouses are located at the back of each store. Affiliates are equipped with limited technology such as intelligent cash systems high-end product concerning quality and price and bottle deposit machines. ALDI won the 2008 energy management award for great results in terms of cooling systems, illumination etc. Most stores have about 100 parking space and a shopping cart area near the entrance. ALDI has a long history which implies that they have gained great experience over the years. The location and layout of stores are designed to support fast and efficient supply and not especially aimed at customer needs. This is a weakness. Stores advantageously located as there are in convenient reach for consumers. Their product range is adapted to various consumer needs (organic, healthy living). The technological equipments are of high quality enabling fast operations at the checkout (ALDI’s staff are two times faster compared with other similar operations). This is

Haiser entered into overseas markets as a contract manufacturer for multinational brands in early 1990s. First exported products to UK, then Germany, France and Italy. It also establisted joint ventures to explore the foreign markets; i.e. established a JV with Mitsubishi to set up China’s largest AC (“air conditioners”) production plant in 1994, in 1995 set up a JV with a local firm in India to produce refrigerators and ACs, in 1997 establised a JV with a Yugoslav company in Belgrade to produce ACs.

H&M cruelly underlined the continuity of its expansion strategy in long-term perspective (Regnér and Yildiz, 2014), which means continuing to open stores ultimately (Barman and Petersson, 2002). It is planned that H&M will establish another 300 new stores, especially China, the United States and the United Kingdom as the largest growing market. Despite the countries mentioned before, South America, Latvia, Indonesia, Bulgaria and Thailand will be involved (Regnér and Yildiz, 2014).

It’s an effective way to speak directly to the customers’ needs, while offering them the right product solution.

The HAI legislation is implemented by State laws. The Bill was introduced to the House of Representatives in November 11 2007, and then was referred to the House Committee on Energy and Commerce. At last the bill was referred to the Subcommittee on Health. The legislation is also implemented by enforcing itself through awareness. There are currently 32 states that are requiring facilities, by law, to report HAI data to National Healthcare Safety Network. Overall the CDC is in charge with implementing the HAI prevention and reporting guidelines. According to the article “Healthcare-associated Infections” The CDC, in collaboration with other organizations, has developed guidelines for the prevention of CLABSI and other types of healthcare-associated

The company employs and trains skilled sales personnel to promote its items. Besides, direct sales branches are strategically located in high traffic zones to attract more potential buyers and strengthen revenues. The company manages its supply chain effectively. It produces annual publications of supplier codes of conduct, a move that increases brand recognition. The company enjoys implausible trade name trustworthiness, implying that many people will

Describe how Haier uses activity sharing and the transfer of core competencies to create value. (related diversification strategy)

H.E.B, the 11th largest grocery chain in United States, started 30 years ago. When the company was started, it was a predominantly private label company. Recognizing the customer drawing power of national brands, H.E.B took crucial steps to build a strong national brand presence. HEB was known for its superior quality products, its customer service and a broad assortment of merchandise. Additionally the company’s focus on delivering on its promise of everyday low prices, especially to the low income households that it catered to, was amongst its most critical success factors.

The main differences between Matsushita and Sony’s products are that, Matsushita product line is more involved in the household appliances market as it is the world leader in this category, while Sony strives to be the globe’s technological leader and has a product line that is driven by advanced consumer electronics. “While companies such as Matsushita concentrates on being customer intimate, Sony has differentiated itself by focusing on product leadership.” Matsushita is the largest home appliances and household equipment (HAHE) producer in the world. Some of Matsushita’s products include: microwave ovens, refrigerators, irons, fax machines, air compressors, automatic washers and dryers, vacuum cleaners, air

Honicker Corporation is a USA based, successful dashboard manufacturer. It has opportunities for international expansion, but due to the ultraconservative culture it did not happened until they faced a change in management in 2009. Honicker was a rich company, and to expand, they took the short road and acquired four companies around the world: Alpha, Beta, Gamma, and Delta. There were two commonalities among these companies: they serviced mainly in their own geographical area, and senior management knew their geographical culture and hold good reputation with their stakeholders.

5) Another example of creating value by using a related diversification strategy was when Haier applied innovation to product design and production from the Liebherr Corporation of Germany. This strategic move created value by not only competing and expanding its product categories, but also by creating market needs. (pg. 7) The activity sharing and market need helped create product breakthroughs like washing machines that operated without detergent or water, and refrigerators that needed no compressors. (pg. 8) Another example of creating value was when Haier entered a strategic business alliance with Sanyo. Sanyo wanted to increase its competiveness in China taking advantage of Haier’s extensive distribution network, whereas Haier hoped to enter the Jampanese market by utilizing Sanyo’s distribution and service centres’s. (pg. 12) In the end Zhang Ruimin utilized this diversification strategy in an attempt to gain market power. B.Also discuss how Haier can use unrelated diversification strategy to create value.

Haier is a Chinese electronical appliances producer and it decided to take a 20 per cent stake in Fisher & Paykel Appliances Company (F&P) which is a New Zealand company. According to their agreement, besides the stake, Haier will also take two seats on F&P’s board and also they will cooperate in various business functions, including product development, sourcing, manufacturing and marketing. This action brought win-win situation to both companies. For Haier, unlike its domestic acquisition strategy, this alliance strategy enabled access to well established

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

For international business strategy, Hill and Jones (2004) suggested that there is four basic components of strategy development need to be addressed by a firm in order to succeed in foreign markets. These components are: ¡¥distinctive competence¡¦, ¡¥scope of operations¡¦, ¡¥resource deployment¡¦, and ¡¥synergy¡¦. By applying the theory, it is revealed that Whirlpool¡¦s distinctive competence is its brand name ¡V Whirlpool, the world¡¦s largest white-goods manufacturer. For the scope of operations, Whirlpool is specialised in broad middle market niche of white-goods products. In terms of resource deployment, Whirlpool allocates the resources equally to its three product lines. As far as synergy concern, due to the poor business performance of Bauknecht and Ignis, Whirlpool is not benefited in whole.