Haier Case Study

Establishing strategic alliances, such as Myer, Itochu Corporation, Inchcape BHD, wishlist.com). This created new distribution channels, new intellect resource base and new markets.

In other words, with this Global Strategy, Haier entered into international markets in 3 different ways;

1. Identify the key factors responsible for the success of Gordon Biersch to date. What concerns, if any, do you have as the company looks ahead?

As mentioned previously about corporate strategy focuses on the alternatives of entities in which the organisation will challenge and maintain those organisations and other corporate level assets (Enz, 2010). The corporate level consists of three expansive accesses for example, the concentration, vertical integration, and diversification, which divides into two extensive categories, related and unrelated. Therefore, these strategies exhibit their strengths and weaknesses of the organisation. In addition, Concentration strategy authorise an organisation to concentrate on a particular business, however, this shows disadvantage to the firm as it relies on that one corporation for survival. Whereas, Vertical integration is a strategy that engages the firm becoming its individual supplier therefore, it is less profitable as it minimise strategic adaptability.

Diversification: Developing new products in new markets can be a riskier strategy given the unproven market place. However, if innovation is a business value it may be worth the risk as long as you understand what’s at stake.

New Product Development : the aggressive investment strategy into R&D division led to speed in releasing new products in the market. This gave the company higher ROI returns projections. The faster cycle of innovation led to multiple product availability in the market which led to further increasing the gap between them and the competitions and also the company indulged in manufacturing self brand products rather than Co-branded or Partnerships.

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

In the text, the author mentions the similarity between Miles & Snow and Porter’s generic typology where the “prospector model in Miles and Snow emphasizes differentiation and the defender business typically emphasizes low cost” (Parnell, 2014, p. 197). Porter’s generic typology has both differentiation and low cost considerations in the model with the focus being based on economic conditions and economic influence. In light of the similarities, the difference between these two business strategies are set in their core beliefs and concepts. Miles and Snow present their four models from a “philosophical” approach to business strategy and display the models benefits through real time explanation. Considering the four conceptual strategies “prospectors, defenders, analyzers, and reactors” the first described as “prospectors” follow “a dynamic uncertain environment and maintain flexibility”, additionally prospectors are known to lead and thrive as a “first mover” (Parnell, 2014). Prospectors tend to not like their environment to change but channel their creativity to design new products for their business. The Porter’s generic typology that is similar is the aspect of product uniqueness or unusual products known as “differentiation strategies” (Parnell, 2014, p.184), and based on the aspect of specificity. In the article, “Strategy Choices of Potential Entrepreneurs” the author explains the benefits of Porter’s three generic models and states that many entrepreneurs employ

Product diversification is a feasible way to obtain growth through new products. The company can use existing product knowledge to develop the brand into new lines to increase exposure and use similar technology to increase synergies. Leveraging off an existing well-known brand to a market that is familiar with the brand will also increase the possibility of success while maintaining lower marketing costs in

3. Describe how IKEA'S expansion has re-energized mature markets around the world and changed the competitive situation.

As technology advances, lots of products are flooded into the market. These products range from simple easy-to-use toys to fairly-ease-to-play video games. The need to understand the use of these products is essential and this explains the need for the use of manuals. What then is a manual? A manual is a documentation which is written with the intention of helping users of a particular product in knowing how best to use it (Online Technical Writing: User Guides). To further serve the increasing number of customers for product broughFt about the explosion of online annuals. If online manuals are supposed to help users of a product rather than confuse them, then the online manual of Haier operating system, which is available at HYPERLINK "http://www.gnu.org/software/make/manual/make.html#Eval-Function" http://www.manualowl.com/m/Haier/D200/Manual/178026 needs exploring.

Each section of diversification offers valued products and services globally. The transportation piece offers technology for mining, oil and gas, marine sector, and others. The energy area delivers gas, steam, power generators, oil and gas extraction, mining machines and wind turbines. The Aviation part deals with the manufacture of aerospace products for military

Zhang introduced a series of strict measures to enhance the employees’ working efficiency and product quality control. At one point, Zhang ordered his staff to destroy 76 faulty refrigerators from a total of 400. The workers were hesitant to do so, because at that time the cost of a refrigerator was worth equivalent to two years income in China for average worker and faulty products were also sellable. However, Zhang persisted and destroyed all the defective products. One of the sledgehammers used has been kept in Haier’s head office in China as a reminder to always supply customers with high quality products and services. This anecdote and the sledgehammer remind all Haier employees to always pay attention to high quality. In order to build their brand, Zhang set higher standards for the company than were required by the industry regulations. According to the respondent, goods exported from China have more rigorous quality tests than domestic equivalent in order to build a better international brand image. “Here at Haier we are dedicated to providing customers with high quality, innovative and smart products to better meet their needs.” said the interviewee, “ We listen, we solve problems, we invent, and then we listen more and we deliver quality, design, and

This extended essay aims to answer the research question “How effective has Amorepacific’s joint venture in China been as a growth strategy?” This topic answers the business strategy of their company, as well as flaws and conflicts blocking their development. Focusing on the topic, I will be looking in the context of joint venture, marketing topic within the Business Management Syllabus. How Amorepacific has successfully gain profit from China through joint ventures but also loses their large spending power due to the North Korea and South Korea Missile Conflict. With an overview of the Missile Conflict, and the history of the company within the industry to better reflect and understand the current situation of the company. Additionally, knowing the strength, weaknesses, opportunities and possible threats (SWOT), to analysis their success, profits, and suitable growth options.

Haier has had the advantages of operating in a very large and fast growing home base which contributed to its rapid growth. Since its foundation, focusing on higher production quality and meeting customer needs to the fullest extend, along with formulating an international expansion strategy; Haier became a dominant player in the global appliances market.