Haier Case Study

1222 Words5 Pages
Introduction Haier is the world’s 4th largest white goods manufacturer. The business scope of Haier is technology research, product development and manufacturing, trade and financial services. The key products are refrigerators/freezers, commercial air-conditioners, microwave ovens, washing machines, dishwashers, televisions, mobile phones, and computers, etc. Haier has 240 subsidiary companies and 30 design centers, plants and trade companies and more than 50,000 employees throughout the world. Haier specializes in technology research, manufacturing industry, and trading and financial services. Zhang Ruimin founded Haier in 1984, which was the 6th year of Chinese Reform and Opening-up policy released. Haier had experienced the…show more content…
Several mergers and acquisitions took place during this phase, leading to over extension of the brand and failure in some. With increasingly competitive domestic market, fierce price war, globalization potential, scale economies and experience curve learning, Haier’s next step was internationalization wherein it focused on taking the brand global in order to achieve greater revenues and change its image as a producer of cheap goods. Faced with little competition in the beginning due to country image, Haier successfully cleared the quality standards and bought itself place in the foreign markets. Several strategies like the “Three one-thirds” and “10-20-30” strategy were adopted during this stage to link strategy with measurement criteria in order to drive performance at the organization. Functional Strategy Basis its core competencies viz. innovation and quality, technology strength and corporate culture (financial and human resources), Haier has practiced cost leadership in the appliances market. This has continued through the diversification and globalization stages across. Organizational Restructuring Haier adopted the Strategic Business Unit structure making each business unit a separate profit center and responsible for individual performance. This also led to incorporation

More about Haier Case Study

Open Document