Haier Case Study

Haier is not only a brand of greatest value in China, but also the forth manufacturer who produce white household electric appliances around the world.

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.

When a certain point is reached regarding a company’s success, a set of different opportunities arise and partnerships may unfold. However, with every possible strategy available, risks and benefits also come into play; without discarding any of them beforehand, every option is a strong candidate until a final decision is made. In this case study we will analyze the current business strategy pertaining

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,

In the United States the home appliance industry is a mature market with high penetration, therefore, replacement product is significantly important to the industry. The United States has three major manufacturers for domestic production: Whirlpool, General Electric, and Electrolux. The appliance industry is changing rapidly and becoming more competitive with the influence of Asian competitors, specifically, LG Electronics and Samsung Electronics, who are major appliance importers. Subsequently, in January 2016, a Chinese manufacturer, Haier, bid for the purchase of General Electric Appliances, finalizing the contract on June 6, 2016 (Thompson, 2016).

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

Based on the SWOT analysis provided in the case, what are the two or three factors that Mistine should stress in its strategic planning as it looks to continue its growth and dominance in the Thai market? How can Mistine match its strengths with its market opportunities to create competitive advantage moving forward?

In the opinion of the respondent, “Made in China” does harm Haier’s development in mature markets due to the low-quality image associated with Chinese products. Haier established its brand in mature overseas markets by first analysing the demands of local consumers. The company believes in a strategy of localization in overseas markets.

Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources.

This paper will present a comprehensive analysis of WFM’s strategy in order to determine the alignment of the company’s inputs with strategy based on Porter’s three competitive strategies. Additionally, the company’s inputs will be highlighted before making a determination for the level of congruence of the strategies and inputs through comparison.

Competitive strategy, after Porter, came to be defined as the strategy of a business unit which seeks to achieve sustainable Competitive Advantage (SCA). The literature on strategy deems the market-based view (MBV) and the resource –based view (RBV) as two approaches to giving businesses the competitive edge they need to compete in their industries. Aside from having competitive advantage as their ultimate goal, the two approaches are also similar in the sense that they both make use of particular tools and models in their undertakings. They also differ in numerous ways,

Haier catapulted in the last two decades producing consumer products that are sold in similar fashion. They all shared distribution channels, outbound logistics, and sales forces. Haier was able to develop core competencies through effective activity sharing of primary activities resulting in a superb competitive advantage, ultimately creating value. CEO Zhang Ruimin realized that using both strategies’ can work in Haier’s favor with the ultimate goal of getting name recognition globally. His related diversification strategy used

The second theme of recent years is the RBV of the firm, which posits that strategy (and

1. Discuss the primary reasons why Haier moves from a single and dominant business strategy to a diversified strategy.

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