Haier Case Study

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Haier appliances group enters New Zealand market: analysis of its strategy’s suitability with resource based view and SWOT
Ma Jinxiao SUN:109028310

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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
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The concept of suitability originated from success criteria which are introduced by Johnson, Scholes and Whittington (2006), together with two more criteria: acceptability and feasibility. And to evaluate each, there is a wide range of analytical techniques available. Suitability is “concerned with whether a strategy addresses the circumstances in which an organisation is operating” (Johnson, Scholes, and Whittington, 2006, p.358). There are many frameworks that help to understand suitability, such as core competence and environment analysis. Understanding competitive advantages basis of Haier will assist illustration of entering New Zealand market to see whether the alliance is suitable for Haier. Thus, the combination of resource based view (RBV) and SWOT analysis is preferable here.

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Mueller (1986) suggests tough high-profit firms decrease return on asset while low-profit firms increase the figure annually, they will not converge to a common mean because there is distinct resources usage besides market force. As a source of comparative advantage, RBV implies that the ability for a firm to create more values than its competitors depends on its stock of resources and capabilities arise from using those resources. Besides, RBV suggests these resources and capabilities shall be difficult to obtain from other firms, i.e. scarcity

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