1.0 Introduction
Haier group is a multinational manufacturing company providing consumer electronics and home appliances. In 1984, it was been founded in Qindao, Shandong province, China, with a joint-venture contract with Liebherr, a Germany’s refrigerator company. Under the development of over three decades, Haier has transferred from a single-product company to a global manufacturer with multiple product lines. It has expanded its brand to brown goods and white goods. Nowadays, Haier is the 4th largest white goods manufacturer in the world. The business scope of Haier is technology research, product development and manufacturing, trade and financial services (Haier, 2015).
2.0 Company Pricing Strategy
Haier’s generic product
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Therefore, the logistics costs can be saved to contribute to the profit margin. Furthermore, the most important strategy of JIT strategies is JIT distribution: according to the orders distribution in the local range, at any time and any quantity, and the quality of products must be met the requirements. This strategy is difficult for Haier, but it can help to reduce the delivery cost.
The key point of Haier’s value chain is customer service and innovation. Haier believes that customer value is the overall evaluation of the utility for benefit gains and benefit losses of a product perceived by customers, and it is also the perceived power of the market after adjusting the relative price of the company’s products (Guoping, 2012). For example, in China, Haier provides unique and high quality customer service with 24 hours’ opening free consultation and door-to door service. The requirement of customers is guideline of innovation; thus, Haier can reduce expenses of needless innovation research and improve the efficiency. The most important is it can create competitive success for the loyal customers as well as expand its market.
3.0 Conclusion
In the price war, most companies think lower price can attract more customers; however, by implementing high pricing strategy, Haier is in leading position in the price war. In China, Haier’s four main products’ domestic market share is around 30%. High pricing is a guarantee of high quality, it helps to build brand
The JIT approach to manufacturing involves timing the delivery of resources so that they arrive just when needed. Inventory optimization models help the firm determine how many of which items in which sizes should be delivered to each specific store during twice-weekly shipments, ensuring that each store is stocked with just what it needs. Trucks serve destinations that can be reached
Marketing analysis: Haefren Baum sells high quality home furniture, which is manufactured by German company, Wiegandt GmbH Cologne. The demand for high-end furniture is cyclical and influenced by consumer confidence and the overall economy. They have been incorporated since 1970, therefore they do have a reputation and brand image already built. They have been a customer of Wiegandt since 1968 and have maintained good relations so far. The German economy had a bust in 1993, which lead to a decline in furniture sales. This is evident in the sales dropping in 1993 to 1995 from $18,647 to $14,397. Much of the industry has to cut back prices to keep
“La Haine”, a 93 minute film regarding about three adolescents(Vincent Cassel, Hubert Kounde, and Said Taghmaoui) who struggle to cope in a poverty-stricken environment in which hatred and violence are part of everyday life. Even the title “La Haine” which is a French word, translated to 'The Hatred' suggests what the film is about. Based on a true event, “La Haine” is inspired by a real event where a young man was murdered while being questioned at a Parisian Police station. In exploring racism in the Paris suburbs, this film has a direct contrast with more typical French films, such as Amelie(2001) which presents a far more romantic and idyllic vision of French life. The beginning of La 'Haine' shows the beating of a
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.
As his banker would you approve his loan request? If so, would you put any
b. Kindly inform the undersigned whether or not your representative will be making a visitation in the near future.
As argued by Lubben (1988), JIT allows businesses to have better management since this ensures that there is no loss as there is sufficient number of clients requiring the equipment. This reduces her to deal with huge deliveries when the clients’ numbers are not increasing. (Lubben, 1988, p.4) also suggested the idea of JIT that “... major elements of manufacturing – capital, equipment and labour are made available only in the amount required and at the time required to do the job.” So it is a good practice by utilising JIT approach as it reduces wastes and ensure the correct amount of equipment is available (Lubben,
In the story Perceval edited by Roger Sherman Loomis and Laura Hibbard Loomis, Perceval the main character has many adventures, in which he learns many lessons about life.
Increase customers’ value by adding value to features of the products, improve customer service by being more responsive, increase the range of complementary products and modify as per orders. Differentiation should promote long-term profit and growth. Moreover to benefit from cost advantage, identify both primary and support activities are clearly identify, required a strong know1egde of organization value if value chain will disrupt. Analyse how to create customer value, recognize cost drivers from each activity and identify between link activities by reducing cost from one to
JITD can lower the distribution cost, inventory cost and even the manufacturing costs. Distribution can be more efficient as the delivery is not based on the order from distributors. It is based on the forecast from Barilla. Barilla can better utilize and arrange the distribution team by planning a more efficient route and schedule to deliver the require product to each distributor on time. Barilla become more proactive in controlling the delivery schedule and so lower its distribution cost.
As mentioned above, because of The Optima’s high end service and product quality, while implementing premium pricing, company aims to reduce the prices slightly without effecting negatively its “high-end image” and company exerts different promotional offers to support the higher price policy and make the
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
In pricing strategy, Miele sets high price as a symbol of high quality product and differentiation