Haier Essay

1589 Words7 Pages
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…show more content…
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

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