Haier's Five Forces Model Of The Haiier Industry

Makos (2015) states political factors are mainly based on the country’s current political situation. The types of political factors that affect Sainsbury’s are, government policies, taxes laws and tariff, stability of government along with others.

Political: this inturns the legislation and government rules of the country that may influence and pose as a threat to the business,

If we want to analyse the political factors which impact upon the company we need to make a general view of the situation in the country. What are its law and requirements?

Political factors refer to the legal activities and political rules that may influence the business in some way. However, ASDA will continue to face many changing in the business for better or maybe worse when it comes to changes in government laws, for example, taxation and unemployment. The government is encouraging business to create or provide different jobs for the consumer this may affect or puts pressure on ASDA as they have to meet the all the government rules and regulation while continues to run the business according to the law (Worthington & Britton

In Chinese market, demand was high. Haier being able to read customer need properly, focused on Product Quality, After-Sale Services and Brand Building. While there was oversupply in the market, with product differentiation Haier was able to raise its prices. Their target was to be a first-class brand.

Political –how changes in government policy might affect the business, like a decision to subscribe building new houses in an area could be good for a local brick works.

The political frame addresses organizational and personal politics. It is important to identify who opposes your projects as well as who supports them. This step will help discover the main interest groups that would be most affected by the project outcome. The important issue in IMS project related to the political frame is the power shifts from functional managers to project managers after the initial stage of the project. This unplanned power shift to an inexperienced project manager who does not have much knowledge about the organization to deal with internal and external politics resulted in failure of the IMS project.

It is clear from the list above that political factors often have an impact on companies and how they do business. Organisations need to be able to respond to the current and anticipated future legislation, and alter their marketing policy appropriately.

The success of the cartoon series can be transferred to foreign market as well. By introducing its own mascot to the foreign consumers in any of its sales campaigns and promotion events, or even make it the theme in Haier’s retailor store, Haier would be able to amplify its brand image and be easily recognized in the competitive home appliances market.

Political factors is an external environment in which a business functions. This is a type of external constraint for a business and are related to actions of governments. This factors can affect how the business operates. Political factors include politicians, who make important decisions. These can be done at national level at the UK

that affect the way businesses operate. How a political trend affect business depends on the type of industry that we are looking at; since some legislations are only directed to a certain type of industry. Economic forces can also cause a crisis in an organization. Some factors such as the unemployment rate, interest rate health care costs and others can definitely affect the economic stability of any organization. Top management must consider political and economic trends that affect the specific

However, this lack of governance is not just seen as disadvantage for India. India is amongst the top 40 nations to have been involved in the highest number of business regulation reforms in the last five years (Innovasjonnorge, n.d.). Reform has eased business operations in India as the mainly concern the introduction of new technology. These technological improvements have led India to be highly industrialised, rather than agriculturally based like in the past. For instance, India is now the world’s biggest manufacturer of small cars (Innovasjonnorge, n.d.).

Political environment – The processes of national, regional and local governments, as well as various power groups that can affect the rules for doing business. This can include government intervention in particular industries, tax policies at all levels, government expenditures for certain causes, legislation aimed at implementing social policy, and regulation of various industries and trade practices.

In the end of 2004, Haier, China's number one company and a leader in white goods market segment, had almost $15 billion in sales revenue and a growing presence in black/brown goods sector. Haier followed a distinct expansion strategy, entering developed markets in Europe and USA, at first as a niche player, and penetrating markets in Southeast Asia afterwards. Haier pursued a very aggressive globalization strategy and entered the Australian and New Zealand Markets in 2002. They diversified the production capacities, manufacturing goods for Asian and Middle Eastern markets at their plant in Pakistan, while the products for American market were produced in USA and even had ‘Made in US’ sign in order to make connections with strongly patriotic US customers. So, by 2005 Haier has achieved globe recognition, establishing its presence across all continents.

Political environment is significant to do business in other countries. There are different factors of political environment. These factors can influence the government decision making and other activities. For foreign investors every country set some rules and regulations. Investor need to maintain these rules and regulation to do business on certain country. Political factors can influence the government to change these regulations. So investors need to know the regulations and get the proper knowledge about political environment.