Localization Does Harm Haier

Haier (“the Company”) was China’s biggest white-goods producer and supplier in 1990s. In 1984, there was nearly 300 local producers in China market, most of which were producing poor quality goods. However, customers were willing to pay more for higher-quality products and reliable service. This need created an advantage for differentiation.

It is very clear that a design for their goods is well maintained. The highly demand on their products from customers everywhere in the world drives them to be powerful. It is recognized that the market study and analysis are elaborated to understand the market needs. For instance, high volume product reflects how they design

A company that wants to market its product globally has only two branding strategies available: either use the brand name everywhere or develop a new brand name for each different market.

Haier aimed to capture mature markets first and leave the small ones for later as it would be easy for the company. Haier started from the European and U.S. which contributed 3% sales and later focused on Asian countries. Haier developed the technique through the individually custom made approach when coming into just about every specific current market at the specific occasion. The leading purpose main Haier’s internationalization ended up being to achieve competitive-oriented dangerous market-entry and also progress. Haier constructed the permanent market place through current market accessibility. Haier’s transferring or maybe additional accessibility settings were being almost all aimed at making a new world-famous company. Second of all, investing in foreign countries is usually a reply to rivalry in the everyday current market the two through imports and also neighborhood goods. Haier levered the intercontinental knowledge together with superior technology and also managing in order to innovate the selection of goods and also discover undeveloped European Countries by building the manufacturing facets country wide. Furthermore, Haier decided the market-entry with reply to customers’ internationalization.

One of the most significant barriers comprises the brand equityenjoyed by most established brands. The repute of the brand is extremely important to customers; luxury brands such as Jaguar, Mercedes-Benz, BMW and Audi have a long and magnificent history to boast about, and the companies work hard to preserve the association between them and other symbols of individuality and of top-notch quality and performance.

contributed to faster transfer of ideas and a global convergence in consumer tastes and values (Quelch, 1999). Global brands, as defined by Aaker and Joachimsthaler (1999), are those brands whose positioning, advertising strategy, personality, look, and feel are in most respects the same from one country to another. Reviewing the top 10 global brands, Quelch identified

Before any company embarks on the process of international marketing and selling its products in foreign countries, it is proper that it does a sort of strategic analysis to examine the feasibility and its scope for success. The whole marketing mix sometimes needs to be

Many companies changed from local competition to globalized competition. They have developed truly global operations, making and selling their product worldwide. They are not only trying to sell more of their locally produced goods in international markets, they are also buying more components and

When the company exports a product label, it has the choice between using: specific brands in each market (local brands), or a single brand for all its foreign markets (global brand).

Establishing an international/global brand lies hugely on its capability to explore or venture into new fields and also maintain its competitive advantage in terms of production and econimies of scale. A brand can be truly global once it shadows same values world over. An international brand when markets for itself removes any kind or barriers that comes its way, for example linguistic, territorial, religious, etc. A natural demand or an emotional connect has to exist for a brand to excel. When business strategies are to cut across borders and offer a large number of products and services, corporate houses face a lot of difficulties related to maintainance cross-border acquisitions and enforcement of patents and trademarks.

Debate the issue of global versus adapted products for the international market. A recurring debate exists relative to product planning and focuses on the question of standardized products marketed worldwide versus differentiated products adapted or even redesigned for each culturally unique market. Those with a strong production and unit cost orientation advocate standardization and others, perhaps more culturally sensitive, propose the policy of a different

The purpose of the report is to present the concepts of international marketing environments, globalization concepts, benefits and challenges of internationalization with respective to host and foreign countries with a comparison to the movie “Outsourced”.

More so when it comes to international markets, it becomes a major test and challenge in employing competitive marketing strategies, (Kleindl, 2007). In any industry whether Beverage or Retail business, local businesses have managed to flourish, coupled with unique business laws, income levels, cultural differences and political forces it’s a challenge to penetrate into global markets and get a fair share of the market. As a result, it has become important for organizations, with global brands and products, operating in international markets, or planning to do so, to understand the types of strategies that are needed to penetrate local markets.

The product are made according to a high quality and branding is also taken into consideration.

EuroAsia Marketing belongs to a Small Medium Enterprise company. It mainly sells electrical products and services ranging from low voltage devices, automation products to medium voltage devices such as transformers. The company offers a wide array of products and carry brands such as Schneider Electric, Telemecanique, Merlin Gerin, Clipsal, ABB, General Electric, Siemens, 3M and many more.