Marketing Strategy Of Haier Group

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Founded in 1984, Haier Group is a multinational consumer electronics and the world’s leading white goods home appliance manufacturers. It is headquartered in Quingdao, China and it designs, promotes, manufactures, and sells products such as washing machines, refrigerators, and air conditioners… Hair Group is considered as a great example of a company that was almost unknown to an active company that earned its way to the international arena. At first, the company was in a poor condition: unskilled workers, inferior product quality, and low productivity. Financially, it was terrible. Haier Group success was not easy; it was a combination of hard work, initiatives and passion. Zhang Ruimin, Chinese businessman and Chief Executive Officer…show more content…
The CEO believed in creating strong teams by creating an employee handbook. Indeed, innovation was the core corporate culture. Contrary to other companies, Haier focused on “people” approach, which helped the company to grow internally. Transforming a “vertical organization structure into a horizontal market chain structure” (Lau & Han, 2007) was a very smart move. Zhang Ruimin treated his employees as entrepreneurs/partners, which I believe is motivating and productive. Their loyalty increased thanks to rewards/bonuses. It was not enough since the “10-10” scheme was created and consisted on firing the lower 10% and giving the opportunity to train the highest 10%.
The finance division also played an important role in Haier’s growth because it was providing different services such as “consulting, business support, and banking services to the SBU’s” (Lau & Han, 2007). Zhang Ruimin even created a motto for his employees that consisted of developing self-respect, attaining self-discipline, respecting others, thinking outside the box, being honest…

After Zhang Ruimin, Nadia Erroja; What would I do? And why?

Haier was able to maintain a stable employee turnover and it also became within the most popular employers among university graduates. I agree with the fact that HR division sent out a monthly report to all employees indicating their performance level. However, I do not agree with the “10-10” scheme, which consists of firing the lower 10% and providing

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