Case Study Of Haiier

It has not been easy for Haier to build its billion business from a failing refrigerator factory in a Chinese port city. Haier made its first pot of gold dogmatically relying on higher- quality products and reliable service. The founder CEO of Haier Ruimin Zhang has a “three thirds” sale goal: one-third from goods produced and sold in China, one-third produced in China and sold overseas, and one-third produced and sold overseas. In order to achieve the ambition, Haier became one of the first Chinese companies to engage in foreign direct investment in 1995 in Indonesia. After 10 years, Haier ranked third in white goods revenues globally. After taking Fisher& Paykel in 2012, Haier can officially announce its unbeatable position in white goods
Haier’s biggest strategy flaw is how the executives believe that focusing on niche markets would allow the brand to introduce a full line of products in international market. When Haier first enters the U.S. market, they instantly realize that there is a need for competitive refrigerators, however no manufactures were making them due to the low volume and price. Haier has the experience of making smaller washing machines for people who live in the big city with smaller living spaces. So Haier decided to take the share of niche market and use it as their first strategy for the new North America market. It allowed Haier to get the attention of the major retail chains like Home Depot, Best Buy, Office Depot and even Wal-Mart. It also avoids face-to-face market war with big local brands. Beginning with niche products is a good strategy if niche market share is all Haier wants. It is confusing how Haier decide it is right to go to the most competitive market like North America first, but choose to avoid head-on competition with big names like GE, Whirlpool, Maytag and Frigidaire. Haier don’t look to compete with big names, since they are much bigger than Haier locally. And said by Jemal from Haier, there is
As a highly customer- focused brand has always paid close attention to customer needs. Haier executive Gao believed “not localized” is one of the main reasons that foreign companies can’t beat Haier in the Chinese market. Because of that, When Haier step out of China, they use much more local people than any other multinational companies. Haier believes that local people and local thinking can help them satisfy the needs of the local customer. For instance, when Haier America first established, accountant is the only staff brought from Haier’s headquarter Qingdao. When Haier’s executive Gao talks about the foreign companies entering China, he argues when Electrolux came to China, they took people from Haier and it is how they quickly established their brand in China. He also said the situation is temporary since those people are not the core strength for Haier. On the other hand, When Haier entering the U.S., they thinks the Chinese employees do not have the international perspectives to help expanding worldwide, so they hires local people who are experienced, preferably in a leading white goods firms. There is no big difference between Haier’s international hiring philosophy and hiring Haier former team for Electrolux China. And also since Haier hires such a high percentage of local employees, it will be even harder for them to secure the human resources needed to maintain growth in the