Haier
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 strategy is differentiation and focused differentiation. For example, some products of Haier are designed and manufactured for specific customers. Meanwhile, comparing with sales volume, Haier insists that the customer satisfaction and reputation are more important. The customer loyalty can be strength by high brand value. Thus, to charge higher prices with higher quality products and higher brand value than those of its competitors in Haier’s main pricing strategy. There are some strategic management accounting tools and management systems to support the implementation of high pricing strategy.
2.1 OEC management-control system
In 1984, Zhang Ruimin, CEO of Haier decided to implement OEC system to the factory. According to the explanation from Wang Yingmin, the HR management director of Haier, the target of OEC system is overall control of everything that every employee finishes on his or her job everyday with a 1% increase over what was done the previous day. Therefore, employees are able to assess their job performance by themselves.
OEC management-control system is based on the market competition, strives to continuously raise the firm’s goal and improve management skills to achieve a sustainable competitive advantage
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 strategy is differentiation and focused differentiation. For example, some products of Haier are designed and manufactured for specific customers. Meanwhile, comparing with sales volume, Haier insists that the customer satisfaction and reputation are more important. The customer loyalty can be strength by high brand value. Thus, to charge higher prices with higher quality products and higher brand value than those of its competitors in Haier’s main pricing strategy. There are some strategic management accounting tools and management systems to support the implementation of high pricing strategy.
2.1 OEC management-control system
In 1984, Zhang Ruimin, CEO of Haier decided to implement OEC system to the factory. According to the explanation from Wang Yingmin, the HR management director of Haier, the target of OEC system is overall control of everything that every employee finishes on his or her job everyday with a 1% increase over what was done the previous day. Therefore, employees are able to assess their job performance by themselves.
OEC management-control system is based on the market competition, strives to continuously raise the firm’s goal and improve management skills to achieve a sustainable competitive advantage