Haier Global Strategy
1. Why was Haier so successful in China?
Since 20 years ago, 1984, Haier was founded and quickly became the largest white goods factory from a little and nearly bankruptcy company. Without a doubt, Haier is very successful in china. As we look through Haier’s history, they have many factors make their success:
1) Good Reputation of high quality:
After Haier was setting up, it began to develop a reputation for its refrigerators. It build up the best quality system and get the highest reputation from customer. The company used quality management system and rigorous standards to develop a strong brand name in China. The implementation of these new quality standards helped Haier to turn a profit and get competitive advantage from the other providers on china market.
2) Growth and diversification:
From 1991, as Haier became the famous refrigerator factory in china, Haier started to expand their successful experience to the other white goods field. It had already developed a brand name for its refrigerators in China and it looked for other products where it could transfer this brand name. Other appliances such as freezers, dishwashers, and microwaves were the expansions because they were most closely associated with refrigerators and it get successful growth in market.
3) Quickly market responsiveness :
In order to meet local market demand and focus on customer specific need, Haier set up the quickly process to response from the requirement of local customer. Make many innovation to development new model of product to ensure the growth and the profit of the company.
4) Best Service experience to customer
By setting up a modern service center in headquarter and regard service as an important part of product, Haier gain the famous reputation and high satisfaction from china market.
2. Was Haier's decision to globalize into developed markets early on a good strategy?
Since the early 1990s, Haier realized that to continue to grow, it needed to expand
Since 20 years ago, 1984, Haier was founded and quickly became the largest white goods factory from a little and nearly bankruptcy company. Without a doubt, Haier is very successful in china. As we look through Haier’s history, they have many factors make their success:
1) Good Reputation of high quality:
After Haier was setting up, it began to develop a reputation for its refrigerators. It build up the best quality system and get the highest reputation from customer. The company used quality management system and rigorous standards to develop a strong brand name in China. The implementation of these new quality standards helped Haier to turn a profit and get competitive advantage from the other providers on china market.
2) Growth and diversification:
From 1991, as Haier became the famous refrigerator factory in china, Haier started to expand their successful experience to the other white goods field. It had already developed a brand name for its refrigerators in China and it looked for other products where it could transfer this brand name. Other appliances such as freezers, dishwashers, and microwaves were the expansions because they were most closely associated with refrigerators and it get successful growth in market.
3) Quickly market responsiveness :
In order to meet local market demand and focus on customer specific need, Haier set up the quickly process to response from the requirement of local customer. Make many innovation to development new model of product to ensure the growth and the profit of the company.
4) Best Service experience to customer
By setting up a modern service center in headquarter and regard service as an important part of product, Haier gain the famous reputation and high satisfaction from china market.
2. Was Haier's decision to globalize into developed markets early on a good strategy?
Since the early 1990s, Haier realized that to continue to grow, it needed to expand