Preview

Haier Taking a Chinese company global

Satisfactory Essays
Open Document
Open Document
901 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Haier Taking a Chinese company global
For external analysis, China experienced growing economic development from late 1980s, which means demand outstripped supply in home appliance industry. Besides, China entered the WTO in 2001. Although Haier was faced with international competence, it also created more opportunities to infuse advanced technology and designs.
For internal analysis, Haier was dedicated to gain competitive advantages in domestic market. To start with, good relationship with government is a good point. Specifically, Haier was a collective enterprise whose ultimate authority was municipal government. It can enjoy the tax benefit at the beginning stage of development. Besides, Haier provided differentiated white goods. Haier is famous for its high-quality products with excellent brand reputation. In comparison with multinationals brand, Haier’s products are closer to Chinese needs and design. Continuous innovation was also taken into consideration to meet customer needs. Even though national and foreign competence was severe, Haier insisted single-brand approach. Haier, unlikely most other Chinese manufactures whose aim is only to export and earn foreign currency, became the pilot of OEM products. Its differentiated products served as protective factors that ensured continued profits. Moreover, diversification is another important element to be successful. From 1992 to 1998, Haier expand through merging with and acquiring other companies to enrich its product lines, such as refrigerator, freezer, air conditioner, and television. Equipped with Haier own management and quality control strategy, the newly expanded factories and subsidiaries maximize profit. Additionally, operational restructure and management change are of vital importance. In order to improve its own key competitive ability, Haier restructured the existing facilities into 7 product divisions in 1998 and improved significantly the company’s feedback speed from the market, reducing operating costs and increasing

You May Also Find These Documents Helpful

  • Good Essays

    With the rapid development of globalization, countries have become increasingly close. That reflects not only in economy, politics but also in culture. The globalization has promoted China to join the WTO. And Chinese companies have played an important role in foreign markets. So next this essay will explain how some Chinese companies achieve success in foreign markets.…

    • 543 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    The international economic landscape has and is dominated by the United States. However a new player is emerging. China over the past couple of years has sprung onto the national scene. These two countries are the top exporters and importers in the world with around $7.5 trillion in goods traded, according to a 2012 WTO study. They are also some of the largest import or export partners between each other trading approximately $536 billion being exchanged between the two countries. As the United States and China move forward into the next couple of years analyzing the past trends will allow for smarter decisions to be made. The research included will be drawn from data around the last 15 years with more accurate data regarding sectors being added in the closer to present we present. Topics covered will be:…

    • 409 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Along with the change in ownership forms, the Chinese economy has grown rapidly over the last twenty years. China's status in the international economic and trading system is also steadily advancing. These achievements have gained international recognition.…

    • 1173 Words
    • 5 Pages
    Good Essays
  • Best Essays

    Haier

    • 3791 Words
    • 16 Pages

    Haier has become one of the top 50 transnational corporations in developing countries. In addition to refrigerators, Haier manufactures a wide range of household appliances including washers, dryers, freezers, microwaves, air conditioners,…

    • 3791 Words
    • 16 Pages
    Best Essays
  • Better Essays

    After 20 years of reform and opening up, China has become a manufacturing powerhouse. Starting from the earliest costume hats, today more and more Chinese enterprises to continuously delivery of products around the world. Anywhere in the world, any corner, large motorcycle, household appliances, small lighters, umbrellas, "China" everywhere, "China price" to discourage competition. Anywhere in the world, can be seen in China, and Chinese people's biggest advantage is price, the price of China's competitors all have to retreat.…

    • 2708 Words
    • 11 Pages
    Better Essays
  • Good Essays

    China entered the World Trade Organization (WTO) in 2001 and immediately experienced rapid growth. China was also experiencing problems with state owned enterprises and large debts. State banks needed radical reforms. Chinese banks did not manage Pension funds properly and subsequently were unable to collect a major portion of loans that made up state owned enterprises. Citigroup took advantage of China 's financial shortcomings and seized the opportunity to expand Citigroup 's services in China by offering investment banking and personal financial planning.…

    • 731 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Haier Global Strategy

    • 725 Words
    • 3 Pages

    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.…

    • 725 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    “China is steadily emerging as a superpower for the next century”.1 In recent years China is becoming a new world power in a few years moved to the United States (exhibit 1). Its economic, production and financial growth is due to its changing economic reforms such as foreign trade and foreign direct investment. China has a presence in most of the world markets and high-tech media such as fine chemicals automotive, and electronics. This development is further supported by advantages such as cost of labor and production scale, aimed at implementing technology strategies.…

    • 1004 Words
    • 3 Pages
    Good Essays
  • Good Essays

    GLT task 1

    • 1163 Words
    • 4 Pages

    Recent advances in technology have created a unified global marketplace for capital and labor. China is one of the largest manufacturers worldwide that have impacted globalization. It has increased China’s trade market which gives them foreign exchange but also allows other cultures some insight into China’s culture. In 1978, Deng Xiaoping established leadership of China. Unlike Mao Zedong, Xiaoping embraced globalization and demanded economic change that he believed would ensure the safety of communist rule. The Chinese government adopted a series of strategically significant policies that addressed the challenge of economic globalization. These policies included economic restructure, speeding up the development of a high technology sector, and transformation of economic growth with proper education and trade development. One policy addressed was the Open Door Policy in 1978 which granted China with equal trade from all countries. “Beginning in 1978, economic reforms cautiously increased China’s economic engagement with the rest of the world, resulting in unprecedented growth rates and pulling hundreds of millions of people out of poverty. The country still faces…

    • 1163 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Haier Swot

    • 3072 Words
    • 13 Pages

    Haier was just found in 1984. At the beginning stage of its business, it mainly produces household refrigerators as the core product. 20 years later, Haier has obtained the leadership position in the Chinese home appliance industry which consists about 21% of market share. More importantly, Haier has become a multinational company and has expanded its business to America and elsewhere Asia. According to sales, Haier was ranked fourth in the major home appliances industry in the world. What are the seasons behind which make Haier creates such an amazing performance for just 20 years? In the followings, it is going to discuss about the comparative competition of Haier in terms of product, manufacturing, supply chain and distribution network, sales channels, warranty and service and management system.…

    • 3072 Words
    • 13 Pages
    Good Essays
  • Good Essays

    The importance of international trade increased dramatically for the US as well as China. The ratio of the sum of exports and imports to GDP approximately doubled from the early 1970s to the mid 2000s for the US. And there is a striking feature that China was involved in about 7% percent of world trade by the mid-2000s. There is no doubt that the international trade have influenced the wage level around the world.…

    • 1252 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Haier S Strategy

    • 5097 Words
    • 32 Pages

    The aim of this research is to analyse and address Strategic Management of Haier from 2010 to…

    • 5097 Words
    • 32 Pages
    Powerful Essays
  • Good Essays

    After China had became a WTO member, consequences turn out unexpectedly. Contrary to the former president Clinton's and supporters' predictions (before the WTO accepted China to join its organization,) the United States keeps consuming goods more and more from China as well as a vast of U.S. jobs loose to China while exporting to China is just a small portion compare to its import (Barker, 2004.)…

    • 851 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    1. What shortcomings do you see in the personnel selection system used in this company? Be thorough and justify your answers.…

    • 312 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Haier

    • 545 Words
    • 3 Pages

    Before we address the problem, we should take a review of what strategies have made Haier such a success. Haier insisted on its high quality products sold at a premium while others are pursuing low price. This strategy is applicable in both China and overseas and has gained Haier great brand reputation. Haier’s process, as stated in the case, is to observe and digest first, and then imitate and finally it can understand and design independently. Also, its differentiation strategy helped the company a lot in success. It once focused on a separate position which is mini machines overseas and resulted in a success. This can be compared to the Honda case illustrated in class when this company first got into America. Haier is an expert at acquisition as well. It knows how to acquire companies with good products but bad management and apply its own managing skills which can turn the company to profitable very quickly. Other crucial factors contribute to Haier’s success include its sufficient customer services and strategy of setting up multinational brand abroad instead of simply exporting in China. These not only boost Haier’s profit but also gain Haier good reputation.…

    • 545 Words
    • 3 Pages
    Good Essays