Haier: Taking a chinese company global in 2011Ilaria Fiore
Corporate strategy for HAIER business case. This presentation is based exclusively on informations and data provided in Harvard Business School's case study "Haier: Taking a chinese company global in 2011" and Wikipedia.
The presentation provides information about Haier, evaluates the situation, problems and opportunities of the company; then it describes the possible options avaiable to Haier and selects the best, according to the group's ideas.
Wal-Mart has been able to sustain its competitive advantage and superior performance over the years through several factors:
1) Efficient distribution capabilities and low-cost partnerships with suppliers
2) Advanced data collection and analysis to improve demand forecasting
3) A customer-oriented workforce culture focused on low prices and continuous improvement
4) Maintaining everyday low prices (EDLP) to increase customer satisfaction and loyalty
To continue this success, Wal-Mart should focus on cost leadership through large scale operations and private label brands, address public relations issues, and enhance worker benefits to protect its reputation.
Siebel System: Anatomy of a Sale, Part 1Anant Lodha
Gregg Carman's job was to serve financial services clients in the New England region, including FleetBoston, Siebel's largest client. Carman was negotiating a $2.1 million deal with Quick & Reilly, a stockbroker acquired by FleetBoston. After the acquisition, Carman had to decide whether to continue supporting Quick & Reilly or focus on FleetBoston's wishes. The document discusses Siebel's goals, products, partnerships, and approach to ensuring customer satisfaction. It also evaluates Carman's interactions with potential customers from Quick & Reilly.
Starbucks was facing declining customer satisfaction due to perceived issues like prioritizing profits over experience and slower service times. While it was highly successful initially by focusing on quality coffee and atmosphere, the brand was seen as less trendy and partners were providing unsatisfactory service. It is recommended that Starbucks invest $40 million to improve partner training and speed of service to convert satisfied into loyal customers. Converting just 46 more customers per store per day to highly satisfied would allow the investment to break even.
The document discusses the Microfridge product, which combines a refrigerator, freezer, and microwave. It is targeted at institutional living situations like colleges, military bases, and hotels/motels. The main markets in 1994 were colleges (55% of revenue), military (25%), and motels (18%). Microfridge faced medium competition but had patent protection. It acquired another company and replaced refrigerators with Microfridge units. While using two suppliers reduced costs, it created compatibility issues. Microfridge planned to focus on new "home away from home" products, rapidly increase sales, get $4M in equity, and repay debt to withstand future competition. Recommendations included innovating for new markets, focused product development, and exploring new
Manzana Insurance's Fruitvale branch is experiencing declining profits due to high turnaround times, uneven workload distribution, rising late renewals, increased renewal losses, inconsistent departmental priorities, and outdated completion time standards. This has allowed competitor Golden Gate to capture more market share by announcing a one-day turnaround time. Recommendations include revising how turnaround time is calculated using mean times rather than outdated standards, balancing workloads, prioritizing renewals, standardizing departmental processes, and potentially automating parts of the underwriting process.
- Apex Corporation is facing problems with its organizational structure including informality, lack of structure and financial planning, and increasing customer complaints.
- The document evaluates changing to a circular, functional, or divisional structure.
- It recommends a divisional structure to improve accountability, budgeting, planning and focus on financial targets while balancing control from upper management and freedom from lower management.
Dana Wheeler is preparing recommendations for The Fashion Channel's new segmentation and positioning strategy to strengthen its competitive position against main rivals Lifetime and CNN. Three scenarios are suggested: 1) Targeting multiple segments including Fashionistas, Planners & Shoppers and Situationalists with a 20% rating increase but 10% CPM decrease. 2) Targeting just Fashionistas with a 20% rating decrease but 75% CPM increase and $15M in new programming. 3) Targeting Fashionistas and Planners & Shoppers with a 20% rating increase and 25% CPM increase requiring $20M in new programming. Scenario 3 is estimated to generate the highest net income of $168.8M
Haier: Taking a chinese company global in 2011Ilaria Fiore
Corporate strategy for HAIER business case. This presentation is based exclusively on informations and data provided in Harvard Business School's case study "Haier: Taking a chinese company global in 2011" and Wikipedia.
The presentation provides information about Haier, evaluates the situation, problems and opportunities of the company; then it describes the possible options avaiable to Haier and selects the best, according to the group's ideas.
Wal-Mart has been able to sustain its competitive advantage and superior performance over the years through several factors:
1) Efficient distribution capabilities and low-cost partnerships with suppliers
2) Advanced data collection and analysis to improve demand forecasting
3) A customer-oriented workforce culture focused on low prices and continuous improvement
4) Maintaining everyday low prices (EDLP) to increase customer satisfaction and loyalty
To continue this success, Wal-Mart should focus on cost leadership through large scale operations and private label brands, address public relations issues, and enhance worker benefits to protect its reputation.
Siebel System: Anatomy of a Sale, Part 1Anant Lodha
Gregg Carman's job was to serve financial services clients in the New England region, including FleetBoston, Siebel's largest client. Carman was negotiating a $2.1 million deal with Quick & Reilly, a stockbroker acquired by FleetBoston. After the acquisition, Carman had to decide whether to continue supporting Quick & Reilly or focus on FleetBoston's wishes. The document discusses Siebel's goals, products, partnerships, and approach to ensuring customer satisfaction. It also evaluates Carman's interactions with potential customers from Quick & Reilly.
Starbucks was facing declining customer satisfaction due to perceived issues like prioritizing profits over experience and slower service times. While it was highly successful initially by focusing on quality coffee and atmosphere, the brand was seen as less trendy and partners were providing unsatisfactory service. It is recommended that Starbucks invest $40 million to improve partner training and speed of service to convert satisfied into loyal customers. Converting just 46 more customers per store per day to highly satisfied would allow the investment to break even.
The document discusses the Microfridge product, which combines a refrigerator, freezer, and microwave. It is targeted at institutional living situations like colleges, military bases, and hotels/motels. The main markets in 1994 were colleges (55% of revenue), military (25%), and motels (18%). Microfridge faced medium competition but had patent protection. It acquired another company and replaced refrigerators with Microfridge units. While using two suppliers reduced costs, it created compatibility issues. Microfridge planned to focus on new "home away from home" products, rapidly increase sales, get $4M in equity, and repay debt to withstand future competition. Recommendations included innovating for new markets, focused product development, and exploring new
Manzana Insurance's Fruitvale branch is experiencing declining profits due to high turnaround times, uneven workload distribution, rising late renewals, increased renewal losses, inconsistent departmental priorities, and outdated completion time standards. This has allowed competitor Golden Gate to capture more market share by announcing a one-day turnaround time. Recommendations include revising how turnaround time is calculated using mean times rather than outdated standards, balancing workloads, prioritizing renewals, standardizing departmental processes, and potentially automating parts of the underwriting process.
- Apex Corporation is facing problems with its organizational structure including informality, lack of structure and financial planning, and increasing customer complaints.
- The document evaluates changing to a circular, functional, or divisional structure.
- It recommends a divisional structure to improve accountability, budgeting, planning and focus on financial targets while balancing control from upper management and freedom from lower management.
Dana Wheeler is preparing recommendations for The Fashion Channel's new segmentation and positioning strategy to strengthen its competitive position against main rivals Lifetime and CNN. Three scenarios are suggested: 1) Targeting multiple segments including Fashionistas, Planners & Shoppers and Situationalists with a 20% rating increase but 10% CPM decrease. 2) Targeting just Fashionistas with a 20% rating decrease but 75% CPM increase and $15M in new programming. 3) Targeting Fashionistas and Planners & Shoppers with a 20% rating increase and 25% CPM increase requiring $20M in new programming. Scenario 3 is estimated to generate the highest net income of $168.8M
Cisco implemented Oracle's ERP software to address deteriorating legacy systems. A 100-person team selected Oracle over other vendors. The implementation used rapid prototyping through "conference room pilots" to configure the software for Cisco's needs. While go-live faced hardware and capacity issues, strong vendor support stabilized the system within 3 months, concluding a successful ERP implementation.
- Edgar Newell started Newell Company in 1902 through the acquisition of a curtain rod manufacturer.
- Dan Ferguson crafted a growth strategy of acquiring companies to expand Newell's product line.
- In the late 1990s, Newell faced challenges from increased customer buying power and consolidation in the retail industry.
- Newell acquired Calphalon and Rubbermaid but integrating the large Rubbermaid presented challenges due to its size, reputation, and operations that could impact Newell's strategy.
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
Clique Pens Case Study by Harward Mba Center. This paper introduces possible solutions and recommendations by MSc. Marketing student - Allazov Kamal. (https://allazov.org/)
American Connector Company (ACC) faces competitive threats from Denso Japan Connector's (DJC) manufacturing strategies of standardized, continuous flow production and lower costs. DJC utilizes older, paid-off technology and achieves 100% capacity through 24/7 production, while ACC uses flexible batch processing at only 50-85% capacity. If DJC opens a US plant, it could attract ACC customers with even lower costs from standardized products and more efficient delivery. To compete, ACC must improve technology, productivity, utilization and standardization while reducing inventory, depreciation and other costs.
Dominion Motors faces a challenge from an engineering report that could reduce demand for their motors. Their alternatives are to lower prices on a larger motor, reengineer smaller motors to higher torque, or build a new smaller motor. Building a new 5 HP motor allows them to be prepared if the report is accepted while avoiding actions that acknowledge the report prematurely. They will also lobby regulators and the engineer conducting the report to delay its impact and independently verify its findings.
This presentation contains the following for Eileen Fisher, Retail Fashion Brand:
Problem Statement
Decisions to be Made
Company Introduction
POP and POD
Competitive Advantage
Brand Elements
Re-positioning Strategy
Keller Model
The Walt Disney Company and Pixar Inc.: To Acquire or Not to AcquireEric Moon
This document discusses Pixar and Disney's potential acquisition of Pixar. It provides overviews of both companies and their capabilities. Pixar has strong animation and storytelling capabilities as well as a culture that promotes creativity and collaboration. Disney lacks these capabilities and has a more hierarchical culture. The document considers alternatives to acquisition like a strategic alliance but finds acquisition makes the most sense for Disney's growth given Pixar is a near-perfect strategic fit. However, risks include integrating the different cultures and financial risks around stock dilution from the deal. In the end, Disney's CEO believes more can be accomplished through full ownership than a joint venture.
Case Analysis |Altius Golf and the Fighter Brand|Anahit Babayan
Questions covered.
1. If Altius implements the Elevate strategy what are the risks to the brand and how can they be managed?
2. What sales result would you expect for each item in the line if Elevate is introduced?
The Tata Group, an Indian multinational conglomerate, adopted a strategy of international expansion through global acquisitions under the leadership of Ratan Tata. As several Tata companies faced challenges from domestic market saturation and regulations in the 1990s, the group pursued acquisitions to diversify and achieve growth in foreign markets. Major Tata acquisitions included Tetley Tea, Corus Steel, Jaguar Land Rover, and several hotel brands. These global acquisitions transformed the Tata Group into one of the largest and most diverse international business groups in India.
The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
The document analyzes the motorcycle industry and Ducati's position within it, discussing key segments, customers, technology, manufacturing, distribution channels, and competitors like Harley Davidson. It describes Ducati's turnaround under new leadership, focusing on improving products, engineering, and branding to grow market share beyond ultra-high performance bikes. Finally, it considers whether Ducati should expand into new segments like cruisers or maintain focus on its core high-performance brand and customers.
In August 2000, P&G introduced one of its kind product Crest Whitestrips, readily available online and through dentist offices
P&G claims that the new products are 10 times more effective than the Colgate Tartar Control Whitening Within two years P&G captured more than 80% of the share market. Colgate made a come back in August 2002 with Simply White. Colgate’s USP was that it focused on convenience and lower price. One month after introduction Simply White captures half the market with Crest Whitestrips losing 50% of its market share.
Aqualisa Quartz - Simply A Better Shower (HBR Case Study)Arjun Parekh
The document discusses Aqualisa's Quartz shower valve which was intended to improve on existing shower technologies but struggled initially. It provides details on the UK shower market, Aqualisa's distribution channels, and the development of the Quartz valve. While the Quartz valve had technological advantages, plumbers were wary of innovation and it was priced too high. As a result, few units sold in the first few months through trade shops and showrooms.
Group 10 presented on Alphabet Inc. Key points include:
- Alphabet was created in 2015 through the restructuring of Google.
- The restructuring allowed Google to own diverse subsidiaries under one corporate structure to create more value.
- Alphabet uses a decentralized structure to improve productivity but it can lose control and create different agendas.
- Alphabet's corporate governance, including dual class shares, is controversial as it gives insiders disproportionate voting power but protects entrepreneurial management.
Komatsu Ltd. was established in 1921 as a mining equipment producer and later expanded into agricultural machinery and military equipment. It became dominant in the Japanese construction equipment market with over 50% share. However, its market share declined after competitors like Caterpillar entered with partnerships. The case analysis documents Komatsu's evolution over decades under different presidents, as it struggled with competition but also diversified and grew its non-construction businesses through strategies like total quality control, expanding product lines, and establishing autonomous international bases. By the 1990s under Katada's leadership, non-construction sales accounted for 50% of Komatsu's business.
Zara is a clothing brand known for fast fashion. It was founded in 1963 in Spain and opened its first store in 1975. Since then, Zara has expanded globally and now has over 2,000 stores in 96 countries. Zara's success is largely due to its ability to design and produce clothing in only two weeks in order to quickly respond to the latest fashion trends. It focuses on rapid production in small quantities, frequent store replenishments, and using its stores as a way to get customer feedback. Zara's core competencies include its vertical integration of design, production, and sales as well as its ability to quickly recreate fashion.
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Nucor is considering building a new steel mill. The CEO is concerned about committing to the project given resource constraints and whether CSP technology will remain viable long-term. An analysis of Nucor's strengths in administration, employee relations and operations was presented. Weaknesses, opportunities, and threats in the US steel market were also reviewed. Nucor will decide on the project based on criteria requiring 100% commitment of previous capital, 25% ROA within 5 years, and maintaining debt-equity below 30%.
Cunard Line Ltd : Integrated marketing communicationSwarupa Rani Sahu
Cunard Line faces challenges in integrating its marketing communications across its luxury cruise brands as the industry and customer tastes change. It must balance strategic branding with tactical campaigns while allocating budgets across advertising, direct mail, brochures, and promotions. An organizational realignment by ship type risks diluting the iconic Cunard brand and undermining past integration efforts. Maintaining a unified brand image while distinguishing multiple ship offerings poses ongoing risks to this legacy cruise line.
Classic pen company activity based costingHarish B
Classic Pen Company is analyzing its cost accounting system using activity-based costing to better understand profitability. Previously, all overhead costs were allocated based on direct labor, but ABC analysis identified drivers like setup time and production runs. This showed that red and purple pens have higher costs than indicated previously due to more setups. ABC cost per unit for red and purple exceeds their selling price, suggesting price increases are needed to improve profitability for those products.
This document provides an overview of exploratory research conducted on the air conditioning industry in Pakistan. It introduces Haier as a major brand in the market and analyzes its competitors including Waves, Cool Industries, and PEL. Demographic and psychographic research targeted higher income consumers in SEC A. Findings showed people use AC 8-10 hours daily and purchase decisions are made primarily by males. Haier was the preferred brand for its price and performance compared to alternatives. A print ad concept and media plan are proposed to promote Haier air conditioners.
Haier is a Chinese appliance manufacturer that was founded in 1984 and has become the top appliance brand in China and fourth largest in the world. The company was started by Zhang Ruimin who took over a failing refrigerator factory. Through a focus on quality and technology improvements, Haier was able to become the dominant brand in China. In the late 1990s and 2000s, Haier pursued an international expansion strategy, first focusing on difficult markets like Europe and the US before expanding globally. Through acquisitions and establishing local operations, Haier has been able to grow significantly internationally and now generates around 30% of revenue overseas.
Cisco implemented Oracle's ERP software to address deteriorating legacy systems. A 100-person team selected Oracle over other vendors. The implementation used rapid prototyping through "conference room pilots" to configure the software for Cisco's needs. While go-live faced hardware and capacity issues, strong vendor support stabilized the system within 3 months, concluding a successful ERP implementation.
- Edgar Newell started Newell Company in 1902 through the acquisition of a curtain rod manufacturer.
- Dan Ferguson crafted a growth strategy of acquiring companies to expand Newell's product line.
- In the late 1990s, Newell faced challenges from increased customer buying power and consolidation in the retail industry.
- Newell acquired Calphalon and Rubbermaid but integrating the large Rubbermaid presented challenges due to its size, reputation, and operations that could impact Newell's strategy.
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
Clique Pens Case Study by Harward Mba Center. This paper introduces possible solutions and recommendations by MSc. Marketing student - Allazov Kamal. (https://allazov.org/)
American Connector Company (ACC) faces competitive threats from Denso Japan Connector's (DJC) manufacturing strategies of standardized, continuous flow production and lower costs. DJC utilizes older, paid-off technology and achieves 100% capacity through 24/7 production, while ACC uses flexible batch processing at only 50-85% capacity. If DJC opens a US plant, it could attract ACC customers with even lower costs from standardized products and more efficient delivery. To compete, ACC must improve technology, productivity, utilization and standardization while reducing inventory, depreciation and other costs.
Dominion Motors faces a challenge from an engineering report that could reduce demand for their motors. Their alternatives are to lower prices on a larger motor, reengineer smaller motors to higher torque, or build a new smaller motor. Building a new 5 HP motor allows them to be prepared if the report is accepted while avoiding actions that acknowledge the report prematurely. They will also lobby regulators and the engineer conducting the report to delay its impact and independently verify its findings.
This presentation contains the following for Eileen Fisher, Retail Fashion Brand:
Problem Statement
Decisions to be Made
Company Introduction
POP and POD
Competitive Advantage
Brand Elements
Re-positioning Strategy
Keller Model
The Walt Disney Company and Pixar Inc.: To Acquire or Not to AcquireEric Moon
This document discusses Pixar and Disney's potential acquisition of Pixar. It provides overviews of both companies and their capabilities. Pixar has strong animation and storytelling capabilities as well as a culture that promotes creativity and collaboration. Disney lacks these capabilities and has a more hierarchical culture. The document considers alternatives to acquisition like a strategic alliance but finds acquisition makes the most sense for Disney's growth given Pixar is a near-perfect strategic fit. However, risks include integrating the different cultures and financial risks around stock dilution from the deal. In the end, Disney's CEO believes more can be accomplished through full ownership than a joint venture.
Case Analysis |Altius Golf and the Fighter Brand|Anahit Babayan
Questions covered.
1. If Altius implements the Elevate strategy what are the risks to the brand and how can they be managed?
2. What sales result would you expect for each item in the line if Elevate is introduced?
The Tata Group, an Indian multinational conglomerate, adopted a strategy of international expansion through global acquisitions under the leadership of Ratan Tata. As several Tata companies faced challenges from domestic market saturation and regulations in the 1990s, the group pursued acquisitions to diversify and achieve growth in foreign markets. Major Tata acquisitions included Tetley Tea, Corus Steel, Jaguar Land Rover, and several hotel brands. These global acquisitions transformed the Tata Group into one of the largest and most diverse international business groups in India.
The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
The document analyzes the motorcycle industry and Ducati's position within it, discussing key segments, customers, technology, manufacturing, distribution channels, and competitors like Harley Davidson. It describes Ducati's turnaround under new leadership, focusing on improving products, engineering, and branding to grow market share beyond ultra-high performance bikes. Finally, it considers whether Ducati should expand into new segments like cruisers or maintain focus on its core high-performance brand and customers.
In August 2000, P&G introduced one of its kind product Crest Whitestrips, readily available online and through dentist offices
P&G claims that the new products are 10 times more effective than the Colgate Tartar Control Whitening Within two years P&G captured more than 80% of the share market. Colgate made a come back in August 2002 with Simply White. Colgate’s USP was that it focused on convenience and lower price. One month after introduction Simply White captures half the market with Crest Whitestrips losing 50% of its market share.
Aqualisa Quartz - Simply A Better Shower (HBR Case Study)Arjun Parekh
The document discusses Aqualisa's Quartz shower valve which was intended to improve on existing shower technologies but struggled initially. It provides details on the UK shower market, Aqualisa's distribution channels, and the development of the Quartz valve. While the Quartz valve had technological advantages, plumbers were wary of innovation and it was priced too high. As a result, few units sold in the first few months through trade shops and showrooms.
Group 10 presented on Alphabet Inc. Key points include:
- Alphabet was created in 2015 through the restructuring of Google.
- The restructuring allowed Google to own diverse subsidiaries under one corporate structure to create more value.
- Alphabet uses a decentralized structure to improve productivity but it can lose control and create different agendas.
- Alphabet's corporate governance, including dual class shares, is controversial as it gives insiders disproportionate voting power but protects entrepreneurial management.
Komatsu Ltd. was established in 1921 as a mining equipment producer and later expanded into agricultural machinery and military equipment. It became dominant in the Japanese construction equipment market with over 50% share. However, its market share declined after competitors like Caterpillar entered with partnerships. The case analysis documents Komatsu's evolution over decades under different presidents, as it struggled with competition but also diversified and grew its non-construction businesses through strategies like total quality control, expanding product lines, and establishing autonomous international bases. By the 1990s under Katada's leadership, non-construction sales accounted for 50% of Komatsu's business.
Zara is a clothing brand known for fast fashion. It was founded in 1963 in Spain and opened its first store in 1975. Since then, Zara has expanded globally and now has over 2,000 stores in 96 countries. Zara's success is largely due to its ability to design and produce clothing in only two weeks in order to quickly respond to the latest fashion trends. It focuses on rapid production in small quantities, frequent store replenishments, and using its stores as a way to get customer feedback. Zara's core competencies include its vertical integration of design, production, and sales as well as its ability to quickly recreate fashion.
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Nucor is considering building a new steel mill. The CEO is concerned about committing to the project given resource constraints and whether CSP technology will remain viable long-term. An analysis of Nucor's strengths in administration, employee relations and operations was presented. Weaknesses, opportunities, and threats in the US steel market were also reviewed. Nucor will decide on the project based on criteria requiring 100% commitment of previous capital, 25% ROA within 5 years, and maintaining debt-equity below 30%.
Cunard Line Ltd : Integrated marketing communicationSwarupa Rani Sahu
Cunard Line faces challenges in integrating its marketing communications across its luxury cruise brands as the industry and customer tastes change. It must balance strategic branding with tactical campaigns while allocating budgets across advertising, direct mail, brochures, and promotions. An organizational realignment by ship type risks diluting the iconic Cunard brand and undermining past integration efforts. Maintaining a unified brand image while distinguishing multiple ship offerings poses ongoing risks to this legacy cruise line.
Classic pen company activity based costingHarish B
Classic Pen Company is analyzing its cost accounting system using activity-based costing to better understand profitability. Previously, all overhead costs were allocated based on direct labor, but ABC analysis identified drivers like setup time and production runs. This showed that red and purple pens have higher costs than indicated previously due to more setups. ABC cost per unit for red and purple exceeds their selling price, suggesting price increases are needed to improve profitability for those products.
This document provides an overview of exploratory research conducted on the air conditioning industry in Pakistan. It introduces Haier as a major brand in the market and analyzes its competitors including Waves, Cool Industries, and PEL. Demographic and psychographic research targeted higher income consumers in SEC A. Findings showed people use AC 8-10 hours daily and purchase decisions are made primarily by males. Haier was the preferred brand for its price and performance compared to alternatives. A print ad concept and media plan are proposed to promote Haier air conditioners.
Haier is a Chinese appliance manufacturer that was founded in 1984 and has become the top appliance brand in China and fourth largest in the world. The company was started by Zhang Ruimin who took over a failing refrigerator factory. Through a focus on quality and technology improvements, Haier was able to become the dominant brand in China. In the late 1990s and 2000s, Haier pursued an international expansion strategy, first focusing on difficult markets like Europe and the US before expanding globally. Through acquisitions and establishing local operations, Haier has been able to grow significantly internationally and now generates around 30% of revenue overseas.
Haier is a major global appliance brand that introduced the first detergent-free washing machine in 2003. These machines use electrolysis and alkaline/acid ions to clean clothes without detergent. They can save consumers money on detergent and reduce environmental impact. Haier aims to market these "nature wash" machines to environmentally-conscious consumers aged 25-34, especially married or engaged women with a college education and income over $40,000.
Haier presentation Taking Chinese company GlobalAniqa Komal
Haier is a Chinese appliance manufacturer that was founded in 1984 and has become the largest in China and 4th largest globally. The company was started by Zhang Ruimin who took over a failing refrigerator factory. Under his leadership, Haier focused on quality, diversified its product range through acquisitions, and has pursued international expansion aggressively since 1999. Key to Haier's success has been its organizational culture that emphasizes problem solving, innovation driven by customer needs, and rapid product development. The company also stresses social responsibility through various charitable initiatives. To sustain its growth, Haier should continue emphasizing its brands abroad while innovating and promoting its status as a Chinese company at home.
Haier uses a distributed performance management system that combines several approaches:
1) The OEC system tracks overall performance, control, and clearance.
2) Key principles include the 80/20 rule and a "race track" model of tracking profit/loss.
3) Incentives are tied to target achievement. Notice boards and on-site training are also used.
4) Managers have job role-based performance management.
While expansion poses limitations, Haier's system was well-executed and developed to fit its needs.
Cultural Change at Haier is a presentation about managing and changing culture at the Chinese appliance manufacturer Haier. [1] It discusses Haier transitioning from a "guanxi culture" focused on relationships and harmony to a more individualistic culture with internal competition and high-quality products. [2] To do so, Haier introduced initiatives like "footprints" and "public smileys" to provide feedback and encourage employees to critically analyze poor performance or voluntarily stand up if underperforming. [3] This pushed employees outside their comfort zones but helped shift Haier's culture towards one focused more on quality, growth, and individual performance.
Haier targets young families in China and globally. It aims to meet consumers' needs for identity, social belonging, and fresh food storage through refrigerators. While Haier has strong market share in China and globally, opportunities exist to address price sensitivity and expand product lines. Haier's marketing mix includes competitive refrigerators, varied pricing, brand and relationship promotion strategies, and global distribution to employ differentiation and market development strategies.
The document discusses marketing strategies for microwave ovens in India. It provides background on the history of microwave ovens and how Indian and Western cooking styles differ. Key differences are that Indian cooking is more complex due to intricate spice mixtures while Western cooking is simpler. The document also analyzes customer perceptions and preferences, the current market size and projections, and recommends a marketing mix tailored for India including product design, appropriate pricing, placement in major cities first, and promotional strategies.
The document provides information on LG Electronics and Whirlpool Corporation. It discusses their history, global operations, products, competitors, financial information, visions and goals. It also describes how both companies use ERP systems like Oracle and SAP to manage their global businesses and supply chains. LG Electronics uses Oracle ERP in 6 countries while Whirlpool relies on SAP to handle orders from around the world. The presentation evaluates how ERP systems help the companies operate more efficiently on a global scale.
This document summarizes a study report on the supply chain operations of Haier appliances' warehouse in Hyderabad. The main objectives of the study were to understand the warehouse's supply chain operations, cost control measures, distribution network, and inbound/outbound operations. It also aimed to analyze the role of third-party logistics in Haier's warehouse operations. Key findings include that Haier uses a third-party for transportation, warehouse management, and staffing. The warehouse supplies dealers across Telangana based on sales planning. Suggestions focus on optimizing warehouse space, reducing truck detention times, and controlling inter-branch stock transfers.
Haier is a Chinese appliance manufacturer that became the largest in China through a focus on high quality and services. It has since expanded globally through non-traditional markets like developed countries, niche products, and gradually establishing owned manufacturing and sales networks rather than relying on joint ventures. Haier aims for equal revenue from China, exports from China, and overseas production and sales. Strategic frameworks show Haier develops competitive advantages through R&D, brands strength, and responsiveness allowing it to globalize and grow internationally.
Whirlpool Corporation's vision is for every home everywhere to have their appliances with pride, passion and performance. Their mission is for everyone to passionately create loyal customers for life. Whirlpool is the world's leading manufacturer and marketer of major home appliances, manufacturing in 13 countries and marketing in over 170 countries under major brand names. Whirlpool is also the principal supplier to Sears of many appliances marketed under the Kenmore brand name.
Haier in India - Building Presence in a Mass Market Beyond ChinaAmmar Matter
Building Presence in a Mass Market Beyond China - Hair in India
a presentation that analysis the activities done by Haier the appliance Company in its globalization strategy
1Haier’s survival strategy to compete with world giants.docxfelicidaddinwoodie
1
Haier’s survival strategy to compete
with world giants
Abstract:
The aim of this paper is to analyze the internationalization of Chinese companies; in particular, the very successful
case - the Haier Group. This paper focuses on using a case study methodology to analyze Haier's survival strategy
to compete with world giants. The following issues have been addressed to meet the respective objects: first, the
Uppsala stages model and Haier's internationalization process; secondly, analysis and evaluation of Haier's
strategic internationalization, using Dawar and Frost's survival strategy theory to compare with Haier's
internationalization strategy; and finally, to explore the motives underlying Haier's entry strategy and development.
Keywords:
Internationalization, Uppsala Stages Model, Exporting, Foreign Direct Investment, Joint Venture
Introduction
Since China’s WTO entry, the Chinese household electrical appliances industry, as well as
other industries, is facing the reality of a globalising world economy and multi-global
challenges, such as the environmental challenge, the competitive challenge, the collaborative
challenge, the organisational challenge, the worldwide learning challenge and the
management challenge (Bartlett and Gholshal, 2000).
The Haier Group has set up a successful example in facing these realities and challenges.
Competing with the global giants, Haier’s strategy mainly concentrates on their constant
efforts towards internationalisation.
In the past decades China was an insignificant player in international business. China is an
underdeveloped country, a major FDI recipient and a late mover, with limited technological
innovative capabilities. As for the Chinese internationalisation processes, little research has
been conducted until now-- the so-called new era of accelerated internationalisation. This may
be mainly because of China’s particular history and geographical situation.
The aim of this paper is to apply a case-study approach to assess the relevance of
internationalisation models and theories in analysing Haier’s specific empirical evidence.
The Uppsala stages model and Haier’s
internationalisation process
FDI: foreign direct investment
2
The basic assumption of the Uppsala model is that companies are expected to follow a
sequence from low to high commitment modes of operation and enter new markets with
successively greater psychic distance. The stages are: No regular export activities—Export via
independent representatives—Establishment of an overseas sales subsidiary—Overseas
production (Andersen, 1993). Haier’s internationalisation process generally complies with this
model in two distinguishing aspects: exporting and FDI.
Exporting
QGRF, predecessor of the Haier Group, started to export in 1986.From the establishment of
the Haier Group in 1992 till the year 2000, Haier’s total exporting ...
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Haier: Taking a Chinese Company Global
1. Global Market Strategies
: Taking a Chinese Company Global
Team Members: Morteza Javadinia
Tor Halvorsrud
Aliasghar Bahoo
Torodi
Nathanael Bruchez
USI
Lecturer: Johannes M Pennigns
2. Agenda
Case Overview
Haier Strategy in Chinese Market
Haier’s International Expansion Approaches
6 Frameworks / Tools (Porter, Yip, Dunning, BCG,
PLC, Integration/Responsiveness Grids)
Discussion
3. Case Overview
• Haier Group is a multinational company specializing in the production of
home appliances and consumer electronics.
• Originated in 1984, When founder and CEO Zhang Ruimin took over
failing refrigerator factory in Quindao, China.
4. Case Overview
• Zhang Ruimin took over in 1984, when it was approximately 300 refrigerator factories in china.
• Most of them produced poor quality products.
• Zhang saw this, and therefore went to the other direction : Focusing on high quality products and
service.
• Went into a JV with among others German manufacturer Liebherr which had technical expertize in
refrigerators.
• Had a high focus on becoming a «first class brand» through large scale operations.
• In 1992, After becoming Chinas leading refrigerator manufacturer, Haier Group started to look into
other similar businesses. Acquired companies with poor management and implemented new
manag. With same focus on quality and service.
• Went public in 1993, at the Shanghai stock Exchange.
• 1997, Started to target the rural areas of china.
• At the same time, they started to diversify their product line.
• 2004, became the number one appliance company in China.
• At the same time, experiencing stronger and stronger competition from domestic and multinational
companies who tried to break into the market.
5. Case Overview
• By 2004, the Haier Group was the largest home appliance maker, holding
approx.. 30% of the white goods market (third globally)
• They were the second-largest refrigerator manufacturer in the world, and
had a growing presence in the black goods market.
• At this stage, with domestic market success, they were considering going
abroad and become a multinational brand.
• But could they do this without loosing their position in china?
6. Strategy – Chinese
Market
• Between 1989 and 1996, reduction from 100 to 20 refrigerators
producers -> more competitive market.
• China entered the WTO in 2001 -> new competitors, multinationals.
Difficult start for them, for several reasons.
• That said, the multinationals reached 31% of refrigerators market share
in 2002, local companies being losing market share rapidly.
7. Strategy – Chinese
Market
Haier’s competitive advantages in the Chinese
market
• Haier is known in China for its high quality products ; It has therefore a
very good brand reputation.
• Closer to chinese customers (design, needs) in comparison with
multinationals.
• High investment in R&D (5-7% of revenues) and thus new products every
year, very innovative.
• High market responsiveness, focusing on meeting customers needs ; 42
distribution centers in China operating as sales companies.
8. Strategy – Chinese
Market
• High level of services, with better after-sales service than competitors ; According
to the customers, one of the biggest advantages of Haier.
• Very good distribution channels/network, with «Haier Logistics» ; Advantage over
multinationals, since establishing a logistics network in China is complicated.
• Staff cheaper than multinational competitors.
• That said -> these strengths in distribution and service networks, and the superior
knowledge of the domestic market may not last forever! They are provisory
advantages, since multinationals have already had some successes, contracting
people who understand the Chinese market, buying sales channels and services
Haier’s competitive advantages in the Chinese
market
9. Company Goals
Haier Three Third Goals:
1/3 Revenue from goods produced and sold in China
1/3 Revenue from goods produced in China and sold overseas
1/3 Revenue from goods produced and sold overseas
10. Direct Export
Joint Venture , Technical alliance
Foreign Direct Investment (FDI)
Research and Development Park / New establishment
Expor
t
Contractu
al
Investment
Entry Strategy
for International
Markets
Strategy – Global Market
11. Strategy – Global Market
• Entry Mode: Joint Venture with multinational brands
(1990s)
• In 1995 Haier become first company which engaged in FDI
• In 1997 lunched first European manufacturer based in
Belgrade through JV.
• Until 1999 Haier continued OEM production for multinational
companies
• After 1999 start selling under Haier Brand
12. Strategy – Global Market
Three Main Global Expansion Strategies:
1 - Non-traditional expansion ➔ Focus on difficult market first
• “We chose the developed countries first because the
requirements of both customers and retailers are very tough and
not easy to meet”
• High Prestige
• Being well-known in developed markets can enhance market
penetration ability in emerging markets
• Competition in developed markets can guarantee the success in
emerging markets
13. Three Main Global Expansion Strategies:
2 – Begin with niche products
• “When we entered the U.S market, we found that nobody was
making competitive refrigerators for students or for offices.”
• Starting with mini-fridge , compact refrigerators
• “After we were successful in the niche products, then we started
to introduce regular products to the U.S market.”
Strategy – Global Market
14. Three Main Global Expansion Strategies:
3 – Staff with locals
• When entering a new market “ the first stage is to use the right
people to establish the right structure.”
• Why local staff: Local people know the Local market
Local people have Local thinking to satisfy the
needs of customer
• BUT ➔ Not all the locals are good for our brand.
• Goal ➔ “ Haier in each country be the Haier that they created”
Haier has to be perceived as a local brand.
Strategy – Global Market
15. Haier International Division: Joint Ventures on 5 continent
• The America
• Europe
• The Middle-East
• South Asia
• East Asia
Why they Succeeded : Focus on customer's need
1) Product Differentiation ➔ Importance of
R&D
2) Response Speed➔ Shortening the new
products production time (From Idea to
Strategy – Global Market
16. The America:
• 1994 JV with Welbilt
• 1999 Haier America
• Employing American staff
• Establishing industrial park in South Carolina (To build brand reputation ,
being quality oriented)
• Focus on niche which enabled Haier to avoid competition with GE,
Whirlpool and ..Haier Europe:
• 1990 JV with some brands in UK, Germany and France
• 2000 HQ in Varese – Italy
• Employing former sales executives of Italy’s Merloni as a local
experienced staff
• Europe and America were similar in terms of size and degree of
developments
Strategy – Global Market
17. Haier India:
• 1999 JV with Indian appliance firm (Fedder Lloye Corp.)
• Establishing refrigerator and R&D Center
• 2004 alliance with Whirlpool and Voltas to produce refrigerator and Air
Conditioner
• Main Challenge in India ➔ Hard to find top chain store
• “In United States you can easily find the top ten chain stores but in
India you cannot find them”
Strategy – Global Market
19. Porter What’s Strategy
Framework
Haier Activities System:
Understanding of Markets
Outstanding Product quality
Sourcing & Distribution network in
place
Development of Global brand
JIT delivery (reducing inventory
cycle)
Haier Competitive Advantages:
High product quality
Differentiation in products
and services (Thanks to high
investment in R&D)
Single brand management
Quickly response to shifts in market
20. Yip Globalization drivers
Competitive Drivers
Difficult first, Easy later (more
competitors)
Exports
Government Drivers
Entering to WTO
Exchange Currency
Market Drivers
Growing demand for high quality
21. Eclectic Paradigm
• Dunning
• Internalization (Value chain optimization)
• Location (Entry to developed markets)
• Ownership (Change from JVs to owned FDI)
25. In global market: Continue Brand Building Initiatives
• An individualized brand
• The product quality, adaptability and flexibility
• Customer focused firm
In Domestic Market: Continuous Innovation
• A home company
• Increase quality
Recommendations:
26. Discussion
• Would Haier diversify their products by having different brand names, or
should the continue with one big brand?
• Would you use JVs as entry mode to global markets?
• Did they make the right strategy by entering to developed market rather
than easy markets?