Haier Global Strategy

Haier - Global Strategy

Objective / Strategy

Home Market strategy: To become a first-class brand and defend it’s dominant position in China

Global strategy: Entering new markets by using speed&differentiation capabilities and local staff experience for setting a well known brand name

Scope

Since Haier is operating in white goods market, ideal customers are households, private and governmental companies. White goods are basic tools of standart living, therefore all categories of the community have to use these tools based on their incomes and needs. While setting and planning it’s operations, Haier tried to expand globally instead of only remaining at domestic Chinese market.

Note: As the assignment is about Haier’s global expansion decisions, Competitive advantages were eveluated for global strategies instead of former local achievements in Chinese market

Competitive advantages

Value Proposition:

* Product differentiation

* Rapid market response

Activities that allow the firm to deliver the value proposition:

Product Differentiation activities:

* Sending R&D people to the target market to talk directly with customers, or even with the salespeople in chain stores, to find out their specific needs

* Focusing on first niche products at target market. When others began to imitate, Haier added new and innovative features to those products in a shorter time with help of strong R&D team. Adding new features on to standart basic models kept the cost less but highly valued by customers

Rapid market response activities:

* Facilitating rapid product development by means of establishing 18 design centers, some in foreign markets.

* Testing the ideas from the field quickly and making into prototypes

Resources:

Visionary management mindset:

Haier made workers to understand company’s commitment to quality (Haier worker discipline program). The company also employed local people at higher management...