Haier taking a chinese company global. Solved Haier: Taking a Chinese Company Global in 2011, Chinese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Solution 2022-10-10
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Haier is a Chinese multinational home appliances and consumer electronics company that has successfully taken its brand global. Founded in 1984, Haier initially focused on producing refrigerators and washing machines for the domestic market in China. However, over the years, Haier has expanded its operations and now has a presence in more than 100 countries around the world.
One of the key strategies that Haier has used to become a global company is by acquiring and partnering with other companies. In the early 2000s, Haier acquired the American appliance company, Maytag, and the German appliance company, Frestech. These acquisitions allowed Haier to enter new markets and gain access to new technology and expertise. In addition, Haier has formed partnerships with other companies, such as General Electric, to further expand its global reach.
Another key factor in Haier's success has been its focus on innovation and customer-centered design. Haier has a strong research and development team that is constantly looking for ways to improve its products and meet the needs of its customers. For example, Haier has developed a line of smart appliances that can be controlled through a smartphone app, making it easier for consumers to use and manage their appliances. Haier has also focused on sustainability, producing energy-efficient products that are environmentally friendly.
Haier has also embraced digital marketing and e-commerce to reach a global audience. The company has an active presence on social media and has launched online stores in various countries, allowing customers to easily purchase Haier products from anywhere in the world. Haier has also invested in digital advertising and targeted marketing campaigns to reach potential customers in different regions.
Overall, Haier's success in taking its brand global can be attributed to its focus on innovation, customer-centered design, and strategic acquisitions and partnerships. By constantly adapting to the changing needs of its customers and the global market, Haier has been able to establish itself as a leading player in the home appliances and consumer electronics industry.
Haier: Taking a Chinese Company Global in 2011
Meanwhile, by operating on niche markets, they are able to build their brand reputation and their relationship with retailers, improve its quality standards, etc. This was a new plan and was highly successful. Once Haier were successful in the niche products, they gradually launched regular and high-end products to global market such as standard refrigerators, washing machines and air conditioner. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. This clearly indicates that the financial position of the company is really strong. Financial issues: There are some financial issues arising within the company and these issues are as follows: Profit margin of the company is decreasing in spite the revenue of the company is constantly growing There is a decrease in EBITDA margin and operating margin.
Haier: Taking a Chinese Company Global in 2011 by Tarun Khanna, Krishna Palepu, Phillip Andrews :: SSRN
Looking ahead to the next decade, Haier CEO Zhang Ruimin saw opportunities for Haier to grow through product diversification and additional market penetration in both developed and emerging markets. Instability in the European markets — European Union markets are facing three big challenges post Covid — expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Company always keeps in mind the environmental betterment of the country or the city in which it is having its production. Haier: Taking a Chinese Company Global in 2011, Chinese Version suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses. The company hired an entire new management team formed by locals for Haier America, with a few Chinese employees that would give them feedback and knowledge. Specifically, Haier was a collective enterprise whose ultimate authority was municipal government.
Increase in government spending — As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Haier Haier's can use these opportunities to build new business models that can help the communities that Haier Haier's operates in. Zhang thought that entering developed markets would challenge the company to improve its quality standards, as customers and retailers were more exigent in developed countries and have the need to update their resources. Innovation driven organization — Haier Haier's is one of the most innovative firm in sector. Company focuses on beginning with the niche products. For The Company entered in the developed market with a complete niche in order to ejaculate the competitors out from the market. Even after few cautionary changes mentioned in the HBR case study - Haier: Taking a Chinese Company Global in 2011, Chinese Version, it is still heavily dependent upon the existing supply chain.
Its verticals in China are Taobao, Tmall, and Juhuasuan serving as the marketplace. For instance, farmers in south-west China used Haier washing machines to wash the mud off sweet potatoes. . It uses a Helvetica typeface and is red in colour. A compared to the competitors, it can be seen from the sales volume that company has a huge level of production. Main role of financial manager in strategic management process is to check all the financial issues that arise within the company and give the better solution for such issues so as to increase the financial performance of the company.
Goodness of this strategy can be seen in its financial performance as well. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe. It will directly impact the business of Haier Haier's. Get Help With Your Essay If you need assistance with writing your essay, our professional essay writing service is here to help! Employees in the company are satisfied with the fact that they are the only owner of the company but problem is that they do not know their ownership percentage. Slow to harness new channels of communication — Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Haier Haier's is slow explore the new channels of communication.
Haier Taking A Chinese Company Global Marketing Essay
Barriers of entry lowering — As technology is more democratized, the barriers to entry in the industry are lowering. They would need to determine which of the lessons learned from Haier's international operations should be implemented in China and which skills learned at home could best be applied abroad. High switching costs — The high switching costs that Haier Haier's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers. But, entering a developed market competing head-to-head with the already established big companies would result in failure. While talking about clothes, it will lead to fashion. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach. Haier had followed a nontraditional expansion strategy of entering the developed markets of Europe and the United States as a niche player before venturing into Middle Eastern and neighboring Asian markets.
Innovation is considered to be the core value of the corporate culture of Haier. First exported products to UK, then Germany, France and Italy. It follows this strategy not just to export but also to satisfy the needs of the local population. Learning curve for new practices — As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Haier: Taking a Chinese Company Global in 2011, Chinese Version, Haier Haier's may face longer learning curve for training and development of existing employees. This means that model of operations in the company remained the same but the frequency of the operation or production in the company increased. It is into B2B, B2c, and C2C.
The valuations of a number of companies are way beyond their existing business model potential. Backlash against dominant players — US Congress and other legislative arms of the government are getting tough on big business especially technology companies. Creating value in data economy — The success of analytics program of Haier Haier's has opened avenues for new revenue streams for the organization in the industry. Continuous innovation was also taken into consideration to meet customer needs. Haier had followed a nontraditional expansion strategy of entering the developed markets of Europe and the United States as a niche player before venturing into Middle Eastern and neighboring Asian markets.
Haier Taking A Chinese Company Global, Sample of Essays
In line with the expansion strategy, Haier made a technology licence agreement with a German manufacturer Liebherr, realizing that the German goods are of higher quality. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Also, they were able to build a relationship with the big retailers such as Walmart, which operated in China too. As compared to the competitors like Whirlpool and GE, the financial volume share of the company is less but is increasing at a greater speed. For Haier Haier's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture.
Solved Haier: Taking a Chinese Company Global in 2011, Chinese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Solution
Third stage of constructing weighted SWOT analysis of Haier: Taking a Chinese Company Global in 2011, Chinese Version is to provide strategic recommendations includes — joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors — strengths and weaknesses. Manager in Haier: Taking a Chinese Company Global in 2011, Chinese Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience. Though people may buy a compact refrigerator from Haier, they will not choose other home appliances from Haier. Regulatory challenges — Haier Haier's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc.