Wednesday, 15 October 2008

Haier: Taking a Chinese Company Global (HBS9-706-401)



This is a case of a multinational company, Haier, the biggest Chinese white goods manufacturer. This paper describes Haier’s history and expansion foreign market.

Analyzing Hair’s strength, these are:

In Chinese market:
Reputation; Brand, 20% more than its competitors
Distribution: Speedy and less-inventory
Rapid response: 42 distribution centers
After Service: 5,500 independent contractors
Low labor manufacturing: one tenth of U.S

In foreign market
Product Response: 18 design center and seventeen hours working model.
Product differentiation: close attention to customers
(Reputation: selling U.S or EU)


Haier’s strategy and strengths are clear and so theoretical. Thinking roughly, it is better to keep Chinese market and present position with niche production or exploiting its distribution in China. And develop new technology for next generation of home appliances.

(URL:http://www.haier.com/index.htm)

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