Haier Case Study Essay

1018 Words Mar 3rd, 2015 5 Pages
Haier: Global Strategy Case Write-up
Ryan Munge
Problem statement: From the case I have identified that Haier faces a two-sided problem opposing their efforts to execute their global strategy. First, Haier’s success internationally has been to enter niche markets in developed countries in order gain a strong market share in these niches. However, if they hope to reach their expansion goals in these countries, they must expand beyond these niche markets and enter more mainstream markets against large competitors such as GE and Whirlpool. Second, Haier must also find a way to more effectively gain a foothold in poorer, developing countries such as India, something that they have struggled to do so far. Therefore, I would say the major
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Finally, the problem of expansion into developing nations is compounded by the huge investments necessary to not only set-up new manufacturing centers, but to build the infrastructure to support them.
Recommendations: I believe that Haier has the potential to break out of the niche markets in developed countries if they continue to stress the quality and innovation of their product line. By choosing to manufacture in countries where labor is expensive, such as the U.S., Haier has demonstrated that it is committed to quality products, not low-cost, no-frills selections. Haier needs to remind consumers of this built in quality so that they are not seen as a “cheap, foreign alternative.” Rather, they can leverage the uniqueness and innovativeness of their product line to position themselves as forward-thinking alternatives to the “slow-moving, less-responsive” firms such as Whirlpool. Haier should also continue its strategy of capturing the attention of large retailers (that they have not yet engaged with) in developed nations with the impressive market share of its niche products, and then begin to push its more mainstream offerings when the timing is right. This strategy can prove successful for them so long as they continue to sell the innovation and quality of their offerings so that they can successfully expand into markets such as full-size

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