Haier’s Globalization Case Analysis Essay
With the entry into WTO, Chinese household appliances industry begins facing the globalization challenges and also worldwide learning challenges. Haier has started its formal globalization in 1997, and has been able to set up a successful example in competing with those challenges. However, the coming years are bringing more challenges including how to establish itself as a major localized US brand, integrate with locality, build brand recognition and manage its brand.
Reputation of the brand and company’s creativity has long been the Haier’s main strengths for competing inside China. As a result, the sign of success in global competition is also supposed to be the brand. Meeting consumer’s needs is always …show more content…
First of all, time and efforts are required to expand its worldwide market locations, advertise its brand, and enhance the competitiveness of their products and the competitiveness of their business operations. Second, by competing on value rather than price, Haier should make products that are highly valued, and consolidate resources as soon as possible to best meet customized needs and exceed their expectations. Finally, company culture should be transited to multi-cultural to achieve sustainable development. Traditional Chinese culture that rooted in Haier stuff’s mind should be synthesized with west culture and also other Asian culture such as Japan.
As discussed above, invisible assets such as brand name, corporate culture and reputation are the most important contributors that could help Haier achieve sustainable competitive advantage. However, they all require on-going and time-consuming efforts to accumulate its difference from competitors. It is crucial for Haier to carefully consider its strategies to accumulate those invisible assets. Several recommendations that I come up about brand strategy are as follows. First, Haier should position its brand at benefit or value level instead of attribute level in different periods.