Haier: Taking a Chinese Company Global in 2011 Case Solution

Haier: Taking a Chinese Company Global in 2011 Case solution 

Customer – Focused

For the European countries,the strategies of Haier were different. After commencement in Europe, the distribution of itsproducts was taking place from Italy to the 13 countries of Europe. However, R&D provided the need of the customers and Haier continued bringing in innovative features in its products according to the demand. For instance, in Europe the customers required the front loading of the washer whereas, inFrance the customers’need was the top loading of the machine. Haier kept its progress towards modification and as a result, it was capable of catering that market as well with dominant market shares.

Employing local labor

India has remained a difficult market for Haier to cater, as the Indian culture and economy differ from that of the U.S and Europe. Due to this, Haier came to the Indian market with adifferent approach. It selected labors from the local country so that they would be helpful to penetrate the market. Haier’s R&D assistednot only in India but also in the U.S by bringing up products as per the customers’ needs. Haier, hence, remained innovative with immediate testing of new features. For example the users of the freezer in the U.S found it difficult to load things up from the bottom, and as a result Haier’s team immediatelyprovided freezers having drawers in them.

Haier provided simplicity in its products with its innovations in different regions. Moreover, this remained the aim of the company to put people at ease without compromising on quality. Haier retained its customers by using different strategies and this can be proven through its success in the market. However, there were some pitfalls in its strategies.

Risks for early globalization

As there are benefits of utilizing strategies that Haier adopted to get into the international market, therefore there are some risks associated with it as well.

Local labor at workplace

Providing local labor from the country on the site is beneficial for Haier,however it kept in mind that on the field, the sales and analysis team should be from the origin country. The reason for employing its labor was that they would remain honest to their work and provide sufficient knowledge of exactly what the company requires.

Loss due to Competition

Companies expanding in other countries can face intense competition from the local companies operating in those countries. It will never be easy to remain in the market with the threat of the local companies. Thus, being at a loss is obvious at early stages.

Economic depression

Unlike Haier if a country is in economic depression, then it will have an impact globally. This is another reason for which globalization has been prohibited for the developing countries.

Niche Marketing by Haier

Niche marketing for any brand is very useful as they get several benefits of it. Niche market deals with the segmentation of customers to those only who want to buy the product of the company. Although, it is difficult to cater a niche market, however it will be beneficial for Haier as it already has entailed huge market. Hence, it would provide Haier with the following benefits. (Toften, 2009)

Increase in profit

The ultimate objective of any business is to maximize its profit. Customers that are not serious about buying the product waste the time usually. However, being niche, the brand can save time and sell to the profitable customers. Therefore, the profit of Haier will increase by selling to the loyal customers…………………

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Haier: Taking a Chinese Company Global in 2011 Case Solution
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