The case of Haier illustrates the strategic management process and the development of the competitivestrategy and market position in the Japanese Market. It discusses the business strategy of Haier to manufacture and sell refrigerators in the Japanese market first and thenexpands in the Chinese Market which is a totallydifferent market than Japan. However, Haier took the step strategically to enter the Chinese market.
Under its global strategy, the companyfirst developed thecompetence and market knowledgeof the difficult market, markets with complex structure, high barriers and government interventions. Such strategy allowed the company to gather effective data and marketresearch about the customer behavior, allowing it to shape the strategy in the Chinese market. Indoing so, under the global strategy the companyadopted the standardization strategy of productofferingsinto the Chinese market. ThishelpedHaierinmaintaining its cost structure and the flowof sustainable operations in the Chinese market.
Theunderstanding of themarkets allowed Haier to frame the market strategy for easy markets effectively, leading to high penetration and adaptability due to highsynchronization with the market and customer behavior. Theunderstanding of the market allowed the company to develop competitiveadvantagewhich made Haier expand into Chinese market aggressively, sustaining the operations in the longrun,offering the continuous cash flow stream to the company andleading to sustainablebusinessoperations in theChinese market.
The case of Louis Vuittonillustrates thecorporate strategyof the company to shift from truck designing businessto hand-made leather premium bags and belts business in the market, targeting upper tier along with the premiumpricingjustified with the quality, premiumness and exclusivity of the products. The CEO of the companyGeorge identified the business operations more profitable and sustainable in the long run in thecompetitive market. Louis Vuitton adopted the diversificationstrategy in order to make sustainable operations and market position. Since the managementidentified the diluting position of the Truck designing, it shiftedto the fashionindustry offering Bags and Belts to the market.Also, in order to smoothen the operations of the new business, the companystreamlined its operations andprocesses by implementing the hybrid operation strategy whichallowed to strategically meet the market demandsand maintain its core brandimageand brandvalue in the market.
The case thus provides a detailed strategyimplantation and strategic escalation of the company that allowed to maintain the brand image by strategically implementing the new processes business, leading to maintaining thehigh demand of the product, alongwiththe brandimage and brandvalue. The case outlines the corporate strategy and diversification strategy that permittedthe company to make a new brandimage in the market that offered sustainability and competitive presence in the market place.Moreover, the porter 5 forces describes the extent of Rivalry and bargainingpower of the buyers and the suppliers that shapesthe strategicmoves of the company in penetrating the market. These strategic planning and corporatestrategy of the company along with the diversification planning allows us to understand that moving the business and sustaining it on the long run is the core of the strategic planning.Since the market forces are changing in a timely manner, it is important for abusiness to identify the profitability and sustainability of the business in long run………….
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