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INTB 6217 Haier Taking a Company Global in 2011 Case Study

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INTB 6217

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Haier Taking a Company Global in 2011 INTB 6217

Haier, a local refrigerator manufacture and distributor in China that kept growing over three

decades, became a successful multinational manufacturer because of its business strategies and

competitive advantages. The company’s CEO, Zhang Ruimin who saw potential growth

opportunities through product diversification and entry into new developed and emerging

markets. The following will illustrate the critical factors for Haier’s success in China.

• Management Leadership and style: Haier’s CEO, Zhang has over 25 years of leadership

experience and much of the company’s success is directly linked to him. He brought

extensive experience in customer service leadership and customer satisfaction. Zhang

believes that Haier is much more than just a manufacturer. He saw Haier as a solution

provider to consumers.

• Quality improvements: Haier was focused on providing better quality products than its

competitors and not just competing on price. The company focus was on adding

distinctive features to its products that make it standout in the market through

differentiation. Product quality will provide consumers with the satisfaction and

reliability that they seek in any product. This is seen as great added value to the product

features and product brand.

• Customer Service: the company focused on its customer service division with great

warranty program and full repairs.

• Brand Reputation: Haier built a strong image and brand through its product quality and

consistency and excellent customer service. Management saw a strong brand name in

China would open doors for global expansion.

• Innovations: Management envisaged that to succeed in China, meant that the product

differentiation and development should not stop. Haier focused on marketing, consumer

customization, distribution and R&D.

• Line of Products: the company adopted a single brand approach to market and strengthen

its position and image in China.

• Better control of supply chain: the company had unified logistics department for all of its

products. This provide cost savings in transportations and improved delivery times.

Haier’s market entry strategy was different from the traditional way of global expansion. The

company decided to target and sell its products in the developed markets including Europe and

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Haier Taking a Company Global in 2011 INTB 6217 Haier, a local refrigerator manufacture and distributor in China that kept growing over three decades, became a successful multinational manufacturer because of its business strategies and competitive advantages. The company’s CEO, Zhang Ruimin who saw potential growth opportunities through product diversification and entry into new developed and emerging markets. The following will illustrate the critical factors for Haier’s success in China. • Management Leadership and style: Haier’s CEO, Zhang has over 25 years of leadership experie ...
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Tags: Zhang Ruimin Management Leadership and style Haiers market entry strategy Innovation Lessons From China US and European markets