Haier Case Study

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Recommended: Market entry methods international business

Haier:
Taking a Chinese Company Global in 2011

Justin Leibforth
Brandon Martin
Kweku Arthur-Mensah
Professor Donald Hatfield
MGMT 475

Executive Summary
The Haier Group started in 1984 by CEO Zhang Ruimin, as a defunct refrigerator company in Qingdao, China (The Shandong Province). Since then, The Haier Group has grown into China’s largest home appliance producer before launching operations to overseas markets.
The Haier group wants to figure out how it can grow its company in foreign markets such as the ones in Europe, India and America. Haier wants to know, if any, of its practices in China can help them branch into a foreign market and be successful. Consequently, the company wants to figure out ways it can apply what it has learned outside of China into the Chinese market and vice versa. The company wants to learn from practices that have worked and ones that have not to enable them make good decisions across the organization. We think that if Haier does not address their concerns, they not only will lose market share in China (due to increase competition), but they will also miss an opportunity to capitalize and grow their company worldwide.
We recommend that Haier focuses on specific/niche product lines when they venture into foreign markets. We also recommend that the company employ locals in foreign markets to enable them to better understand what their preferences are, as well as providing them with a better understanding of the culture. Lastly, we recommend that Haier focuses on specific or emerging markets since they have had tremendous success in implementing their core competencies (catering specifically to an area or demographic, after-sale service and innovation). Haier was very successful in implementing t...

... middle of paper ...

... should follow the guideline that Haier wants.
3. Determine which products or product lines Haier should begin with when entering the market. This can be new products or already developed products.
4. Develop a plan for which mode of entry Haier wants to do to enter the market; Joint Venture, Foreign Direct Investment, Exporting, etc.
5. Introduce the product(s) into the new market through major retailers. This will be how Haier test the market & show the major appliance retailers that Haier is a product that sells.
6. After the beginning products are successful, introduce the other Haier products. Since Haier will already have its name more well known, the market will trust these products more easily.
*Note: Haier has already developed entry plans for entering new markets. This a basic plan to give the idea of what it will take to perform this recommendation.

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