Haier - The Chinese Global Competitor

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Case Details:

Case Code : BSTR181
Case Length : 19 Pages
Period : 2001-2005
Organization : Haier
Pub Date : 2005
Teaching Note : Available
Countries : China
Themes :Globalization | Turnaround
Industry : Consumer Electronics

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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EXCERPTS Contd...

The Road Ahead

Haier had set ambitious targets for expanding its operations in the international markets. The company aimed at achieving a sales turnover of $1 billion from its operations in North and South America by the end of 2005. It planned to achieve this target through selling high-end products in the American markets, particularly in the US.

Most analysts were, however, of the opinion that Haier lacked the brand image to make any serious inroads in the high-end segment of the US market, dominated by giants like GE Appliances, Maytag, Whirlpool and Electrolux. Brands like GE and Whirlpool had high brand recognition and a worldwide service network that Haier may take a long time to match. These companies also possessed and continued to develop cutting-edge technologies for the US market. Analysts doubted Haier's ability to take on these competitors in the high-end segment in spite of its efforts to gain advanced technical know-how. Haier planned to differentiate its products in the markets in order to overcome this problem...

Exhibits

Exhibit I: Haier's Competitors in the US Market
Exhibit II: 3E Daily Evaluation Sheet
Exhibit III: 3E Card Evaluation Criteria
Exhibit IV: A Note on Chinese Home Appliances Market
Exhibit V: Haier's Global Presence

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