Unformatted text preview: Haier's strategy is to occupy developed markets first and then to go to emerging market after. This strategy is relatively large and highly competitive in global brand recognition, however the strategy has risks that are less likely to succeed. Despite the pessimistic predictions of many experts, Haier attempted to enter into developed markets. The reason for making this decision is that Haier had strong conviction which its advantages in low-cost products could exploit the niche market. Another reason for using this strategy is the limits of the price competitiveness. Considering fast growth rate of china, China could not always take advantage in price. If it tried to focus on emerging market first, it would go to developed markets at the time when it might lose price competitiveness....
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This note was uploaded on 03/22/2011 for the course ECON 101 taught by Professor Jo during the Spring '11 term at HEC Paris.
- Spring '11