Haier case - Haier's strategy is to occupy developed...

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Haier case Haier Group, starting to manufacture refrigerators in 1984 and producing air- conditioning, washing machine and even computers, etc. almost all electronics products, has become one of the world's leading consumer electronics manufacturers. Haier's strategy is largely divided into three steps. The first is developing a the brand image. Haier had focused only on refrigerator for seven years, strengthening the quality of products. Through this, Haier has built a brand image and enhanced employee’s spirit which could improve the quality of manufacture. The second step is a diversification strategy. Adopting a strategy to expand the areas by lowering the interest level, Haier was converted into a comprehensive consumer electronics manufacturer. The last one is a internationalization strategy. As opposed to strategy which is that companies usually strengthen domestic demand first and then expand abroad,
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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.

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