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production systems. Despite its rapid expansion in both domestic and foreign markets, Haier is still a ‘small boat’, compared to well-known multinationals in the developed countries. In 2014, Haier’s total sales revenue was only 23 per cent of GE’s USD$144.2 billion, and less than 7 per cent of Walmart’s USD$485.5 billion.SOURCE: Adapted from Songhua Hu, ‘The rise of Haier as a global manufacturer’, Global Business Management,2012, Sun Yat-sen University Press, pp. 89–91; about_haier.CLOSING CASE DISCUSSION QUESTIONSa. What are the key factors in the rise of Haier as a global whitegoods manufacturer?b. What are the major challenges for Haier to operate in the United States? Do MNEs usually face such challenges when making foreign direct investments?c. What global strategy has Haier adopted to deal with CAGE problems in global operations?
PART 4COMPETING IN THE GLOBAL MARKETPLACE500Kosmea Australia: Taking rose hip oil to the worldSally Zillman, Queensland University of TechnologyWith a limited domestic market, Australian companies continue to investigate and pursue export opportunities in foreign markets. These export ventures are encouraged by Austrade, as they are significant contributors to national GDP. Entering foreign markets is complicated and fraught with huge risks—political, economic and financial. Inexperienced Australian firms face the enormity of language and cultural barriers, volatile foreign currency fluctuations, high transport and entry costs and the complexities of navigating international tariffs and trade barriers. It is therefore not surprising that many firms fail.Despite the many risks and barriers, many Australian SMEs are able to harness the global opportunities presented to them and benefit from the substantial rewards of internationalisation. These firms seem to effortlessly navigate through the many risks and trade barriers and then seamlessly transfer their domestic competitive advantages into the global market. Kosmea Australia is one such success story.Kosmea is Australia’s leading natural skincare company, and has achieved significant international recognition over the past 20 years. With export success in five international markets, Kosmea has successfully transitioned as a ‘garage to global’ Australian enterprise. The company was founded in Adelaide in 1993 when young mother Marie Kapetanakis discovered the natural healing qualities of organic rose hip oil while mixing a homemade facemask. With a strong interest in natural remedies, and after conducting research and home trials, Kapetanakis was convinced that organic rose hip oil was ideal for treating and healing scarred, sensitive and sun-damaged skin. She became determined to share her enthusiasm for this 100 per cent natural, affordable skincare remedy with Australian consumers.