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 QUESTIONS
a.
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 4
COMPETING IN THE GLOBAL MARKETPLACE
500
Kosmea Australia: Taking rose hip oil to the world
Sally Zillman
, Queensland University of Technology
With 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.
