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Haier Taking a Chinese Company Global in 2011 Case Solution

Solution Id Length Case Author Case Publisher
1317 304 Words (1 Pages) Tarun Khanna, Krishna G. Palepu, Phillip Andrews Harvard Business School : 712408
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Haier is an appliance manufacturer originally from china, with operations and sales worldwide. In the year 2011, the company enjoyed an impressive sales figure of more than $20billion globally. Recently, the company has been awarded with the title of the most acclaimed and leading refrigerator manufacturer internationally.

Case Analysis for Haier Taking a Chinese Company Global in 2011

The case presents an overview of how Haier came into existence, and describes the various strategies and plans that facilitated it in gaining success through a period of thirty years. The case discusses Haier’s expansion strategy. The company, unlike other players, had first entered the developed markets present in Europe and the USA despite the geographical distance and targeted niche consumer segments in these regions.

Following this expansion, the company then moved to the nearby markets of the Middle Eastern region and other Asian countries. This strategy was supported by Haier’s ability to identify opportunities in the external environment, and incorporate them in the strategic planning process. Zhang Ruimin – CEO of the company, saw opportunity in diversification, and immediately introduced product diversification to meet different needs of the different consumer segments in the developed as well as the developing and emergent markets. This was then followed by rapid acquisitions by Haier in different markets to penetrate further, and strengthen its position. Organizational restructuring was done to facilitate the process of international management of various subsidiaries and branches. The case is important in understanding the process of internationalization, and the various strategies that could be pursued to achieve this. Moreover, the case also highlights the learning that Haier gained from various countries it expanded to which could be implemented in the factory at home to improve processes and cost efficiency.

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