Haier Global Strategy

Haier Global Strategy

BA 663 International Business

Abstract

This paper focuses on discussing the global strategy of Haier Group which is a famous multinational enterprise. Haier is China’s largest appliance maker and is the world’s 4th largest white goods manufacturer. Haier’s development includes three stages, notes as Brand Building, Diversification and Internationalization. In this paper, SWOT method is used to analyze the present strategy of Haier Group. Based on the present global strategy of Haier Group, I offer strategic recommendation which includes marketing, R&D, sourcing and geographic aspects of business. At last, some ideas which may lessen the risk of the recommendation are proposed.

Key Words: Haier Group; SWOT; Global Strategy

1. Company Background

Haier was founded in 1984 in Qingdao city, Shandong Province. Formerly, the Haier Group was known as Qingdao Refrigerator Plant. It climbed from the verge of bankruptcy in the early 1980s to establish itself as a world-renowned brand. And now Haier is the world’s 4th largest white goods manufacturer and one of China’s Top 100 IT Companies. In 1984, Haier produced only a single model of refrigerator. Currently, Haier is China’s largest appliance maker and its products include refrigerators, freezers, air conditioners, dishwashers, microwaves, televisions, vacuums, cellphones, and computers, etc. The Business Scope of Haier is technology research, product development, manufacturing, trade and financial services. Under the leadership of Chairman and CEO Zhang Ruimin, Haier manufactures home appliances in over 15,100 different specifications under 96 categories. By April 2006, the Haier Group has obtained 6,189 patented technology certificates and 589 software intellectual property rights. Haier’s proposal for safe care water heater technology initiative was accepted at the 66th IEC Conference in 2002 and Haier dual drive washing machine technology was included in the 2006 IEC standard proposal. This clearly demonstrates Haier’s world-class innovation capabilities in product R&D. [1] Haier products are now sold in over 100 countries around the globe. Haier has 240 subsidiary companies and 30 design centers, plants and trade companies and more than 50,000 employees throughout the world.

Haier had experienced three development stages, noted as Brand Building, diversification and internationalization. At the 25th anniversary of the founding of Haier Group on April 26, 2009, Haier announced its 4th strategic development stage of global brand building from 2010, but without any documents or information about