Haier Proposal

Introduction:

We choose Haier Group as our group project. The reason we choose Haier is because we know that currently China is a world factory, the products which made in China are everywhere but in some way cannot get a positive response by low quality. A lot Chinese products are sold at foreign superstore shelves but that doesn’t mean those are global brand. But Haier was success to transform into one of China’s first global brand to stay in the global market and continues to expand. We think this would be interesting to know how they make this happen and what kind of challenge they need to overcome for future.

(Brief Background)Haier group is the leader of household appliance maker in Qindao, China since 1984. The main goal of company is meeting consumer’s individual demands and selling service instead of selling products. In the past few years, China’s economy was growing fast; however, some geographic regions in China were still poor therefore the penetration rates for home appliances were relatively low. In 1997, Haier group expanded its business to global market. Nowadays Haier Group becomes the world’s top 500 enterprises and successfully entered in 27 countries. In addition, it is one of the largest white goods company in the world. Haier established integration of virtual and physical network to keep itself in a sustainable competitive position. Meanwhile, it actively commits to social responsibilities and launches its corporation reputation during development.

(Problems)As there have lot competitors in white goods industry (Samsung, LG, Panasonic etc.) Haier should focus on produce high-end refrigerator in order to get more market share, also, Haier it lags behind in capital, technology and management when compared with multinational companies. Another failing of Haier is its relative neglect of the importance of an effective global marketing and advertising promotion. Generally, the selling points to be promoted change continuously and therefore there is a lack of distinctive and attractive advertising appeals to the target global consumers for each of its product range. As the result, compare with other competitors Haier still need to work on retaining new markets especially North American market,