Haier: Taking a Chinese Company Global

Haier: Taking a Chinese Company Global

Haier is a home appliance company based in China. The company started in the year 1994 under the leadership of Zhang after take over from a collapsing refrigerator company based in Qingdao. It started as a refrigerator manufacturing company then expanded to include washing machines, air conditioners, kitchen and bathing equipment and information technology products. It underwent robust growth in the Chinese market and also crept into the global market.

Haier is fairing greatly in the local Chinese market competing with both the local and international companies. The company has differentiated its products by producing high quality products than its competitors. The Haier management insists on quality rather than quantity and thus it has emerged to be the quality leader in China. The company has also differentiated itself by establishing a strong and fast customer service. Haier, being a late mover in the domestic market enjoyed the market certainty advantage. Before entering into the market, the customers already knew the refrigerators, air conditioners and home appliances. The company therefore had the solid, tested data from rival companies to calculate the demand and the response of consumers which helped in its planning and production. It also enjoyed the low risk advantage as it could observe the best methods that have worked in market response to the rival companies saving it the risk of adopting a wrong method (Jinsheng and Xian 30).

Haier basis its international market strategies on two pillars: Knowledge of local product markets and knowledge of local talent. To penetrate the global market, the company utilizes its knowledge of the product market by starting off with distributing simple and unique models to avoid head on competition with the giant competitors and to test the market viability. Once the company lands in a foreign market, it utilizes the local talent