Haier : Taking a Chinese Company
Global
Group Name: BLUE OCEAN
Blue Ocean
:Taking a Chinese Company Global
Objectives
Pointing the main ob
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Deficit the SWOT Analysis
Analyzing the Organizational Strategies
Identifying the factors of global marketing
Recommendation
Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
:Taking a Chinese Company Global
Snapshot:
Haier was founded by Zhang Ruimin in 1984:
 Started in Chinese Port city of Qingdao by taking over
a failing refrigerator factory
 Ranked China’s number one by The Asian Wall Street
Journal 2004
 Celebrated its 20th anniversary in 2004 with annual
sales topping RMB 100 billion
 world’s 4th largest White goods manufacturer and 3rd
in revenues
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Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
:Taking a Chinese Company Global
SWOT Analysis:
Strength
Abundant financial resources
Well-known brand name
Number one ranking in the
industry
Economies of scale
Proprietary technology
Patented processes
Better marketing skills
Superior product quality
Good distribution skill
company/product/brand image
Weakness
Very narrow product line
Limited distribution
Higher costs
Weak market image
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Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
:Taking a Chinese Company Global
SWOT Analysis:
Opportunity
Opening of foreign markets
New product discoveries
Economic boom
New technology
Sales decline for a substitute
product
Complacent rival firms
Threat
Entry of foreign competitor
Introduction of new substitute
products
Changing customer needs/taste
Declining customer confidence
Rival firms adopting new strategies
Economic downturn
New technology
Demographic shifts
Foreign trade barriers
Weakening currency exchange rates
Blue Ocean
:Taking a Chinese Company Global
Strategies:
Growth and Diversification
They Expand their product line
Acquisition
Operational Restructuring
Operational reengineering
Reconstruct their service blue print
capital flow
commerce flow
material flow
overseas
E-commerce
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Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
Strategies:
:Taking a Chinese Company Global
Chinese market
Haier in domestic market
Market skimming pricing
Quality commitment
Chronic price wars
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Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
Strategies:
Foreign
Entrance
:Taking a Chinese Company Global
Chinese market
• Threat of mobility
• Preemptive
defense
• Green marketing
Channel Management
• Zero based channel
• Conventional distribution
• Selective distribution
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Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
Strategies:
:Taking a Chinese Company Global
Chinese market
Why does Haier make differences?
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Product innovation
Multiple usage
Quick customer feedback
Less lead time
Efficient operation management
Corporate VMS distribution
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Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Pushing
Haier
away !
Restricted store size
Lack of complete infrastructure
Lifestyle
Guerilla competition
Blue Ocean
Strategies:
:Taking a Chinese Company Global
International market
Peep in International market
 Contract & JV
 Willing to establish as a independent
player
 Analysis following criteria
 Competitive
 Opportunity
 Market
 customer
Produced
and sold in
china
Produced
china, sold
overseas
Produced and
sold in
overseas
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Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
Strategies:
:Taking a Chinese Company Global
International market
Strategies
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• First difficult then easy
• Threat of intense segment rivalry
• Host country nationals
• Employee empowerment
Haier America
• Contraction defense
strategy by competitor
• Gourmet pricing
Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
Strategies:
:Taking a Chinese Company Global
International market
Haier europe
• Started-2000
• Headquarter- Verse, Italy
• Marketing - 13 European countries and
growing to 17 by 2004.
• Market share- 10%
• Distribution center- Italy, Spain, UK,
Netherlands
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Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
Strategies:
:Taking a Chinese Company Global
International market
Haier India
• Started-1999 with a an appliance
• Goal- one of the top three white goods firm
within 5 to 7 years.
• Difficulty- environment, economy and channels
• Strategy- employs former Whirlpool India
executive as a head of Haier India
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Case Background
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
Strategies:
:Taking a Chinese Company Global
International market
Win the consumers
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Case Background
Product differentiation
Provide unique selling proposition by adding
different features.
Response speed
Rapid product development, ideas from the
field quickly tested and
made into
prototypes.
SWOT Analysis
Organizational Strategies
Global Marketing
Blue Ocean
Strategies:
:Taking a Chinese Company Global
International market
The Next 20 Years
• Moving beyond niche markets in the USA with
full line products
• Exist as a market leader in domestic market
• Number one company in the world for white
goods
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Case Background
SWOT Analysis
Organizational Strategies
Global Marketing