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a) What are Haiers vision and mission?

Haiers main vision is to invent resources and global prestige. The resource
creation is based on innovation. The core competence originated from the innovation
can be benefited in critical situations where Haier may have fewer resources than its
competitors. The higher objective of the company is to achieve worldwide prestige ,
which is accomplished by satisfying the needs of customers from all over the world
hence making Haier a globally recognized first-class brand.
As for the mission of Haier, it has basically three fundamental mission namely, to
be the worlds most renown brand, to always be customer- orientated and to contribute
in developing energy-saving, environmental friendly, fashioned and personalized home
appliances. In comparison, Samsung should be taken into consideration. Samsung is
guided by a singular vision: to lead the digital convergence movement. It aims to
develop innovative technologies and efficient processes that create new markets, enrich
people's lives and continue to make Samsung a trusted market leader. Haier and
Samsung are basically in the same industry, they are both home appliance
manufacturers and digital companies. However, comparing the both vision and mission,
we can easily spot a big level-difference between the two companies. Samsungs vision
and mission have a higher level concept than Haiers. In terms of its causes, they are in
the different developing phases and different strategies. Samsung has been the worldfamous brand for more than 10 years, is has successfully completed its globalization
strategy and constitutes its new development strategy.
However, Haier has to begin his arduous journey of globalization and global
brand building if Haier wants to occupy a place in international competition and achieve
its vision and mission.

b) According to Haiers president, many people have negative perceptions on Chinabased companies but Haier is able to be ranked No. 1 in home appliances recently. In
your opinion, what are the success factors of Haiers management? Explain.

Public may only describe most China products in just one word duplicate. This
is because most China products are a copy from the original. However Haier is one of a
kind as it has a good public review although its origin is China. This is mainly because
of the originality of the design and features of its product produced in the market.
Besides the user- friendly and local-orientated design of the product makes it the
peoples favorite home appliances. This is proven by the exotic designs of home
appliances that vary in different parts of the world; rat-proof appliances for china, large
volume refrigerator for America and heavy duty washing machines for Pakistan.
Moreover, the well-organized management will be another reason of the 1 st
ranked home appliance. Good publicity and advertisements help the products to reach
the public. In addition, experienced employees will help contribute relevant ideas and
suggestions for company development. Besides, Haiers innovative managements such
as unique OEC, Market-chain and SBU management methods have been
recognized worldwide, especially in many foreign educational

institutes,

including

Harvard University and University of Southern California.


On top of that, reasonable sales, unlimited discounts and gifts upon purchases at
normal times and festive seasons act as a magnet to attract customers. Most
importantly, the goods sold are high in quality and has a satisfying lifespan.
Furthermore, their impressive after-sale service and customer service adds on the spice
in their flavor.

c) Write down THREE (3) strategic objectives of Haier in Malaysia in order to


achieve 50 per cent growth in sales.
The first strategic objective will be localization. Localization is the process of
adapting a product or service to a particular language, culture, and desired local lookand-feel. Haier has started its localization strategy in Malaysian markets; its theory of
this strategy is Three-in-one localization, which means Haier should design the
products to meet local consumers needs and lifestyle, manufacture the products in the
local market and market the products in local ways. An example is that Haier created an
advanced zero detergent washing machine, which has a high requirement of water
quality. Haier needs to obtain water samples from around the world, because the
washing machine must be designed to depend on local water features. The zero
detergent washing machine has a good sales result in Malaysia because of high quality
water in Malaysia. My suggestion is that Haier should have the concept of globalization,
but the action of localization.
The second strategic objective is Haiers local branding strategy which aims at
picturing the company as a local brand in Malaysia in conjunction with enhanced
product competitiveness and strong corporate operations. Haiers local business
framework encompasses a network of design, procurement, production, distribution and
after-sale services. The way Haier implements local branding strategy is mainly forced
by local economic integration.
The third strategic objective is target market which is mainly the study of
customer coverage. Studying from the segments of age, gender, income and benefits, It
can be concluded that the target market of Haier can be:
(1) Everyone, no matter how old, needs home-appliances and digital devices, especially the
young couples who get married need lots of home appliances in theirhomes;
(2) Females always do the kitchen chores, they need home-appliances more intensively;

(3) Haier should focus on consumers who at least have middle-level income.
(4) Focusing people who like high-quality products, excellent services, convenient function.

d) Describe the strategies that Haier employed in global and becoming number
one in the home appliances industry.

To be a global brand serving more than 100 million customers worldwide is not
an easy task. It requires a lot of hard work and skillful strategies which was efficiently
taken by Haier. Haiers main strategy here is to satisfy the different needs of customers
from different places around the globe. In conjunction, Haier conducted a study to
identify the right design of home appliances which is local-orientated and ability to
satisfy the basic need of the customer.
They started with their motherland China where they found that rats are a major
problem for their customers; thus they invented home appliances that are rat-proof.
Besides that, Haier offered 500 cubic liter refrigerators that include a pull out drawer big
enough to store a turkey for the Americans. This is because they knew that the people
in this particular country like things fresh where they store most food items in the
refrigerator and their main items like turkey will need a big storage. Meanwhile, in
Europe countries Haiers Italian style three door refrigerator won the German Red Dot
Design award for its stylish design and environmentally features. On the other hand in
Pakistan, a super large washing machine that can wash 32 robes at once was designed
specially as their clothing are much more heavy and long. Besides that, Haiers second
strategy is that it supports the global aim of achieving zero-pollution where the product
designs are mostly environmental friendly. This where else is another reason why Haier
products is globally accepted. Its third strategy plays a big role in the technological
improvement and appearance, as a products first impression is on its looks. Among the
new products showcased by Haier include LED and LCD TVs with Mo-Card technology,
three-door refrigerators with smart message display, energy saving air-conditioners,
washing machines that use double drive technology as well as a number of other home
appliances like blenders and wine refrigerators.

e) Identify and explain THREE (3) strategic weapons Haier have applied in order to
penetrate international market and sustaining competitive advantage.

To sustain a competitive advantage and to penetrate international market can


only be possible for companies with good standing and impressive strategies and it
would not be a hesitation to say Haier is one of them.
Their first strategy will be WO Strategy- Joint strategy and Transformation
strategy. In this strategy, Haier reduces the negative effect of internal weaknesses by
taking in some external resources hence making a good use of external opportunities.
With the economic status in mind, Haier considered of making some mergers or jointdevelopments with other competent foreign and domestic companies in hopes of
overcoming its internal weaknesses in capital, technology and management. An
example would be Haier has formed a strategic partnership with US-based NComputing
in 2009 which enables Haier Computing to expand in the US market for the first time
and will also increase the company's presence in more than 30 countries. We can see
from the example that the establishment of successful partnerships can help increase
its efficiency and strength its market power. Besides, another WO strategy would be the
transformation on its internal weakness in international and global marketing. Haier has
already undergone a transformation in two aspects from 2009.Their first transformation
was to evolve the main market focus from domestic to the international market. This
should not bring a wrong perception as Haier doesnt mean to abandon domestic
market but to boost it through the successful expansion of global markets. This required
Haier to integrate global resources and catch the international marketplace of ideas,
innovations, and human resources in order to satisfy customers needs worldwide. The
second transformation was to transform itself from a manufacturer to a service provider.
This on the other hand gives more emphasis on marketing, logistics, and quick
responding to the market needs by providing personalized services to customers.

The second strategy will be high pricing strategy. Haier completely displayed its
strengths to cope with threats from oppose competition and price war. Haier enjoys
superiority over its competitors in many aspects. The prestigious brand name and
reputation help distinguish itself among numerous appliance companies. Besides, its
diverse product range also contributes to the expanding of its business scope.
Therefore, Haier implemented the high pricing strategy by improving the product quality
as well as the customer service. Not forgetting, to diversify its product range while not
lowering the price due to the pressures put on by other competitors. Haier has a strong
belief that customer satisfaction and reputation are more important than sales volume.
Haiers high quality & high pricing strategy can strength its customer loyalty and attract
more potential customers without a loss in profits, which in turn aids during the current
ferocious price war.
The third strategy is called the Glocal strategy. This strategy was carried out to
handle the threats from international competitors. Glocal strategy states that the
company should think globally but act locally. As what has been mentioned earlier, one
of its strength is its productsglobal availability and companys multinational presence.
To put it more specific, Haier adapted their prices, products, and promotions to meet the
unique needs of each areas targeted customers. Their intention was also to consider
their spending power, product references and shopping patterns. Haier is strongly
convinced that the essence of globalization is localization and efforts are taken in
establishing a "Three-in-One" operational framework: localization of design,
manufacture, and marketing. In fact, some programs, like the PC Ordering Department
in Macedonia, demonstrated its ability to internationalize its business culture and adapt
to conditions in a global marketplace.

f) Identify and explain THREE (3) strategy elements that are well-suited for Haier,
a company in a matured (stability) industry of electrical appliances.

Firstly is technological strategic: Haier has been playing the leader role in the
production of 9 product in terms of domestic market shares, top 3 producer of
refrigerator, wash machine and air conditioner in the world market and the world-class
company in home integration, network appliances and digital & large scale integrated
circuits fields. Haier has also hosted and taken part in the modification of about 100
technological standards. Apart from that, until the year of 2008, Haier has obtained 8795
patented technology certificates where 2078 are for Haier inventions, and 856 software
intellectual property rights.
Secondly is Innovation Strategic: Innovation is a fundamental driving force for
enterprise development. Haier really plays an excellent role in this point. Haier always
pursue innovations whether in producing, business management or in the after
sales services. Products like safe care water heater, dual drive washing machine, smart
air conditioner, four temperature zones refrigerator and comfort-eye computer are all
innovation-reflections of Haier. , Haiers innovative managements such as unique
OEC, Market-chain and SBU management methods have been recognized
worldwide, especially in many foreign educational institutes, including Harvard
University and University of Southern California.
Thirdly is Corporate Culture Strategic: Haiers employees widely recognized the
corporate culture strategic as innovative value created by Haier senior management.
Innovation is the core of Haiers corporate culture, Haiers unique cultural system
cultivated and developed over the past 20 years. Haiers corporate culture is guided
and developed by an advanced concept, creative technology, innovative strategy,
efficient organization, and market orientation. Haiers corporate culture features the
recognition and participation of all employees. Today, Haiers ambition is to gain
worldwide recognition. To achieve this magnificent goal, Haiers employees involved in
realizing its ideal to be a globally recognizable brand

Introduction to
Management
Assignment
1
Name
Ganesh A/l Anuel Kumar
Vinod A/l N.Rajandran

Matrix
id
16238
15976

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