Haier America Corporate Strategy

A case report prepared for

MG 495 Business Policy

[The term of the course]

[Name or the team name and team members]

[Date of submission]

TABLE OF CONTENTS

I. INTRODUCTION1

A. Executive summary1

B. The situation2

II. ANALYSIS4

A . Analysis of the Situation4

Management4

Operations5

Marketing6

Finance7

SWOT7

B. Problem Definition10

Number 110

Number 210

Number 310

III. SYNTHESIS11

A: Alternative Solutions11

B: Recommendations and conclusion13

REFERENCES14

Haier America Corporate Strategy

I. INTRODUCTION

A. Executive summary

Summary statement of the problem: The Haier Group Inc. had been founded in China in 1984. A major electrical appliance in China, was listed as the only Chinese name brand among the world's 100 most recognizable brands, Encouraged by the Chinese government, Haier strove to become truly international. Haier's executives believed that they could extend the company's strong domestic brand reputation into the West by introducing innovative products for niche consumer markets and then expanding into bigger markets.

Summary statement of the recommended solution: There are several issues that The Haier Group faced in their goal to expand into the American market. The lack of brand recognition can be solved by launching a very aggressive campaign to advertise their products to the right market segment that was going to buy their products. An analysis of their marketing campaign revealed that their competitors were using a broader and more aggressive marketing campaign to attract a larger buying group. To resolve these issues and obtain the desired goals which is market penetration while at the same time, create an economic policy that can allow the company to develop a distribution and delivery system and maintain their costs to a profitable level. Haier America needs to create a more aggressive marketing campaign and form alliances with strategic partners.

B. The situation

Home appliances and consumer electronics were segments of the durable goods industry. Durable goods were manufactured products capable of long use (over three years.) Haier's leadership position in the Chinese home appliance industry had been solidified by obtaining a domestic market share of 21% of overall appliances, far ahead of all its competition, with 34% of major home appliances and 14% of small electric appliances (Zeng & Williamson, 2007).

On March 4, 2002, Haier opened its American headquarters in New York City, which was an indication that Haier had moved into a new phase in the globalization of product design, manufacturing and sales. Haier had a strong commitment to long-term development in the United States. Haier had a competitive position in the consumer electronics industry in China because of the company's strong brand recognition, rich feature designs, and well-services networks, but globally, Haier had gained first place in the United States in sales of compact refrigerators and wine coolers.

Haier had been founded in China in 1984 to produce mainly household refrigerators and over the past 20 years, the company had witnessed significant growth and was now a transnational organizational widely recognized in the world community. Haier was the world's 4th largest white goods manufacturer and one of China's Top 100 IT Companies. Haier had 240 subsidiary companies and 30 design centers, plants and trade companies and more than 50,000 employees throughout the world. ...