CASE STUDY ANALYSIS

HAIER: TAKING A CHINESE COMPANY

GLOBAL

1. Identify the issues/problems: Identify the type of case and the problem(s) or issue(s)
Contained therein. You will focus your analysis on them.

 The major issue with Haier is to take a decision regarding whether to enter into foreign
market because they were worried that this decision sometimes results in losing their
position in the Chinese market.
 The growth rate of domestic sales were decreasing.
 High competition from multinational competitors.
 High demand for overseas manufactured product.

2. Recapitulate all Principles, frameworks or theories that can be applied to this case.

SWOT analysis
 Strength: cheap Chinese labor, high reaction speed of the market and the company is
also customer oriented.
 Weakness: lower capacity in case of production and also high cost of production.
 Opportunity: advancements in technology and high demand of goods in market.
 Threats : excess competition and lesser growth of market

3. List relevant qualitative data: Evidence related to or based on the quality or character of
something of relevance mentioned in the case
 Haier offer good quality of products.
 They possess an excellent distribution channel which is one of their competitive
advantage
 Investment in research and development.
 Global expansion through joint ventures with multinational companies.
 Entrance of foreign multinationals which increases the competition in the
market.
4. List relevant quantitative data: Evidence related to or based on the quantity or number
of something- even numbers derived based on conversations (tables are not essential)
 5000 overseas retail outlets and 10000 service outlets.
 Developed market contributes almost 70% of overseas sales.
 Revenue increases from 3% in 1998 to 17% in 2004
 Acquisition of 15 companies till 1997.
 Haier hold more than 30% of white goods market
 3rd largest white good revenue earned firm
 2nd largest global refrigerator manufacturer.
 There are 10 industrial parks and 22 plants overseas to meet the demand in
local market.

5. List the results of your analysis: What are the interpretations that may be proposed
based on the quantitative & qualitative data you have gathered.

Based on all studies the three main areas Haier focus are innovation, superior service and local
distribution.
They always focus on customized good in law cost.
They give importance to the after sale service and try to make them superior.
They also focus on their distribution system and try to maintain them alive always.

6. Identify alternative courses of action: List and prioritize possible options based on your
analysis (actionable items alone).

 They can focus more on marketing and branding their product among the
market.
 Product differentiation and speed response to market should be focuses.
 They can also enter into new sectors.
 Should make use of modern technologies to create a brand image in the market.
7. Select your preferred action plan: Recommend the way forward: it may have steps to be
taken in the short term, medium term and long-term.

Haier should adopt some action plans for both their domestic and global market and that may
not be the same.
For domestic market they should focus on innovation, more penetration to rural market as well
as quick response to market changes.
For global market they should try to build a brand image, focus on customer needs and also
give importance to product quality and after sales services.

Name: KIRAN JOHN

Roll No. B2083