Compare and contrast the appliance strategies used by another multinational appliance company such as LG, Samsung, Bosch-Siemens, Electrolux, Whirlpool, etc. and Haier.
For this week’s discussion, read the case study found in your textbook (Case 17): Haier Group: Internationalization Strategy.
Remember, a case study is a puzzle to be solved, so before reading and answering the specific case and study questions, develop your proposed solution by following these five steps:
Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course area which apply to the situation described in the case study.
Record the facts from the case study which are relevant to the principles and concepts of the course area issues. The case may have extraneous information not relevant to the current course area. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers.
Describe in some detail the actions that would address or correct the situation.
Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks.
Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case.
Case Study Questions:
Compare and contrast the appliance strategies used by another multinational appliance company such as LG, Samsung, Bosch-Siemens, Electrolux, Whirlpool, etc. and Haier.
What is Haier’s internationalization strategy?
Does Haier’s international strategy appear to be effective?
Is it likely that Haier’s success and management practices can be applied outside of China? Why or why not?
Embed course material concepts, principles, and theories (require supporting citations) in your initial response along with at least one scholarly, peer-reviewed journal article.
Case 17 Haier Group: Internationalization Strategy
The transformation of the bankrupt Qingdao General Refrigerator Factory into the Haier Group, the world’s biggest supplier of household appliances, is an epic tale that symbolizes China’s rise to become the world’s dominant manufacturing economy. In the process, Haier’s CEO, Zhang Ruimin, has become a national hero and internationally-renowned business leader who has been ranked among the world’s top-50 management thinkers.1 Since 2012, Euromonitor has recognized Haier as the world’s leading white goods producer in terms of units sold. In terms of revenues, the ranking is less clear (see Table 1). This is due to the complex legal structure of the Haier Group: fnancial data is only available for Haier’s listed subsidiaries, Qingdao Haier and Haier Electronics. However, with Haier’s acquisition of General Electric’s appliance division in 2016, it appears that Haier has become the world’s biggest domestic appliance company in terms of both output and revenues. Yet, Haier’s rise to global leadership, while inspiring, has also been baffing. Its internationalization has fouted almost all conventional thinking concerning strategies for building global competitive advantage. Indeed, the whole history of Haier has involved unusual—even quirky—management principles and practices. To what extent does Haier’s unconventional approach to strategy and management also offer lessons for the leaders of Western multinational corporations? And what about the future of Haier? Its global presence has been built upon a combination of opportunism, ambition, and determination. As it consolidates its position as a leading multinational corporation, does Haier need a more orderly and integrated approach to global strategy
Building Leadership in the Home Market
When Zhang Ruimin was appointed general manager of the Qingdao General Refrigerator Factory in 1984, it was a cooperative enterprise with about 800 workers operating under the control of the Qingdao city government. Zhang’s early efforts involved eliminating the obvious sources of ineffciency and poor quality and collaborating with foreign appliance makers—including Liebherr of Germany, Merloni of Italy, and Mitsubishi and Sanyo of Japan—to improve product design and process technology. In 1985, Qingdao Refrigerator formed a joint venture with Liebherr for producing refrigerators for the Chinese market. Zhang Ruimin has viewed Haier’s development as a sequential process with each phase lasting about seven years (see Figure 1). In the frst phase, the key challenge was
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