Haier : Taking a Chinese Company Global Group Name: BLUE OCEAN

Blue Ocean Pointing the main objectives of this part :Taking a Chinese Company Global Objectives Pointing the main objectives of this part Highlight: Quick search 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: Quick search 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 Quick search Case Background SWOT Analysis Organizational Strategies Global Marketing

Blue Ocean :Taking a Chinese Company Global SWOT Analysis: Strength Weakness 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 Very narrow product line Limited distribution Higher costs Weak market image Quick search Case Background SWOT Analysis Organizational Strategies Global Marketing

Blue Ocean :Taking a Chinese Company Global SWOT Analysis: Threat Opportunity 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 Opening of foreign markets New product discoveries Economic boom New technology Sales decline for a substitute product Complacent rival firms

Blue Ocean :Taking a Chinese Company Global Strategies: Growth and Diversification They Expand their product line Acquisition Quick search Operational Restructuring Case Background Operational reengineering Reconstruct their service blue print capital flow commerce flow material flow overseas E-commerce SWOT Analysis Organizational Strategies Global Marketing

Blue Ocean :Taking a Chinese Company Global Strategies: Chinese market Haier in domestic market Market skimming pricing Quality commitment Chronic price wars Quick search Case Background SWOT Analysis Organizational Strategies Global Marketing

Blue Ocean Channel Management Foreign Entrance Threat of mobility :Taking a Chinese Company Global Strategies: Chinese market Threat of mobility Preemptive defense Green marketing Foreign Entrance Quick search Case Background SWOT Analysis Organizational Strategies Channel Management Zero based channel Conventional distribution Selective distribution Global Marketing Two goal of zero based channel 1. Target customer have to fulfill the needs,2. cost is minimum

Blue Ocean :Taking a Chinese Company Global Strategies: Chinese market Product innovation Multiple usage Quick customer feedback Less lead time Efficient operation management Corporate VMS distribution Why does Haier make differences? Quick search Case Background SWOT Analysis Organizational Strategies Global Marketing Around 68% of customer switch to another brand because in absence of customer feedback Pushing Haier away ! Restricted store size Lack of complete infrastructure Lifestyle Guerilla competition

Blue Ocean :Taking a Chinese Company Global Strategies: International market Peep in International market Contract & JV Willing to establish as a independent player Analysis following criteria Competitive Opportunity Market customer Quick search Case Background SWOT Analysis Produced china, sold overseas Produced and sold in overseas Produced and sold in china Organizational Strategies Global Marketing

Blue Ocean Haier America Strategies :Taking a Chinese Company Global Strategies: International market Strategies First difficult then easy Threat of intense segment rivalry Host country nationals Employee empowerment Quick search Case Background SWOT Analysis Organizational Strategies Haier America Contraction defense strategy by competitor Gourmet pricing Global Marketing

Blue Ocean Haier europe Started-2000 Headquarter- Verse, Italy :Taking a Chinese Company Global Strategies: 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 Quick search Case Background SWOT Analysis Organizational Strategies Global Marketing

Blue Ocean Haier India Started-1999 with a an appliance :Taking a Chinese Company Global Strategies: 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 Quick search Case Background SWOT Analysis Organizational Strategies Global Marketing

Win the consumers Blue Ocean Product differentiation :Taking a Chinese Company Global Strategies: International market Win the consumers 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. Quick search Case Background SWOT Analysis Organizational Strategies Global Marketing

Blue Ocean The Next 20 Years :Taking a Chinese Company Global Strategies: 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 Quick search Case Background SWOT Analysis Organizational Strategies Global Marketing