Analysis of the Issue of Haier U.S Expansion in the American Market

Running head: HAIER U.S EXPANSION
HAIER U.S EXPANSION
Name of the student
Name of the university
Author note

2HAIER U.S EXPANSION
Executive summary
The aim of the report is to analyse the issue of Haier U. S expansion the American market. This
report has been divided into eight distinct parts. The initial part of the report deals with the core
and distinctive competencies of the company. This analysis has been completed through the use
of Porters five forces model and the SWOT model. The last part of the report deals with the
analysis of the scope of the market in the KSA. This report is presentation of the analysis of the
company within the context of America and the global market.

3HAIER U.S EXPANSION
Table of Contents
Introduction......................................................................................................................................4
Summary of the case........................................................................................................................4
Strengths..........................................................................................................................................9
Large market share......................................................................................................................9
Trusted brand...............................................................................................................................9
Weakness.........................................................................................................................................9
Dependence on china...................................................................................................................9
Dependent on government subsidies...........................................................................................9
Opportunities.................................................................................................................................10
Joint venture...............................................................................................................................10
Wide range of products..............................................................................................................10
Threats...........................................................................................................................................10
Large number of competitors:...................................................................................................10
Rising wages:.............................................................................................................................10
Conclusion.....................................................................................................................................10
References and bibliography.........................................................................................................12

4HAIER U.S EXPANSION
The Haier Group: U.S. Expansion
Introduction
The aim of the report is to analyse the given case study and answer the following
question with an aim to understand the issue from a holistic perspective. This paper is divided
into right parts and each of them is dealing with issues related to the case study. This is the
analysis for the global expansion of the company, Haier.
Summary of the case
1. The Chinese home appliances company, the Haier group is the manufacturer of the
consumer electronics ad home appliance. This company being founded in 1984 shares the aim of
spreading beyond the boundary of China. When it started it was a company that was owned by
the government and mostly dealt with household products. However the company aims to
expand d beyond china and it focuses on major diversification of products to have larger target
market. Selecting their core competencies, the company has decided to go for
internationalisation. This internationalisation process required the company to utilise their core
competencies to target the small market niches that are ignored by the large competitors of the
market. However in doing so, the company faced with certain challenges and some of them are
associated with placing itself in the market and building their brand recognition in U.S. It also
has goals related to achieving quality services and creating a solid base for the customer that can
separate it from the rest of the competitors. Through this process, the company faces one of the