Competitive Strategy and Innovation

Competitive Strategy And
Innovation

Table of Contents

INTRODUCTION
A competitive strategy defined as a long term plan of action here an organisation devises
for accomplishing all the competitive advantages over its competitors after analysing the strength
as well as weakness of the latter and comparing them to its own. These strategy related with the
innovation because for launch new products & services require to apply new competitive
strategy to get success. Innovation is a procedure where consisting of different activities to
disclose new ways to do things. Through this procedure create bigger opportunities and are
critical for the survival, economic growth and success of an organisation. This report based on
the case A of Haier group is a multinational home appliances and consumer electronics
organisation. The company situated in Qingdao, china and design & produces products like
refrigerator, microwave ovens and many others. In this report consist of primary characteristic of
the internalization scheme of 1990 and changes in western enterprises. Along with analysis
success of plan of action and important features of Haier management system.
CASE A
1. Main features of Haier's internationalization strategy
Contemporary strategy evaluation select by manager with the concepts, framework and
techniques required to make better strategic decisions (Bouncken And et.al ., 2019. ). These
strategies endeavours to be both rigours and relevant. Internationalization strategy is defined as
distributed subsidiaries act independently and conduct as if they were belonging from local
organisation with lesser connection from the parent organisation. These strategy leads as high
level of selection to the local business environment. There are defined different dimension of
group action scheme since the early 1990s. During the 1990s, Haier taken 16 other Chinese
companies with the outcomes that it became a supplier not only a wide network of domestic
appliances but also televisions, telecom equipments and other consumer electronic products. Entered a number of overseas market: From the starting of 1992 to 1997 Haier set up a
number of partnership mainly in particular place of Asian to analysis active concern
systems. Directly export: The company take decision to manufacturer in China and exportation to
another nations to secure from set again cost and tardily cover all over the industry
effectively.
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 Divided production strategy: As per the development market has been divided into
different segments but company apply demographic age segments where categorised by
age such as 18-25, 25-30, 28-40 and 40-55 to target various customer based as per the
orientation as well as expending. Covering all retable organisations: Haier conducted analysis to collect information about
relatable companies after that take relevant steps in the context of an organisation (Chen
and Liu, 2019). Established good brand image at market place : Due to coming different changes
company change their pricing policies that based on low to middle class people to
enhance the profitability of the business.
 Set up subsidiaries in various industries: The company open new subsidiaries into
different enterprises after collect information and it is profitable for the business.
The company has been following different strategy at different stages which is started
from 1984 to 2015 and as per the changes apply changes in products and related strategy. In the
year of 1984 Haier follow brand building strategy where existence inside the Chinese activity by
select and client services. In 1991, apply condition approaches in which company adopt other
Chinese industries to increase product network. After that apply internationalization strategy in
1998 to enter 19 different international market as well as sustain as the global largest internal
convenience institution in regards of technology of results. Due to coming changes in modern
enterprises company apply global brand strategy in 2005 where alteration as per commodity
motivated to a consumer driven as per the request manner. Economic process utilise world origin
to develop organisation in regard of localized mainstream brands. After that in 2012 apply the
networking strategy where system undertaking scheme personify (Cornett, Erhemjamts and
Tehranian, 2019). These strategies are changing as per the international development of Western
enterprises. All the features are different from international development because when
organization enhance its operations into other countries so apply different types of strategies.
According to Western entities set particular scale of system which is utilized by the
business to set effective level of different items that offered by the organisation at the market
place. According to that company preparing different types of strategies for selling and take
effective decision in regard of business. Haier set new strategies for their products and connect
wit joint ventures to sell it their products in another nation easily. It helps to understand another
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