Haier's Internationalisation Strategy and Management System

Competitive Strategy &
Innovation

Table of Contents
Introduction .....................................................................................................................................1
Case Study ......................................................................................................................................1
Discuss the main features of Haier's internationalisation strategy since 1990 and how it is
different from the pattern of internationalisation typical of western enterprises...................1
Assess how successful has Haier's internationalisation strategy has been and why..............3
Discuss what are the principal attribute of Haier's management system also how do they differ
from those traditionally deployed by Western companies.....................................................5
Conclusion.......................................................................................................................................7
References ......................................................................................................................................8

Introduction
The internationalisation strategy involves the detailed plan or strategy developed and
implemented in to smoothly carry out their business at the international level effectively. It helps
business organisation to easily expand their business at the international level through
minimising the risk. International strategy involves analysing and evaluating the international
market, availability of resources , determining international goals also evaluating the market
dynamics effectively. It helps enhancing the overall performance of the company. For this report
the Haier Group is taken into consideration. This report highlights main features of the
internationalisation strategy of the chosen company and how different from the western
enterprises. Also the effectiveness of the Haier's internationalisation strategy along with the
principle features of the company's management system and how they differ from the western
company is also highlighted in this report.
Case Study
Discuss the main features of Haier's internationalisation strategy since 1990 and how it is
different from the pattern of internationalisation typical of western enterprises
The Haier group is one of the top and biggest producer of the essential home appliances
from 1990, offering their services around the world effectively. Company was founded in 1984
offering wide range of home appliances services to their customers around the world effectively.
In the earlier development the company under the guidance of CEO, Zhang Ruimin mainly
focused on the refrigerator market mainly through the imported technology from the Germany.
The main focus of the company was to offer quality products and services to their target
customers in order to gain competitive advantage in the marketplace effectively. The company
mainly focused on enhancing their quality so as to achieve the international quality standards
which requires a essential reformulation and improvement in their process effectively. Zhang's
focused on customers services and his efforts of developing an after sales services network
helped him in 1990 through implementing a computerised services which allows them to
effectively monitored their customers. In the year 1990 , the company acquired 16 other Chinese
companies which lead them to enhance their services not only in the domestic appliances but also
in television, telecommunication tools also other consumers electronics products. The
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internationalisation strategy is the detailed planning which helps in the effectively carrying out
the business activity at the international level. The Haier company started focusing on their
internationalisation process between the 1992 and 1997, the company entered into company of
international markets such as
 In south East Asia, mainly in Indonesia, Philippines and Malaysia, company started their
business through the joint venture with the local companies allowing them to
manufacture and sell the refrigerator and air conditioners.
 In case of Us the company started offering the compact refrigerator to an importer,
allowing them to sell their products using their brand name.
 In the 1997 the company started exporting the appliances to countries like Germany,
Netherlands and Italy.
The internationalisation strategy adopted by the Haiers company allowed them to enhance their
performance in the international market effectively. One of the main feature of the Haier's
internationalisation strategy was its main focus on entering the international market and handling
the challenging and difficult markets effectively before handling the easy and less developed
countries. The main strategy followed by the company was to focus on entering the most
challenging market and also overcoming the most difficult process effectively. The company
started acquiring the small and medium sized industries of the others countries in order tro
expand their business in that particular market effectively. The CEO of the company earlier
stated that the main objective of the company's expansion to the international market is not to
enhance their profitability through exploiting their low manufacturing cost but to build strong
and effective brand image in the marketplace. In order to enhance their brand in the international
market the company focused on locally designed, locally made and locally sold approach which
makes them different from any other from the pattern of internationalisation strategy used by nay
other country or any other western enterprises. The CEO of the company stated that they have to
make the American realised that Haier is a localised US brand rather than feeling that it an
imported Chinese brand. Company's this internationalisation strategy made them different from
any other western enterprises and strategy used by them. The company's Locally designed,
locally made and locally sold approach includes three stages of development effectively which
are highlighted below:
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