Rise of Haier as Global White Goods Manufacturer

Running head: RISE OF HAIER AS GLOBAL WHITE GOODS MANUFACTURER
Rise of Haier as Global White Goods Manufacturer
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1RISE OF HAIER AS GLOBAL WHITE GOODS MANUFACTURER
Haier Group has emerged as a supreme home electronic appliance maker in the world.
The general manager of Haier exhibited great amount of management talent and he laid stress
on the element of innovation along with quality assurance that helped Haier in gaining a
prominent position within the world market.
The key factor that helped in the rise of Haier is its independent intellectual property
and participation in the set up pertaining to 23 international standard. Haier has been
successful in developing new products that cab suit diverse preference pertaining to various
areas. Haier has been instrumental in making different variety of the home appliance in
around 100 product lines like freezer, air conditioner, washing machine and microwave ovens
(Hill et al., 2017). The primary factor that facilitated the rise of Haier as a white goods
manufacturer is foreign direct investment that helped the company in the arena of expanding
in the overseas markets. It has taken recourse to advanced technology that has helped it in
earning international brand name.
The global expansion of Haier was greatly facilitated by the joint venture that it had
with Indonesia in the year 1996 and the acquiring of the Italian fridge factory in the year
2000. The setting up of the design centre within Boston and the marketing centre within New
York helped in making Haier a global white goods manufacturer (Lewin, Välikangas &
Chen, 2017). The US subsidiary of China took advantage of the low costs within China by
buying components from that of Haier- China. Localisation strategy of Haier coupled with
the operational flexibility has helped in the rise of Haier as an international white goods
manufacturer. A factor that helped in the growth of Haier as white goods manufacturer is the
responsiveness of the company towards the needs pertaining to national markets. Haier made
computer-controlled refrigerator which was customised for that of the United States and
energy-economised home appliances for serving the customers in Italy. The main factor that