International Business Report: Analyzing Haier's Global Strategy

This report provides an in-depth analysis of Haier's global strategy, focusing on how the company tackles the challenges posed by the CAGE framework (Culture, Administration, Geography, and Economics). The report highlights Haier's emphasis on product quality and innovative technologies, such as their powder-free wash technology and anti-electricity wall technology, as key strategies. The report also examines Haier's 'three-in-one' strategy, encompassing design, product, and distribution, which allows the company to understand and cater to local customer preferences in new markets. Furthermore, the report discusses Haier's efforts to adapt to different cultures and offer products tailored to specific needs, contributing to its success as a global white goods manufacturer. The analysis includes a review of Haier's networking strategy implemented in 2013, and its impact on business development. The report concludes by emphasizing the effectiveness of these strategies in mitigating CAGE problems and achieving success in international markets. The report also cites several academic sources to support the analysis.

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International Business
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c) Global Strategy of Haier to deal with CAGE problem
Product quality of Haier is one of the major strategies that lead them to expand their
market share in global market. Product quality is a big element of the success of an organization
(Peppers & Rogers 2016). However, this organization has smashed 76 poor refrigerators in order
to improve their innovation and quality assurance. Adoption of new technology is one of the vital
approaches of such organization to reduce the CAGE problem in the global market operation.
Their powder free wash technology and anti-electricity wall technology are used in the
development of products; these are considered as crucial strategies to improve their global
operation. However, the refrigerators and the washing machines of such organization are
awarded as the first group of products in Chinese world. This award is provided by the general
administration of the quality supervision, which turns them to improve their strategic
management to minimize the CAGE problem.
Three in one strategy of Haier is the vital strategy that enables them to deal with the
current market. Strategy is the crucial thing for an organization to deal with their business issue
(Ferraro & Briody, 2017). This strategy includes design, product and distribution all over the
country. This helps them helps them to understand the preference of the local customers in a new
market. On the other hand, Haier gives their effort to adopt cultures in different countries and
offer products based on the need of different cultures. This boots them to act as a white good
manufacturer in the global market. However, their strategy is their big strength, which influences
them to serve as the good manufacturer in the domestic as well as in the global market (Slack,
2015).

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Strategy acts as the growth factor of an organization (Priem, Wenzel & Koch, 2017).
Their innovative idea is their major factor that leads them towards the success. In the year 2013
they have implemented networking strategy that is crucial for their business development. Such
above strategies are beneficial for them to reduce the CAGE problem in global market operation.
However, in the US market, their three in one strategy enables them to operate properly by
improving their product, design and distribution approaches.

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References
Ferraro, G. P., & Briody, E. K. (2017). The cultural dimension of global business. Taylor &
Francis.
Peppers, D., & Rogers, M. (2016). Managing Customer Experience and Relationships: A
Strategic Framework. John Wiley & Sons.
Priem, R. L., Wenzel, M., & Koch, J. (2017). Demand-side strategy and business models: Putting
value creation for consumers center stage. Long Range Planning.
Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.