Professional Documents
Culture Documents
COMPANY GLOBAL
GROUP 9, SECTION B
Nikita Runwal 96
Tanya 119
Venkatesh Balakrishnan 124
Abhiav Tandon 126
Kaustubh Dudhane 141
CASE OVERVIEW
Originated 1984
Commitment to quality
Risk of IPO
Brand
Reputati
on
1) Product
Differentiation
2) Response Speed
Service
MARKET ADVANTAGES
Service
1. Computerized
system
2. After-sales service
3. Cheap, efficient and
AGGREGATION
ARBITRAGE
Capabilities
Potential
access to
wide variety
of markets
Value
contributed
to end
product
Difficulty in
imitation/sub
stitution
Sales &
Marketing
10% of
revenue on
branding and
marketing
Good brand
image
Yes
High
Low
Operation
s
Foreign
Technology
Highest
quality
products
Yes
High
High
JIT order
execution,
tapped retail
channels
Computerized
system for
customer
tracking,
Customer
hotline
number
Reduced
Inventory
Yes
High
Low
Quick and
effective
customer
service, high
customer
satisfaction
Yes
High
High
Strong
financial base
Easy access
to funds, can
attract
talented
workforce,
acquisitions
and global
expansion
Yes
Low
Low
5-7% of
revenue in
R&D
New
innovative
and
differentiated
products
Yes
High
High
Highly
Expertise in
handling
Distribution
After
Sales
services
Financial
Researc
h and
Innovati
on
Human
Strategy
Focus on difficult
markets first
Advantages
Disadvantages
Difficult to enter
Global knowledge
High competition
Staff with
locals Disadvantages
Advantages
Local market
knowledge
Highly dependent
on local Head of
Operations
Creating a local
brand image
Decentralized
approach
No knowledge
transfer across
regions
Low-range product
image
First mover
advantage
Limited consumers
in target segment
Relationship with
major retail chains
such as Wal-mart
and Best Buy
Brand building
Advantages
s to penetrate disruptively targeted consumer segments, offering niche products and engaging locals
ed of design and manufacturing aided through 18 global design centers
Global Standardization
Hig
h
Customer Focused
Catering to local needs
Followed two-pronged
stretagy:
Product differentiation
Response speed
Localized Manufacturing
Low
Hig
Low
h
Need for Local Responsiveness
ADVANTAGES OF LOCALIZATION
STRATEGY
No Direct Competition
Global
Brand
Internationaliza
tion
Intelligent Home
Appliances
Focus on new
generation productsIntegrating IT with its
expertise
Diversificat
ion
Brand
Building
1984
1991
1998
2005
Securing Human
Resources Needed to
maintain rapid growth
and to manage foreign
markets
Revenue
100
Exports as % of Total
revenue
9
8
7
95
6
90
5
4
85
3
2
80
1
75
1998
1999
2000
2001
2002
2003
2004
Overseas Sales as % of
Total revenue
8
7
6
5
4
3
2
1
0
2002
2003
2004
0
1998
1999
2000
2001
2002
2003
2004
10%
2003
Domest
ic
17%
20%
2004
2003
25%
2004
Exports
2003
2004
Sluggishness in growth
rates in the Domestic
market is compensated
by the huge growth in
Exports and Overseas
markets
Overse
as
Skilled labour
100
Related and Supporting Industries
50
Quantity of labour/Output
South Korea
Demand Conditions
China
Natural Resources
Koreans reap
value at each
stage- sign of a
more advanced
economy based
on advanced
factors
LOCALIZATION
STRATEGY
HAIERs STRATEGY
Defender
The an
Set
Haiers
company
example
enjoys
for other
a 40%
Chinese
market
companies
share for household
that cultivating
appliances
an international
in China and
bran
h
Haier made
quality a priority,
putting into place
a comprehensive
quality
management
system
Haier
consolidated
global resources
in R&D,
manufacturing,
and marketing
to create a
global brand
Win-win Model
of IndividualGoal
Combination
Implementing the
development
strategy of a
networked
enterprise is
embodied in three
respects: borderfree enterprise,
manager-free
management and
scale-free supply
chain
CURRENT SCENERIO
REFERENCES
http://www.haier.net/en/about_haier/haie
r_strategy/
http://www.haier.com/in/header/201110
/t20111027_83001.shtml
THANK YOU!