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    Haier Case BADM 449

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    Nhi Nguyễn
    Haier was successful in China due to its strong brand reputation for home appliances, holding large market shares. It established many distribution centers to meet consumer demand. Entering developed global markets early with niche products like compact refrigerators was a good strategy, though they faced challenges as an unknown brand. Haier can likely continue expanding globally by building on niche product successes to establish its brand quality, but its "three thirds" strategy may not be viable in mature markets where heavy focus is needed to stay competitive.

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    Haier Case BADM 449

    Uploaded by

    Nhi Nguyễn
    16 views2 pages
    Haier was successful in China due to its strong brand reputation for home appliances, holding large market shares. It established many distribution centers to meet consumer demand. Entering developed global markets early with niche products like compact refrigerators was a good strategy, though they faced challenges as an unknown brand. Haier can likely continue expanding globally by building on niche product successes to establish its brand quality, but its "three thirds" strategy may not be viable in mature markets where heavy focus is needed to stay competitive.

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    Haier_Case_BADM_449.docx

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    Haier was successful in China due to its strong brand reputation for home appliances, holding large market shares. It established many distribution centers to meet consumer demand. Entering developed global markets early with niche products like compact refrigerators was a good strategy, though they faced challenges as an unknown brand. Haier can likely continue expanding globally by building on niche product successes to establish its brand quality, but its "three thirds" strategy may not be viable in mature markets where heavy focus is needed to stay competitive.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views2 pages

    Haier Case BADM 449

    Uploaded by

    Nhi Nguyễn
    Haier was successful in China due to its strong brand reputation for home appliances, holding large market shares. It established many distribution centers to meet consumer demand. Entering developed global markets early with niche products like compact refrigerators was a good strategy, though they faced challenges as an unknown brand. Haier can likely continue expanding globally by building on niche product successes to establish its brand quality, but its "three thirds" strategy may not be viable in mature markets where heavy focus is needed to stay competitive.

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    © All Rights Reserved
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    Haier Case BADM 449

    ● Why was Haier so successful in China?


    ● Haier’s key success in China was its reputation as the premier brand for home
    appliances. They held 27% of the market share in refrigerators and 61% of profits
    in the home appliance industry. Their biggest competencies included market
    responsiveness and product distribution. According to consumers the company’s
    strongest asset is their ability to meet and respond to consumer demands. They
    even established 42 distribution centers throughout the country to stay ahead of
    consumers’ demand and produce in greater volume.
    ● Was Haier’s decision to globalize into developed markets early on a good strategy?
    ● The decision to globalize into developed markets early proved to be a good
    strategy for Haier. They focused on the more difficult, already developed markets
    first. They put their energy in these markets on niche products. For example,
    when entering the U.S. market, they noticed that there was potential for students
    and offices for mini or compact refrigerators.They marketed towards college
    students and offices and offered quality products with unique features. There were
    drawbacks to this approach including that they were an unknown brand
    penetrating an already developed market. However, their strategy to introduce
    niche products brought high margins and faced minimal competition.
    ● Can Haier build on its success in niche products to become a dominant global brand in
    high-end white goods?
    ● Haier’s strategy was to test the waters and avoid competition by introducing niche
    products in the global market. Their strategy proved successful since these
    products brought in high margins and gained the attention of major retail chains.
    When they began to introduce their other appliances however, they did not receive
    the same response, because people, especially in the U.S., thought of Chinese
    products as lower quality. For this reason, I think they can further build on their
    success with niche products and become a dominant player. They can continue to
    succeed in this market and eventually they can further establish their brand and
    eventually succeed with the high-end white goods.
    ● Is Haier’s “three thirds” strategy a viable or wise approach?
    ● They implemented the “Three Thirds” strategy with the goal to equally gain
    revenue from three areas: goods produced and sold in China, goods produced in
    China and sold overseas, and goods produced and sold overseas. This approach is
    viable depending on the market it is targeting. If they are targeting a mature,
    developed market, it is not viable. Since it is such a big player, they would need to
    focus more heavily and lose momentum in their other markets just to stay
    competitive. It is more viable for them to use this approach in an emerging market

    This study source was downloaded by 100000875852533 from CourseHero.com on 11-17-2023 08:44:58 GMT -06:00

    https://www.coursehero.com/file/71706915/Haier-Case-BADM-449docx/
    where they could introduce themselves as a strong brand and continuously
    improve.

    This study source was downloaded by 100000875852533 from CourseHero.com on 11-17-2023 08:44:58 GMT -06:00

    https://www.coursehero.com/file/71706915/Haier-Case-BADM-449docx/
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