Analysis of Haier Group's Expansion Into China
The Haier Group is one of the world’s largest whitegoods manufactures with over 50 000 employees worldwide. The group was founded as “Qingdao Refrigerator Co.” in 1984 in Qingdao, Shandong Province, China. Haier Group has become a multi-billion dollar multinational with presence in over 100 countries (The Haier Group, 2007).
Throughout the course of Haier Group’s history, the firm has pursued an aggressive globalization strategy. Over the past twenty years, the group has expanded from its origins in China to regional markets in Europe, and North America, and Southeast Asia.
The Haier Group’s internationalization efforts can be broken down into a segmented timeline which extends from the late 1980s to present.
1984-1992
During the early 1990s, Haier Group began its internationalization efforts by expanding into Europe. It chose Germany as its primary destination and, in 1990, shipped its first batch of refrigerators. A year later, in 1991, it adopted its global brand name “Haier” from a German appliance maker that supplied technology to the company in its early days (Landler, 2000). The new name, replacing “Qingdao Refrigerator Co.”, provided the group with a recognizable name which could be marketed internationally.
1992-1998
After becoming certified with the ISO 9001 certification in 1992, The Haier Group launched an initial public offering on the Shanghai Stock Exchange under “Qingdao Haier Refrigerator Co.” which raised over 370 million RNY (Reminbi). (The Haier Group , 2007) The capital raised was predominantly used to fuel further expansion into emerging markets.
Simultaneously with the IPO, The Haier Group expanded into the Middle East Market and began exporting products in OEM form to the United States in 1995. The group planned to roll-out OEM products to the USA to assess the markets potential before exporting Haier branded products. By 1996, Haier Group expanded its product base to include commercial air-conditioners and front-loading
Throughout the course of Haier Group’s history, the firm has pursued an aggressive globalization strategy. Over the past twenty years, the group has expanded from its origins in China to regional markets in Europe, and North America, and Southeast Asia.
The Haier Group’s internationalization efforts can be broken down into a segmented timeline which extends from the late 1980s to present.
1984-1992
During the early 1990s, Haier Group began its internationalization efforts by expanding into Europe. It chose Germany as its primary destination and, in 1990, shipped its first batch of refrigerators. A year later, in 1991, it adopted its global brand name “Haier” from a German appliance maker that supplied technology to the company in its early days (Landler, 2000). The new name, replacing “Qingdao Refrigerator Co.”, provided the group with a recognizable name which could be marketed internationally.
1992-1998
After becoming certified with the ISO 9001 certification in 1992, The Haier Group launched an initial public offering on the Shanghai Stock Exchange under “Qingdao Haier Refrigerator Co.” which raised over 370 million RNY (Reminbi). (The Haier Group , 2007) The capital raised was predominantly used to fuel further expansion into emerging markets.
Simultaneously with the IPO, The Haier Group expanded into the Middle East Market and began exporting products in OEM form to the United States in 1995. The group planned to roll-out OEM products to the USA to assess the markets potential before exporting Haier branded products. By 1996, Haier Group expanded its product base to include commercial air-conditioners and front-loading
Bibliography: Business Week . (1999). Zhang Ruimin, CEO, Haier Group, China . Retrieved from Business Week International Edition : http://www.businessweek.com/1999/99_24/b3633071.htm Landler, M. (2000, July 23). BUSINESS; In China, a Management Maverick Builds a Brand . Retrieved from New York Times: http://query.nytimes.com/gst/fullpage.html?res=9D06EEDA173AF930A15754C0A9669C8B63&sec=&spon=&pagewanted=all McKinsey & Company. (2005, June 21). China 's refrigerator magnate. Retrieved from The McKinsey Quarterly: http://www.acleareye.com/The%20McKinsey%20Quarterly_%20The%20Online%20Journal%20of%20McKinsey%20%20Co..pdf Reference for Business. (2007). Haier Group Corporation - Company Profile. Retrieved from Reference for Business: http://www.referenceforbusiness.com/history2/94/Haier-Group-Corporation.html The Haier Group . (2007). About Haeir - Milestones. Retrieved from About The Haier Group : http://www.haier.com/abouthaier/Milestones/index.asp The Haier Group. (2007). Company Background. Retrieved from About The Haier Group: http://www.haier.com/abouthaier/CorporateProfile/index.asp