Case Analysis of Haier
Case Analysis of Haier
A little background:
Haier, a Chinese enterprise founded in 1984. After thirty years research and development, it has become a successful case that leads Chinese enterprises to the whole world. Qingdao Electrical Appliance Factory which is the predecessor of Haier, it was a Chinese government collectively-owned enterprise, since Zhang Ruimin took over it, he found the shareholder agreement of Qingdao Electrical Appliance Factory, then defined Haier a private enterprise and made it listed in China.
It is Mr. Zhang’s effort that makes Haier such a successful enterprise today. Now, Haier from a small falling collectively owned enterprise develops into the globe best brand in white goods area.
The reason for Haier’s success in China: In 1980s, there were about three hundred refrigerator manufacturers, but almost all the local companies produced substandard products, included Haier. Mr. Zhang thought, in order to increase the competitively, the quality of the product should be improved then get the approval from costumes and also get the brand loyalty. Mr. Zhang destroyed the substandard refrigerators which worth about seven hundred thousand RMB in public to enhance the motivation of the employees. Obviously, that really works; the employees realized the importance of quality.
The good quality is one of the most important reasons for the success of Haier. At the same time, Mr. Zhang got the support from government, so he got the loan from the bank easily. Before Haier went first IPO in China, Mr. Zhang got about 17 millions RMB loan from bank. And for improving the quality of product, he used more than two millions RMB to buy the full production technology of refrigerator from a Germen company. Haier also used the local resource and cheap labor, used the lowest cost to produce the product with highest quality in China.
Another factor for its success was the severe shortage of supply in the refrigerator filed at that time, which
A little background:
Haier, a Chinese enterprise founded in 1984. After thirty years research and development, it has become a successful case that leads Chinese enterprises to the whole world. Qingdao Electrical Appliance Factory which is the predecessor of Haier, it was a Chinese government collectively-owned enterprise, since Zhang Ruimin took over it, he found the shareholder agreement of Qingdao Electrical Appliance Factory, then defined Haier a private enterprise and made it listed in China.
It is Mr. Zhang’s effort that makes Haier such a successful enterprise today. Now, Haier from a small falling collectively owned enterprise develops into the globe best brand in white goods area.
The reason for Haier’s success in China: In 1980s, there were about three hundred refrigerator manufacturers, but almost all the local companies produced substandard products, included Haier. Mr. Zhang thought, in order to increase the competitively, the quality of the product should be improved then get the approval from costumes and also get the brand loyalty. Mr. Zhang destroyed the substandard refrigerators which worth about seven hundred thousand RMB in public to enhance the motivation of the employees. Obviously, that really works; the employees realized the importance of quality.
The good quality is one of the most important reasons for the success of Haier. At the same time, Mr. Zhang got the support from government, so he got the loan from the bank easily. Before Haier went first IPO in China, Mr. Zhang got about 17 millions RMB loan from bank. And for improving the quality of product, he used more than two millions RMB to buy the full production technology of refrigerator from a Germen company. Haier also used the local resource and cheap labor, used the lowest cost to produce the product with highest quality in China.
Another factor for its success was the severe shortage of supply in the refrigerator filed at that time, which