Haier Refrigerators Case Study
HARvARD | "rsrNEss
l r"Hoor
9-705-475
REV: APRIL 21,2O1r
PANKAJ GHEMAWAT TI.IOMAS M- HOUT
]OItDAN SIEGEL
Haier's f,r.S. Refrigerator Strategy
The obiectiue of most Chinese enterprises is to export products and earn foreign currency, exploing easier markets first like Southeast Asi1. . . Our purpose is to establish a branil reputation Ay , Tirit penitrating dfficult markets such as the United States. . . . All success relies on one thing in werseas iark*s---ereatingi
Iocalized U.S. brand instead of an imported Chinese brand. We see an-opportunity to compete against established, slotn moving companies thue by being more customer-focused than they ire. To win wei those customers ute haae twa approaches-speed and differentiation.
the original comPany was a collectively owned enterprise in the same northeast coastal municipaliiy that produced the popular-Tsingtao beer. Haier became a conglomerate electrical home appliance and consumer electronic products company. Its core businesJ was white goods-refrigerators and freezers-, ranges, and microwarru orru.s, bishwashers, and washing machinls and dryer!-and room air conditioners. Later, it diversified into mobile telephones, televiJion receivers, persbnal computers, and even financial services and pharmaceuticals. Overall it produced 96 different product lines comprising 15,100 different product specifications. It employed over 35,000 people worldwide.
Haier Groupl -Zhang The Haier Group was one of China's most accomplished and important companies, with estimated global sales n 2W7 of $16 billion. Founded in 1tS4 as the Qingdio Refrigerator Companp
Ruimin, CEO
comPany.
Haier was one of the wotld's severr biggest home appliance makers-along with LG (Goldstar) Group and Matsushita headquartered in Aiia; Whirlpoot ana GE in America] and Electrolux and Bosch-Siemens in Europe. Haier was widely regarded as China's "Most Admired,, large domestic company and was rated as China's strongest domestic
l r"Hoor
9-705-475
REV: APRIL 21,2O1r
PANKAJ GHEMAWAT TI.IOMAS M- HOUT
]OItDAN SIEGEL
Haier's f,r.S. Refrigerator Strategy
The obiectiue of most Chinese enterprises is to export products and earn foreign currency, exploing easier markets first like Southeast Asi1. . . Our purpose is to establish a branil reputation Ay , Tirit penitrating dfficult markets such as the United States. . . . All success relies on one thing in werseas iark*s---ereatingi
Iocalized U.S. brand instead of an imported Chinese brand. We see an-opportunity to compete against established, slotn moving companies thue by being more customer-focused than they ire. To win wei those customers ute haae twa approaches-speed and differentiation.
the original comPany was a collectively owned enterprise in the same northeast coastal municipaliiy that produced the popular-Tsingtao beer. Haier became a conglomerate electrical home appliance and consumer electronic products company. Its core businesJ was white goods-refrigerators and freezers-, ranges, and microwarru orru.s, bishwashers, and washing machinls and dryer!-and room air conditioners. Later, it diversified into mobile telephones, televiJion receivers, persbnal computers, and even financial services and pharmaceuticals. Overall it produced 96 different product lines comprising 15,100 different product specifications. It employed over 35,000 people worldwide.
Haier Groupl -Zhang The Haier Group was one of China's most accomplished and important companies, with estimated global sales n 2W7 of $16 billion. Founded in 1tS4 as the Qingdio Refrigerator Companp
Ruimin, CEO
comPany.
Haier was one of the wotld's severr biggest home appliance makers-along with LG (Goldstar) Group and Matsushita headquartered in Aiia; Whirlpoot ana GE in America] and Electrolux and Bosch-Siemens in Europe. Haier was widely regarded as China's "Most Admired,, large domestic company and was rated as China's strongest domestic