Haier their initial domestic market by identifying the

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(Haier Group Corporation) originally Chinese brand that was focused on
tendering their local market. Haier was previously known as Qingdao
Refrigerator Company (Haier Group Corporation, n.d). Haier was in debt and
producing very few refrigerators in the 1980s (Fischer, B., Lago, U., &
Liu, F., 2015). Haier then hired Zhang Ruimin to be managing director; Zhang
went to their warehouse and destroyed all faulty refrigerators (Fischer, B.,
Lago, U., & Liu, F., 2015). At the time their local market was competing in
a price war over refrigerators, for this reason low costs means low quality
products. The message from this day forward was to ensure the quality of the
product they were selling. Haier received a complaint that their washing
machine was not performing to the standards Haier is held to, upon inspection
it was because vegetables were being washed in the machine (Fischer, B., Lago,
U., & Liu, F., 2015). Thus, Haier adapted and released a vegetable washing
machine for this new market.

started to adapt products for small areas with very little competition, just
like the vegetable washing machine. Haier launched a mini fridge after
assessing the needs of college students and their small (dorm) living space.
While in other areas like Pakistan led to Haier producing very large washing
machines to satisfy the washing of normal Pakistan clothing/heavier clothing
loads (Haier Group Corporation, n.d).

would asses an area, see the needs and innovate a product to solve those
issues. Haier was making what is referred to niche products (Fischer, B., Lago,
U., & Liu, F., 2015). Products that were specific to issues arriving in
everyday life targeted towards specific areas of the world.

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culture challenge that Haier faced was initially was being able compete with
local companies selling products for lower prices or with more reputation. To
compete better Haier opened production centres all over the world to not only
distribute faster but expand as a global enterprise.

a global company, Haier is a successful one. Haier expanded beyond their
initial domestic market by identifying the needs of other markets. Haier then
positioned themselves in markets with the least competition while building the
brand up. Overtime as Haier rised globally they expanded and added factories across
the globe. Haier can manufacture their product even more specific to the region
by having plants in the country. Thus, making Haier an example of a successful global

Categories: Culture


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