Abstract

China-based Haier Group (Haier), the world’s largest home appliance brand, recorded revenues of US$ 32.6 billion and profit of US$ 2.40 billion in 2014. Haier, which began as a small refrigerator manufacturer based in Qingdao, Eastern China, had grown into a renowned global brand due to its commitment to high quality and focus on open innovation. The case focuses on the Innovative Business Model at Haier. It explores in depth the strategies the company adopted at different times to adapt to new challenges in the market. Hiaer, under the leadership of Zhang Ruimin, shifted gears from a quality focus to customer centric innovation to ZZJYTs. In 2013, the company again announced plans to incorporate internet networking as a part of the organization. The management style followed within the company evolved from an autocratic to a democratic one. An analysis of the case will lead to discussions on the skills or competencies that the company generated over time which made it possible for Haier to adapt to new organizational structures.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Learn about the Innovative Business Model at Haier and the steps taken that equipped the company to renovate whenever required.
• Analyze the challenges Zhang Ruimin faced in incorporating changes within the organization at various times.
• Critically analyze the goal of making Haier an internet-based firm.

Keywords

Haier, Zhang Rumin, ZZJYT, Strategic Business Unit, Innovation, customer centric innovation, Networking Strategy, Overall Every Control Clear, Total Quality Management