Haier - The Chinese Global Competitor

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : BSTR181 Electronic Format: Rs. 400;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies


Globalization | Turnaround
Case Length : 15 Pages
Period : 1995-2005
Organization : Haier
Pub Date : 2005
Teaching Note : Not Available
Countries : India
Industry : Consumer Electronics


The case discusses the transformation of China based Haier Group from a bankrupt, government-controlled collective enterprise in 1984 into a global consumer electronics giant by the early 2000s. The case describes the business environment in China and Haier's unique work culture which helped the company emerge as the leading home appliance manufacturer in the country. It then examines Haier's efforts to gain a foothold in the global markets including the US, European and Asian countries. The case details the major strategies adopted by Haier in response to the business environment it operated in, pertaining to quality improvement, acquisition, diversification, technology upgradation and globalization. Finally, it explores the challenges that Haier could face in taking its globalization efforts further.

The case will help students gain an understanding of the external business environment of a firm, importance of corporate culture, rationale behind globalization, globalization strategies and the challenges faced by firms in globalizing their operations.


Understand the business environment that existed in China prior to the reforms introduced by Deng Xiaoping in the early 1980s
Appreciate the role played by corporate culture in turning companies around
Understand the importance of acquisitions and alliances in diversification and globalization
Gain understanding on the factors that drive companies to globalize
Appreciate how visionary leadership can work as a core advantage for a company to attain success in global markets
Examine how innovation and differentiation of products can be used to enter new markets


  Page No.
Introduction 1
Background Note 2
Turning Around Sick Companies - The Haier Way 5
The Globalization Efforts 7
The Road Ahead 10
Exhibits 12


Haier Group, Maytag Corporation, OEC Management System, 3E Evaluation Parameters, Brand Building, Organizational Culture, Product Design, Collective Enterprises, Worker Management and Chinese Home Appliances Industry

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