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Chinese MNCs

Marissa Mah

on 19 November 2012

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Transcript of Haier

Chinese MNCs Elie Beaino
Bassil Boulos
Melissa Boyars
Marissa Mah
Asia Wierzba PEST Political Economic Social Technology Legislation vs. Moral Values Collaborative Relationship Asian Corporate Governance Association Government Liaisons Low Interest Rates Strong National Economy Growing Real Estate and Construction Industries Traditional Values Confucianism Exiting Elderly > Entering Productive Young Hofstede's Culture Dimensions Slowing Production of Appliances Online Shopping Generic Strategy - Unique customer knoweldge
- Expand from local markets
- Experimentation
- Speed and differentiation
- Increase brand awareness Consumer Behaviour Change in Shopping Habits Before
- Premium goods
- Department stores
- Physical shopping
- Close to home Now
- Value goods
- Unique stores
- Digital shopping
- Willingness to travel - Uncertain Economic Conditions
- Globalization & Fierce world competition
- The changing nature and compositions of the workforce
- Rapid developments in new technology Dominant Economic Features and Drivers of Change Uncertain Economic Conditions "The weak performance of some Japanese major home appliance makers in recent years prompted some critics to say Japan's home appliance industry has begun to decline. The latest statistics indicated that Japan's domestic shipments of white goods fell 0.8 percent by value in 2011 from the previous year to 2.2 trillion yen"

17th of February 2012, China Daily Cn Globalization and Fierce World Competition Top Competitors
Guangdong Elecpro Electric Appliance Holding Co. Ltd., Elec-Tech Internation Co. Ltd., Hisense Kelon Electric Holdings Co. Ltd., Ningbo Fuda Co. Ltd., AB Electrolux, GE Consumer Products, Whirlpool Corp., Electrolux Home Appliances China Co. Ltd.

Mergers and Acquisitions
eg. Renesas Electronics Corp, Fujitsu Ltd and Panasonic Corp merger The Changing Nature and Compositions of the Workforce "Haier's secret to success is to inspire employee's enthusiasm, which serves to inject the corporation with vitality"

Liang Haishan, Haier's Executive VP, citied in China Daily Cn - Greater flexibility of patterns of management
- McGregor's Theory Y - Higher levels of customer service and satisfaction
- The need to improve performance
- Increased demand for quality Rapid Developments in New Technology Value-Chain Analysis Business Operations 6 Business Units:
White goods: refrigerators, air conditioners, washing machines, water heaters & kitchen appliances
Brown goods: colour TVs, mobile phones, computers
Client solution business: central air conditioners, integrated kitchens, interior decoration, medical equipment
Equipment component manufacturing group: research, design and production for home appliances, electronic, telecommunication and automobile manufacturing
Retailing: Haier branded stores, franchise and village-level chain stores
Finance: finance and real estate business Manufacturing Based in Qingdao Hi-tech Park, Haier Industrial Park (HIP) is the headquarters of Haier Group.
Total investment of RMD 2.5 billion
Largst production base and R&D Centre for home appliances in China
High-tech Product
Modern Management
Environmental Friendliness Current Projects Commercial Air-Conditioner Project:
Special Refrigerator Project:
Special Freezer Project:
Integrated Kitchen Project:
Microwave Oven Project:
Comprehensive Technical Improvement for Water Heater Project:
Dishwasher Project:
Color Steel Plate Project:
Robot Project:
Logistics Center: Operations with Japan Haier and Sanyo established a joint venture
Haier products distributd in Japanese market
Haier CEO Zhang Ruimin and Sanyo President Satoshi Iue established Sino-Japanese cooperation
Distribution in Japan through Sanyo’s sales channels at the prices simlair to Japanese leading brands Marketing Operations Zero-distance virtual and practical network combination
Zero inventory with on demand manufacturing and delivery
Social Responsibilities: assisting primary school, producing children’s science cartoon, supporting Beijing Olympics 2008 Marketing Mix Product Place Price Promotion Decent, fashionable, and graceful looking
Convenient and special function
Excellent service
Leading life trend - The price adapts to the public
Everyone needs appliance, but financial situations are different worldwide
- The same level with the global giants
Lower price than competitors will lower Haier’s brand value - Online
Many versions and languages available
- Local retailers
Brick and Mortar
- Retail Giants
The Bay (Canada) TV
Newspaper ad
Public Relations
Trade Show
Sponsorships Strategic Analysis Mission Improve quality of life
Create strong brand awareness
Offering high quality products
Reliability of the Customer Service Products
Geographic Market Target Markets Products Consumers Geographic Market Wine Cellars
Beer Dispenser
Beverage Center
Home Comfort
Range Hoods
Water Dispenser
Air Conditioning Plasma TV
LCD Flat Panel
Flat Screen TV
TV/DVD Combos
DVD Players Appliances Consumer Electronics College Student
Middle or Higher income Young People
Lower income young people
Baby Boomers (40-60)
Older People (60+) Southeast Asia
Japan Recommendations Create a Japanese version of Haier website
Foster an online community Manufacturer supplier partnerships
Inter - firm collaboration Localizing employment
Staffing University Graduates Thank You!
Questions? Brand Awareness HRM Chain of Contacts Examples Goals and Strategy Firm strength
Product Brand

4 Stages Long-term development strategy
Branding stage (1984-1991)
Diversification (1991-1998)
Globalization (1998-2005)
Global Brand Building (2005-) Drivers of Change Timeline Company Profile - 1920s: Qingdao refrigerator factory
- 1980s: Post-cultural revolution effect
dilapidated infrastructure, poor management, lack of quality controls
slow in production to a trickle
- 1984: Revolutionizing Haier
Factory closure due to the debt over CNY ¥1.4 million
Zhang Ruimin appointed the managing director of the factor; foundation of Haier and Qingdao Refrigerator Co.
- 1986: Returned to profitability and sales growth averaged 83%/year Introduction -World's 4th largest white goods manufacturer & China's largest home appliance brand
- 240 subsidiary companies
- Sold in over 100 countries
- 15, 100 different specifications under 96 categories
- 50 000 people employed
- Headquarter : Qingdao, China
- Chairman and CEO : Zhang Ruimin TOKYO, Feb. 15, 2012 "Haier announced their establishment of its Asia headquarters in Japan, as well as research and development centers in Tokyo and Osaka"

PRNewswire-Asia Destination: Japan ApplianceMagazine.com (2010). Japanese Appliance Industry 2010 Review and Outlook Review [Internet]. Available from: http://www.plasticstoday.com/sites/default/files/Japan%20Appliance%200410%20SAMPLE.pdf [Accessed 7 March 2012]

China Daily Cn (2012). Haier sets up Asia HQ in Japan [Internet]. Available from: http://www.chinadaily.com.cn/bizchina/2012-02/17/content_14633760.htm [Accessed 7 March 2012]

ChinaHaier (2012). Four Strategic Development Phases of Haier [Internet]. Available from: http://chinahaier.com/abouthaier/HaierWorldwide/stages.asp [Accessed 6 March 2012]

Datamonitor (2011). Haier Group Company Profile [Internet]. Baidu. Available from: http://wendang.baidu.com/view/91d321651ed9ad51f01df2ec.html?from=related [Accessed 5 March 2012]

Dir. Emgasskicker (2012). Haier Commercial [Internet]. YouTube. Available from: http://www.youtube.com/watch?v=nvz8xsVSPO4 [Accessed 9 March 2012]

Haier (2011). Digital image: Haier Appliances Advertising [Internet]. Available from: http://www.haier.co.nz/about/ad-campaign [Accessed 8 March 2012]

Haier (2012). Haier Global: China [Internet] . Available from: http://www.haier.net/en/about_haier/haier_global/china/ [Accessed 7 March 2012]

Haier Electronic Appliances (2011). Improving the Quality of Life [Internet]. Available from: http://www.haier.com.my/vision-mission [Accessed 6 March 2012]

Interbrand. The Strategy for Chinese Brand. Publication no. 1. Interbrand, Oct. 2005. Web. 10 Mar. 2012. <www.brandchannel.com/images/papers/250_ChinaBrandStrategy.pdf>.

Lu, Y. (2009). Strategic Plan for Haier’s Global Brand Building. Finland: Mikelli University

Pejovic, C. (2010) Japanese Corporate Governance: Behind Legal Norms [Internet]. University of Toronto. Available from: www.law.utoronto.ca/documents/conferences2/IACCL10-Pejovic.pdf [Accessed 8 March 2012]

PR Newswire (2012). Haier Establishes Asian Headquarters in Japan as Part of Its Global Expansion Strategy [Internet]. United Business Media. Available from: http://www.prnewswire.com/news-releases/haier-establishes-asian-headquarters-in-japan-as-part-of-its-global-expansion-strategy-139341888.html [Accessed 7 March 2012]

Salsberg, B. (2012). The New Japanese Consumer [Internet]. McKinsey & Company. Available from: http://www.mckinseyquarterly.com/The_new_Japanese_consumer_2548 [Accessed 7 March 2012]

Typepad (2009). The Company: Haier [Internet]. Available from: http://ivythesis.typepad.com/term_paper_topics/2009/05/the-company-haier.html [Accessed 6 March 2012]

Yasu, M. (2012). Renesas, Fujitsu, Panasonic Rise on Chip-Unit Merger Report: Tokyo Mover [Internet]. Bloomberg. Available form: http://www.bloomberg.com/news/2012-02-08/renesas-fujitsu-panasonic-rise-on-chip-unit-merger-report-tokyo-mover.html [Accessed 8 March 2012]

Yongju, L., Mockler, R.J., & Gartenfeld, M. (2009). Haier Group: The Household Appliances and Consumer Electronics Segments of the Durable Goods Industry. New York: E-Leader Tallinn Citations Mission, Goals, and Strategy
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