A Report Of HAIER Essay Example

world and 1st among domestic companies. Innovation In term of product innovation, Hairier Group has applied for 9738 patents and taken in the setting of 23 international standards of its independent intellectual property.

As so-called "Innovation Driven" in China, there is hardly a single competitor to Hairier in domestic appliance industry. Diversification From only refrigerators making, diversifying to washing machines, air intentioned and many other electrical appliances on its product line, Hairier Group has successfully implemented product diversification as a multiply electrical appliance business venture. As a result of this, it has rapidly expended the business scope creating various business prospects in the future operation.

Globalization Holding independent intellectual property with plentiful patents, Hairier has successfully multinationals into the international market selling its own unique designed products in over 1 60 countries around the world. Undoubtedly, so far Hairier Group has become a transnational magnate in the oral stage.

Internal Analysis - Weaknesses Inadequate Competitiveness In High-end Market It should be noticed that, although Hairier plays a dominant role in domestic market, it is relatively short of core competence to compete in multinational rivals, particularly in high-end market.

Comparing to the tops of multinational appliance corporate such as Whirlpool and General Electrics, it may appear that Hairier lags behind in financial resources, R&D and inner management. Ineffective Marketing & Advertising Another falling is that Hairier might ignore the essential of an efficient global racketing and advertising promotion. Contain joyously altering the selling point promoted and a lack of distinctive and attractive advertising would lead to a weak image-building to the consumers around the world.

Unsuccessful External Information Construction Moreover, Hairier nearly fails to gather sufficient information

for marketing and advertising in the world stage.

They find that difficult to exchange effectively the necessary information and data with its suppliers and distributors leaving relatively high-priced purchase and distribution costs.

External Analysis - Opportunities Potential Market - Rural China Due to the fast GAP growth in China year by year and the favorable government policies taken, the living standard of people from rural China has enhanced as well.

Cinder this considerable circumstance, a incremental number of rural people are seeking for progressive and various home appliances, which implies a substantial demands of home appliances for Hairier. Development Of "Green" Products A Echo-friendly and energy-efficient conception appliances can also exploit a great potential market for Hairier Group.

The Status quo is that a dramatic increase in carbon dioxide output because of a mushrooming growth in China's household appliances employed, has seriously polluted the environment. China, now being the world's largest energy consumer'(Reported by EIA), it is such a reputable and profitable opportunities for Hairier to expand their products to a "green" product standard. In addition to this, along the international advocating by the Governments and many none-profitable organizations - Environmental protection is crucial point up to this age, thus Hairier would receive a sufficient subsidy and favorable policies from the government when it tends to introduce some innovative echo-friendly household appliances. Favorable Economic Trend

What is more, under the economic globalization trend, there is a increasing number of interdependent businesses around the world. Many foreign appliance firms would prefer to enter the emerging markets such as China, and it is also possible for the companies from emerging market to step into other markets, seeking for business cooperation

(lower cost, efficient management strategy and better technology differed from their purposes).

Hence, it provides Hairier with many opportunities for conducting mutual benefit activities with its business partners, such as joint-R, information sharing, market strategy arranging. . External Analysis - Threats Price War In the incompletely rival market, such as the emerging market in China, after developed for a certain period, there are some products(electric appliances) cannot escape from the baptism of price war. With numerous new entrants into the home appliance market leading to the excessive supply over demand, many firms lower their price thereby sales turnover, Harriers leading position is further threatened in this market.

For example, "during that Chinese national holiday (1 SST to 7th October, 2010) Come and Sun inning Appliance launched large-scale sales promotions such as giving out rebate upon and premiums and providing limited special offer: Y 50 per Chain, 201 1) Growing Competitions Facing an Increasingly wide range of fierce competition in both domestic(Greer and Media) and international market(Electronic and Whirlpool), it is necessary for Hairier to make more efforts in terms of innovation, organization transforming and efficient management to enhance its core competitiveness. . 0 Hairier: Value Chain Analysis Figure 2: value chain highlights - China(source: FM of LOC) Analysis of manufacturing firms' competences has conventionally concentrated on production capabilities. Recently specking, "many studies eave extended their analyses to the supply networks within which production sits - capturing the complex interrelationships, information and material flows between the various players in the supply chain, both upstream suppliers and downstream distribution activities"(Gait and Youngling).

In this Hairier case, the value chain conception, from a overall system perspective as an analysis

framework(see figure 2), is applied to carry out the primary drivers and tendencies within each section(R&D, Design, Supply Management, Production, Distribution and After Sales Service, respectively) and equivalently essentially the pivotal relevance between the value chain stages.

And Design As "Innovation Driven" in China, Harrier's competitive advantages lies in product design and new-product R&D, absorbing advanced technologies and distinguishing unexplored overseas market.

Under the circumstance of insufficient technologies being required in terms of and Design of household appliances in China, the frustration of Harrier's capacity gap in this aspect has been however redressed by the acquisition of foreign technologies. In commonsense of China's manufacturing firms, it is acknowledged to be the conservative way to acquire the technology transfer room The E and North America.

In addition, up to now, Harrier's R&D departments are spread in many other countries, such as America, Europe, Australia and so on, with strong research teams studying in electronics, management, advanced materials and fields Of ANNA-technologies.

Supply Management & Production Harrier has powerful manufacturing internationalization philosophy(see the time lines): In 1 996, Hairier Group initiated manufacturing internationalization, its first overseas joint venture factory was established in Indonesia - low cost of labors and raw materials.

From 1 996 to 1999, several wholly-owned factories were launched in Southeast Asia(Malaysia, Philippines, etc. ) and the middle East(Jordan) immediate overseas manufacturing extension after a 'pleasant flavor' in the first place.

In 2000, Hairier Group launched its first manufacturing complex in South Carolina, LISA, with annual production capacity of one-shift operation of 200,000 units assessed into yield. In 2001 , Hairier acquired an Italian factory with similar productivity to its US complex. 014) (Statistic resources above cited

from Hairier Global, Favorable manufacturing management refers to a significant cost saving of its monuments supplied and a wide range of supply&production network. Such strong component manufacturing and extensive modern production capabilities drive Harrier's value chain to an optimization: product R&D, brand promotion, production of wide range of commodities, and the progress of a global distribution network.

There is a example for Hairier supply-chain management: the "two walls" supply-chain strategy(see figure 3) has improved Harrier's product innovations and respected its consumer value.

There are two channels through two walls as shown in the figure - the interaction between Hairier Group and its Global suppliers for joint products design activities and the shipping channels from Hairier manufacturing to its multiple retail outlets(overseas stores, home stores, appliance stores, supermarkets and Hairier franchisees respectively).

Figure 3: Harrier's supply-chain(Source: Hairier Global)

Distribution & After Sales Services A effective logistics strategy has been developed for distribution and after sales services by Hairier Group in both domestic market and international market: numerous service, repair and training centers was set up and surrounded with its retail outlets connecting to its dense shipping channel, hereby enhancing distribution and connections with its end consumers.

This strategy is well-developed in the domestic market(China, see figure 4) but might be less influenced in the overseas market(Lisa, The ELI, etc.) In addition, Hairier utilizes its logistic network to offer 3rd party logistics services to its cooperative companies or other middle and small-sized firms which may be incapable to build their own logistic network. Figure 4: Harrier's finished products distribution(Source: Hairier Global) In conclusion, this paper has focused on critically analyzing Heavies STOW and hectically identifying its the value

chain activities.

Internally, Haines strengths in its world-wide brand-name, persistently advanced innovation, product diversification and manufacturing internationalization, while its deficiencies In high-end product positioning, adverting and information gathering in the international stage. Externally, there are many opportunities existing for Hairier to capture, including potential market(Rural China) exploring, Echo-friendly products developing and international cooperative activities, whereas several threats also surrounds by - price war and increasingly growing competitions in emerging market.