Page 157 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes

Case Study Haier: A Global Brand

aier is the world’s 4th largest white goods manufacturer and one of China’s Top
100 electronics and IT companies. Haier has 240 subsidiary companies and 30
Hdesign centers, plants and trade companies and more than 50,000 employees
throughout the world. Haier specializes in technology research, manufacture, trading and
financial services. Haier’s 2005 global revenue was RMB103.9 billion (USD12.8 billion).
Guided by business philosophy of CEO Zhang Ruimin, Haier has experienced success in
the three historic periods—Brand Building, Diversification and Globalization. At the 21st
anniversary of founding of the Haier Group December 26, 2005, Haier announced its 4th
strategic development stage of Global Brand Building. In 1993, Haier brand was officially
recognized as a famous brand and in 2005 valued at RMB70.2 billion. Since 2002, Haier has
consecutively been ranked first in the row of China’s most valuable brands for manufacture
of 15 products, including refrigerators, air-conditioners, washing machines, televisions,
water heaters, personal computers, mobile phones and kitchen integrations. Haier was
ranked first of China’s Top 10 Global Brands by China State Bureau of Quality and Technical
Supervision (CSBTS) for refrigerators and washing machines. On August 30, 2005, Haier
was ranked 1st of China’s Top 10 Global Brands by the Financial Times.
Haier has been widely recognized as a leader of 9 products in terms of domestic market
shares and the 3rd player of 3 products in the world market and world-class company in
the fields of home integration, network appliances, digital and large-scale integrated
circuits and new materials. Haier has long attached significance to innovation in satisfying
the demands of worldwide consumers and realizing win-win performance between Haier
and clients. Haier has currently obtained 6,189 patented technology certificates (819 for
inventions) and 589 software intellectual property rights. Haier has hosted and taken part
in modification of about 100 China’s technological standards. Haier invented technology,
incorporated in the Safe Care water heaters and dual-drive washing machines, has been
proposed to the IEC Criteria.
Haier’s “OEC”, “Market-chain” and “Individual-goal combination” management
performances have been recognized worldwide. Haier’s experiences have also been
introduced into case studies of business mergers, and to financial management and
corporate cultures of many foreign educational institutes, including Harvard University,
University of Southern California, Lausanne Management College, the European Business
College and Kobe University. Haier’s “Market-chain” management practice has also been
recommended to the EU for Case Studies, and its “Individual-goal combination”
management concept has been recognized by worldwide management researchers as a
feasible solution of commercial over stocks and accounts overdue.
Facing fierce global market competition, Haier has launched the global brand building
strategy and updated the spirit, “Create resources, worldwide prestige” and work style
“Individual-goal combination, swift action and success”, with an aim to gain global
recognition and sustainable development.
Haier is an example of how an Asian company can build a brand and take it beyond its
national market. Haier brand which is built on quality and a commitment to offer
innovative products at a competitive price, exports to over 150 countries around the
world, has 13 factories spreading from Philippines to Iran to the US and recently became
the no. 1 refrigerator maker in the world, overtaking Whirlpool.
Contd...

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