Main Features of Haier's Internationalization Strategy

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This article has been framed to analyze the main features of Haier’s international strategy in which Haier is a Chinese company which deals with electronic industry. Haier's was established in the year of 1984 and owned by the government of china under the name Qingdao Refrigerator Co. Ltd. this company also manufactured the refrigerators and this manufacturing the has been started in Germany and from last 26 years the business has grown rapidly by fostering the strategies related to new product development and global trade expansion now this business deals with the international market and it holds first place in various segments like compact refrigerators in united states and washing in Iran and air conditioners in the Cyprus.

The market share of this company is 5.3 and this company is ranked second in global production of refrigerators all over the world. This company is providing competition to number of brands like whirlpool, Samsung and many more but due to it internationalization strategy this commonly is sustaining in the market and providing tough competition to its competitors. The value provided by the products of this company to its users is unbeatable because number of strategies related to innovation and technology has been integrated or deployment at Haier which foster the quality of services to its users. The number of issues related to quality of products or value- based products has been resolved by this business by deploying a department called as new product development.

The main motive of this department is bringing or aligning the innovation with the product manufacturing so that present or dynamic requirements of its users can be fulfilled easily.  Haier moved to number of countries by making its product more reliable and responsive as compared to the other competitors in the market.  the research and development department of this organization help them to bring innovation in their products and huge investment has been done by this organization in product development field in order to handle the changing requirements of users and it the major or key success factor for compete in this world of technological advancements or changing requirements. The products of Haier are available at a very reasonable rates and the customers of Haier getting high quality of product at a very reasonable price it also helps Haier to compete in international market. The officials of this organization are very familiar with the gap between the two different environments of two different nations and this factor is the root cause behind the rapid growth of this organization along with this the officials or higher authorities of this organization are well known to their responsibilities.   

Instead of having so many pros but this organization is also facing the challenges related to various threats that can occur due to the existence of cultural barriers among the team members working at remote location. The penetration in the different is a very challenging task but the officials of this organization are using he proactive approach for analyzing the issues related to market penetration which help them to penetrate in the organization easily. The different modes of market penetration can be used by this organization such as exporting entry mode and joint ventures entry mode. The global competition has been faced by this company and this company has implemented a number of strategies in order to compete in the international market.

The diversification strategy has been implemented in this organization in order to target the different market.  following are the strategies: Haier’s has internationally competitive brand operators and they also have created the famous brand of China all over the world.  "difficult first then easy issues" is an internationalization strategy implemented by Haier in order to compete in different markets all over the world. “localization strategy in foreign markets” has also been used in this organization in order to retain more number of customers and increase the reach of this company to the market. “Trinity strategy” is also helpful for this company to target the global market and this strategy help Haier’s to gain competitive advantages as compared to its competitors. “strategy of finding chinks” another strategy implemented by the higher authority of Haier to survive in this world of competition.