Haier Group
Haier Group
Question 1: Resources and Capabilities
Haier Group is a leading provider of home appliances and consumer electronic products. Haier group is determined to adhere to quality in terms of the consumer product it avails to it consumers. Haier also has a reliable workforce. Since 1984, the number of employees has risen from 800 to 70000 workers. The large workforce ensures that operations across the different branches across the world run smoothly without interruption. Haier also has the capability to broaden and venture into new markets.
The electronic company has grown from a Chinese electronic manufacturing company, serving the Chinese market to a multinational company. Currently, the company boasts of more than 30 factories that manufacture and assemble its products. The company also has a reliable market. This is evident in its categorization as the best known global company. All across the world, consumers are either utilizing Haier appliances or have seen them in the markets. This is a distinctive capability that has made the Haier brand stand out amid stiff competition (Attached PDF).
Distinctive capabilities refer to a company’s critical resources. These resources play a vital role in giving the company a competitive advantage. Haier Group resources and capabilities are distinctive in that they have formed the basis of continues operation and success in the manufacturing company. The emphasis on quality has for instance ensured that Haier group products and appliance have managed to compete against other leading electronic appliance manufacturers such as LG. Another distinctive capability that Haier enjoys is continuous innovation. The aspect of continuous innovation is instilled in the corporate culture of the company. With continued innovation, the company has managed to roll out new product, which has continued to draw more customers (Yidan, 2009).
Question 2: Strengths and Weaknesses
One of the strengths of Haier group is brand popularity and prestige. Haier Group enjoys prestige in china as majority of the young consumers categorize it as the third most popular brand. Brand popularity enables Haier to sell its product with ease. Consumers seek electronic consumer product with the Haier logo as they believe in the quality of the product. Brand loyalty leads to product loyalty. Consumers are tied to the range of consumer electronic product. This has enabled the company to make sales and profits. At the end of the financial year 2011, for instance Haier group realized profits of over $20billion. The second strength that the company has is, diversity of products.
Haier group manufactures leading appliances such as refrigerator, washing machines and drying cabinets. The company also has smaller appliances such as food processors, toasters, and blenders (Haier, Inc. 2012). Other than the home appliances the company has also specialized in the manufacture of commercial heating and cooling systems. The wide variety of products guarantees that the company attracts a large pool of consumers. It also gives consumers a wider pool of electronic products to select from. This ensures that the company retains its consumers hence continued sales. The expanded manufacturing facilities, as well as 18 R&D centers, also serves as strengths to the company as it spreads to other regions thus increased sales and subsequent profits (Attached PDF).
One outstanding weakness in Haier Group is in the pricing of its commodities. The introduction of the eco-friendly appliances was a boost to a market that was trying to manufacture eco friendly products. Unfortunately, the eco friendly appliances manufactured by Haier Group are cost more than twice the normal range of appliances. The high cost of the appliances means that few customers will chose to purchase the product. The eco friendly appliances have also turned out to be costly for Haier as it costs 10 times more than the standard appliances.
Question 3: Internal Analysis
Conducting a SWOT analysis is the best approach that CEO Zhang Ruimin would utilize to conduct an internal analysis of the Haier Group. A SWOT analysis will enable the CEO establish the organization’s strengths and weaknesses. The company will thus put extra effort on the strengths of the company ensuring that they do not run into weaknesses. Determination of the weaknesses will also ensure that the company is aware of them and thus strive to overcome them. A SWOT analysis also ascertains the organization is informed of any existing opportunities it has as well as the threats. The ability to learn of any underlying opportunities ensures that the organization properly plans on how to tap into the opportunities. Being knowledgeable of the threats, on the other hand, ensures that the company is prepared to tackle or avert them (Yidan, 2009).
A SWOT analysis ensures that the company competes effectively in the market as it is familiar with its internal and external climate. A SWOT analysis enables the company to determine its position in the marketplace. The management becomes aware of how best to manage the organization in light with the findings of the analysis by determining these factors. A SWOT analysis also enables the organization to determine the effective strategies it can rely on so as to grow. Zhang can rely on SWOT to familiarize with the internal as well as external factors that may interfere with the effective running of the company.
Question 4: Zhang’s Goals
Zhang Ruimin strives to focus on the competitive advantages of Haier so as to attain the strategic goals of worldwide leadership and strong global competitor. Attaining a worldwide leadership means that the company has to emphasis on quality (Haier, Inc. 2012). It is the quality of a commodity that keeps the consumers loyal. Zhang is a strategic leader with a vision for Haier group. Zhang strives to lead the company to become a global brand. When Zhang took over the company, it was in debt, had poor infrastructure and lacked quality control for the products it rolled into the market. Soon after taking over as CEO, Zhang embarked on a mission to improve the quality of the appliances that the company was manufacturing.
It is evident that Zhang understood that for the company to become brand leader it had to begin manufacturing product of high quality. High quality products can compete with rival products in the markets. Attaining world leadership also meant that the company had to diversify its products. When Zhang took over, the company only dealt with refrigerator. Over time the company has diversified its products and manufactures, oven, dish washers, mobile phones, computers and many more (Ruimin, 2007). Diversification of product guaranteed that the company enjoyed a wide consumer base hence more recognition. The company’s ability to expand to other markets will also ensure that the company also attains it worldwide leadership.
In conclusion, the case on Haier group is an indication of how a company can rise from poor infrastructures and management to become one of the most recognized brands. A company requires the leadership and vision on individuals such as Zhang to steer a company back to the right direction. Emphasis on quality and diversification of product is among the strategies that Haier relied on so as to flourish and become one of the most recognized companies worldwide. It is vital that leaders have a vision and direction for their companies so as to see positive results.
References
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