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Haier Strategy Analysis - Research Paper Example
Author : adriennesatterf
Pages 3 (753 words)
Haier Strategy Analysis Name Institution Date Haier Strategy Analysis Haier, a Chinese company is a major contributor in the electronics business. The company has been offering the market with superior products through its 27 years in operation. The company has grown from a regional and local firm to an international organization by establishing loyalty and branches in different geographic locations…
The company approaches the corporate-level strategy by establishing subsidiaries in different locations. Presently, the company has subsidiaries in 13 countries with eight being design centers and ten information centers. Analysis of Haier’s strategies using the BCG matrix indicates that, the developed regions falls under “stars” as seen in their high proceeds and market share. An example of a developed country that fits such a description is the US whose rewards would be a “cash cow” if the market share were kept. Cows are the developing countries, for example, Kenya that has a high market share based on the technologically perceptive persons; however, the income is low meaning that Haier has to reduce investments. Dogs are the emerging economies where the need for electrical items is still low especially in regions where distribution is hindered by distance and distribution costs. Haier is yet to access such markets as seen in war torn regions such as Sudan and Afghanistan. Question marks in the strategy are regions with high growth and reduced market share. Indeed, Haier accesses such markets through its extended subsidiaries as evident in Philippines; however, such markets are unviable meaning that it would be appropriate to sell the commodities and close shop. ...