The paper "Business Model of Haier in the US Market" is a perfect example of a marketing case study. Haier is the world’ s fourth-largest white good manufacturer and was founded in the year 1984 under the chairmanship of Mr Zhang Ruimin. This assignment has been prepared with an objective to develop a business plan for Haier in the USA. The report highlights the objectives which act as reasons to penetrate into the US market. A SWOT analysis has been performed to evaluate the strengths and opportunities along with threats and weaknesses.
The report then moves to show the different feasible strategies which Haier can look to adopt to gain higher growth in the US market. The report also highlights how the company shall perform by using different strategies along with a look towards the supply chain. Further, the report reflects human resource strategy of Haier and entry mode selection to penetrate into the US market along with reasons for selecting the same. The report also provides an understanding of the utilization of different marketing mix variables and a budget estimate to ensure the financial viability of the business model.
Finally, the report also highlights the challenges Haier need to adhere to ensure market growth and higher profits along with a vision which needs to be considered once the product has been launched in the United States. Brief about Haier Haier is the world’ s four largest manufacturers of white goods and was founded in the year 1984 with its headquarters located in Qingdao, China. The company manufactures home appliances in over 15100 varieties with different specifications which fall under 96 different categories.
Haier is reported to have over 240 subsidiary companies, over 110 design centre and over 50000 employees with market coverage in over 100 countries across the globe. Besides home appliances, Haier also focuses on technology research, manufacturing, trade and other financial services. Haier looks to deal in white household appliances such as refrigerators, air conditioners, washing machines, televisions, water heaters, personal computers, mobile phones, and kitchen appliances. The advancement in technology and the ability to provide quality products has helped Haier to improve its brand image and will act as a mechanism through which better business opportunities can be established elsewhere Choosing US Market Haier aims to choose the US as the potential market because of the following reasons The United States is more stable and pragmatic with an increasing demand for appliances and products which thereby provides an opportunity to be able to capture a bigger market (Coughlan, Stern & Adl Ansary, 2006) Customers in the USA are more inclined towards branded products which will help Haier to develop a pool of loyal customers based on quality offerings The competition in the USA is less as there are few players from the domestic arena and Haier will have to compete with only the international players which is not the case with other countries Home appliance market of US is anticipated to grow at a higher rate of 1.92% CAGR by 2016 in comparison to Japan which is expected to grow by 1.62% by the end of 2016 and India by 1.56% (Coughlan, Stern & Adl Ansary, 2006). Objective Objectives play an important role in any business plan and so does it do here.
Haier looks to target the USA market with its decided strategy of strategic alliance.
The objectives with regard to penetration of the US market have been discussed as under.
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