The paper "Haier’ s Research and Development Strategies" is a great example of a business case study. Haier is a multinational, Chinese company that is prominent for manufacturing electric products (Habish 36). It was founded in the year 1984, in Qingdao, China, as a small refrigerator company. However, the company’ s strategies have seen it rise from a middle-level firm to a class of high-end companies. It is currently a high-end performer and a business giant in the electronic business, supplying more than 6.8% of the world’ s home appliances (Habish 41). The strategy is the key force behind the success of this company.
This essay carries out an exhaustive strategic analysis of Haier, which not only establishes the strong corners and weaknesses of the firm but also compares it with other firms that enjoy the same status as Haier. Haier’ s Research and Development Strategies Haier’ s success is mainly a consequence of appropriate strategies (Hoolladay and Coombs 43). For any company to set up strong strategies, it must, first of all, carry out comprehensive research, before deciding on which strategies to put down. Haier is not an exception, the company in developing a reliable research strategy, has established a research team.
This is responsible for carrying exploring different aspects of the company and advising the company appropriately. The firm has a research institute, which is packed with well-experienced scientists and researchers. This is a crucial step towards ensuring quality (Hoolladay and Coombs 102). The principal research methodology is departmental research, which allows the team to carry out independent researches for each department and write a separate report for the findings from each department’ s research. Research ranges from documentaries, previous reports and findings of other companies and professionals, to a field study research to analyze different markets.
At the initial stage, however, the company’ s team of researchers looks for theoretical findings, which can help them to gain an understanding of the research topic. Theoretical findings are also significant, as guidance to the main research project. With theoretical knowledge, a research proposal can be drawn (Hoolladay and Coombs 113). While conducting the real research, the company uses a diversity of human resource from different fields, races and experiences.
This helps to generate an excellent report, which incorporates the different set of ideas and findings of each of these groups, hence a platform for making informed decisions. Haier’ s finest development strategy involves building a strong brand identity as well as penetrating new markets. They have a vision of being the world’ s star player. The company is consumer sensitive and ensures that it carries out extensive research of potential markets before trying to penetrate them. It goes does deep to understand the cultures and needs of all its target customers. This means that when it penetrates the markets, it sets in to fill any business gaps that existed.
It also provides its customers with services that add value to what they initially received from other existing companies. Grabbing consumer loyalty is pivotal in creating a successful brand name (Hoolladay and Coombs 117). While entering new markets, the company usually seeks a business partnership with indigenous companies or other firms that have a satisfactory experience of their new target markets. In most cases, the Haier merges with such companies, and uses this opportunity to study their new markets, before making a decision to seek the full ownership of their partnerships.
These are well-calculated strategies; they help the company to save funds, which would have been used to market themselves while entering the new markets. The strategies also help them to familiarize themselves with the new business environment before making key decisions. This stimulates them to hit their development goals.
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Haier Strategic Growth Image. Retrieved from http://image.haier.com/en/about_haier/haier_strategy/201108/W02011102742786340842 6.jpg
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