Haier (Global Strategy). Business & Marketing. Case Study

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Haier Global Strategy Analysis
Problem Statement
At the beginning of their expansion efforts into overseas markets, Haier achieved considerable success by applying three main strategies, namely; (1) penetrating developed markets such as Europe and the United States (US), which strong global competitors dominated, (2) introducing niche products rather than standards products in developed markets, and (3) using local employees with brand experience to run the business (Palepu, Khanna, and Vargas). However, it faced challenges later on because it could not establish dominance in overseas markets and was facing stiff competition at home. This was problematic because Haier's objective was to have one-third of its revenues generated from exports to overseas markets, one-third generated from domestic sales, and one-third of products manufactured and sold in overseas markets. Haier would need to address how it can fully penetrate developed markets using its regular products rather than niche products while still maintaining a competitive edge in the Chinese market. This question is important to Haier because failure to penetrate overseas markets using its regular products fully would limit its chances of getting a third of its sales from exports. Additionally, failure to maintain its position in the Chinese market would reduce revenues generated from local sales.
Analysis
To better understand how to address the question, Haier would need to understand what factors were limiting its ability to expand beyond the niche products. Factors such as cultural differences between the US and Chinese consumers could explain why Haier's regular products had not gained a strong foothold in the US market. For instance, how did uncertainty avoidance among US cons...