Market Entry Essay

grade chain outline line of merchandise imitate restructuration Domestic commercialize 1. compend 2. Factors of success 4. planetary expension outline 1. circumspection system 2. Analysis 3. Factors of success 5. 6. set creation wall Top quality products commensurate and productive management style Group capacity to restructure and timulate separate companies Value chain analysis & sizeable partnership Value range synopsis origin model restructuration Domestic Market external expension scheme Value man palisade Value chemical chain portray headache model restructuration International expension dodgeDomestic Market 1984 1988 Zhang become carriage of Quingdao General Refrigiretor Factory Gold medal for product quality in national competition Value mental hospital 1989 1991 Chinese market type oversupply Diversification through aquisitions (eg, telecommunication, equipment) Debate Raise the price and move around to high quality strategy 1998 Operational restru cturing Value Chain Outline job model restructuration Domestic Market Diversification and internal reorganisation ? 7 product divisions ? G local strategy ? 4 Group-wide Development Divisions International expension strategy Value Creation Debate Value Chain Outline Business model restructuration Domestic Market International expension strategy Value Creation Debate Market piece of ground in 2004 Refrigerator Washing cable car Air conditioner 28% 18% 30% other ? ? ? By 2002, they accounted for 61% of industry profits. From 1989 to 1996, the number of refrigerators producers 100 to 20 3 Chinese manufacturers = 60% of the market ? Kelon is the main competitorValue Chain Outline ? Business model restructuration Domestic Market After the Chinese entry in WTO ? new entrants (Electrolux, Siemens) ? Refrigerator unit sales 31% in 2002 vs 26% in 2001 ? Automatic washing machine 38% in 2002 vs 31% in 2001. ? Before 2000 ? Core profit ? state-owned department stores ? In 2004 ? individu al specialized shops/ private retail International expension strategy Value Creation Debate % Haiers sales Domestic Chain International chain Licensed dealers Independent retail shops Government purchases.Management method Market responsiveness focus on meeting customer demand Good after-sale service offerings that Chinese customers was not accustomed (free replacement, warranty) dispersal network one single company (Haier logistics) serving the entire group, good network Be cautious These points fucking be learnt, copied and imitated by multinationals International expension strategy Value Creation Debate Value Chain Outline ? ? Business model restructuration Domestic Market International expension strategy Value Creation Debate Key factor for international strategy management on market pressure choose difficult market (eg. US, Europe) If we can succeed there we can succeed in easier market ? interpret for hard challenges ? Focus on Human Resources assets ? Implement a local thinking ? Hire Local employees Value Chain Outline Business model restructuration Domestic Market International expension strategy Value Creation ? Since 1997 Willpower of a global expansion strategy (3third) ? Joint ventures ? shaper of Liebherr (Germany) 8 top ranking ? 1999 Willpower of Haier to make a blur reputation overseas. Difference with the domestic rival Kelon ? Take example of the victorious Japanese and Korean model. % of sales in the US an EU trade from China (% of total revenue) 1998 3% 2004 17% 1998 3% 2004 8,3% Overseas make and Sold (% of total revenue) 2002 4,6% 2004 8,3% 70% of Haier overseas revenues come from developed markets Debate Value Chain Outline Business model restructuration Domestic Market.International expension strategy Value Creation Debate Focus on difficult (flat market) and highly competitive markets Penetrate the market with niche products Hire local plenty Make JV on five continents ? Benefit from existing networks. break close at tention to market specifications Make response speed punish customer needs Value Chain Outline Business model restructuration Domestic Market International expension strategy Value Creation Debate Growth leverage Restructuration Differentiation Know How After Sales Management Vision Market responsiveness Distribution Glocal Strategy Value Chain Outline ? ? Business model restructuration Domestic Market International expension strategy How would Haier evolve in order to gain more market share internationally and in their home market?