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International Strategy & Business

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International Strategy & Business

Faculty of Business & Law


ID: 18424212


Competitive Strategy and Innovation

Assignment 02



Assignment word count:

……… 2500 words………

Tutor Name:

Dr. Holger Siemons

Submission Date:

13th September 2018

Table of Contents

I.        Introduction        3

II.        Analysis of Internationalisation Strategy        3

1.        Main features of Internationalisation Strategy        3

a.        Quality management        4

b.        Innovation        4

2.        Comparison between Haier’s strategy and Western enterprises        5

3.        The road to successful of Haier        7

4.        The Management system        9

III.        Conclusion        10

IV.        Bibliography        10

  1. Introduction 

In recent times, as in a volatility, uncertainty, complexity and ambiguity (VUCA) global economic environment, many industries are facing multi-global challenges likes the innovation challenge, the management challenge and the competitive challenge. In particular, The Haier Group (Haier) – the Chinese household electrical appliances corporate, is widely known as one of the most successful companies in the world due to overcoming all the realities and difficulties. Furthermore, Haier successfully entered into global market competition and brought the local brand into one of the top world brands. Take a deep look and analyse the case, it is important to evaluate the Haier’s internationalisation strategy since the early 1990s using its own capabilities and efforts to restructuring the enterprise from a nearly bankrupt factory to being a one of the top successful corporate in the world.

  1. Analysis of Internationalisation Strategy 

The Haier Group is considered as one of the world ‘s largest household appliance corporates which has been success in applied the internationalisation strategy and catching up with the Western competitors over the past two decades. To understand how roughly bankruptcy firms has turned around to being one of the leading makers globally, this paper targets to deeply analyse the internationalisation strategy that played a significant character in Haier’s strategy and process to its outstanding position today.

  1. Main features of Internationalisation Strategy 

In order to acknowledge about the internationalisation strategy of Haier, this paper aims to critically analysing the main features of Haier’s strategy since the early stage. Haier’s strategy  can be classified into four phases  which has continuously supported  each other from 1984 up to now. Quality management and innovation are considered as two main features that linked the four stages together.

  1. Quality management

To begin with, since the late 1980s, the top managers of Haier easily realized under the new era of globalization, the enterprise could no longer compete only on the cost feature of the product and it needed to focus more on the quality aspect. Compared to other Western multinational corporate, Hair has a disadvantage in brand awareness and image for being as a Chinese brand names. As it can be seen, Chinese brand name has a bad perception image in customer mind for being a low value-added product. In addition to that, Haier’s new vision was shifted the enterprise focus from Chinese market to foreign markets. Therefore, in the direction of development into the world leading corporate, Haier aimed to reach the best product quality among the global by passing through all the quality test.

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