And leadership equates to authoritarian dictatorship. End users, other companies and even competitors are brought into the product development process. While Haier has no formal presence in these countries, its products have already crept over their borders from neighbouring Thailand, and Mr Ito is making contact with officials with the aim of building relationships for the long term.
And former Haier staff can get company backing, using the Haier platform, while working for themselves. If you want help with building a resilient organisation staffed by resilient people, get in touch!
Laos, Cambodia and Myanmar are emerging priorities for Haier. So … how has Zhang achieved all this? A similar approach is taken with the Philippines and Malaysia, but not Thailand, where Haier is relatively well established and uses its own brand almost exclusively. With that process now nearly complete, it is embarking on a major sales push, aiming to double its ASEAN business in the next five years, according to Yoshiaki Ito, chief executive of Haier Asia.
Zhang sees this as a natural evolution for all major companies, particularly those focused on business innovation in the Internet age. Zhang Ruimin has built a company without borders, a company without internal or external barriers, where change is now normal. However, outgoing staff would be welcome back if they had a credible business plan.
Many of the products Haier sells in Japan are imported from its South-east Asian factories. Regional integration is expected to improve cross-border transport routes but domestic infrastructure needs are also high.
Haier was close to bankruptcy. Thailand, Indonesia in focus Mr Ito plans to concentrate sales efforts on markets with significant growth potential. In the CEO and chairman warned his staff that 10, of its 70, strong workforce would lose their jobs.
This is partially a result of inheriting the Sanyo brand, which in Vietnam occupies a leading position and is perceived as relatively high-end and aspirational. Zhang himself puts it this way: The company ultimately hopes to become a model of Asian economic integration. We also have a factory there.
Employees, including senior executives, are expected to be part of product development teams, and pitch ideas to a committee which has the power to allocate start-up capital and resources.
Where there used to be complete secrecy pending patents, now there is a greater value placed on collaboration to mutual benefit. The company has already started to hedge by using multiple currencies and currency futures. This sometimes involves Haier stretching beyond its comfort zone.
Those inside the company are also free to leave at any time, and still use the Haier platform for their work, though they would no longer actually work for the company.
Haier continues to use the Sanyo brand in Vietnam, a strategy that has been reinforced by the political tensions between Vietnam and China, which culminated in attacks on Chinese factories in Vietnam last year.
Fortune magazine ranks Zhang 22nd in its global list of people for energising their followers and making the world better. It recently inked a memorandum of understanding with the Ministry of Science and Technology in Laos to jointly develop everything from educational devices to electronic bikes — despite not making electronic bikes currently.
Emerging priorities for the firm are Laos, Cambodia and Myanmar. At one stage he had to borrow money to pay his staff. Staff still talk about how he handed out sledgehammers so that 76 faulty fridges could be pulped. In Indonesia, however, Haier has found more success with lower-priced, entry-level products, and the company uses an approach that features both Haier and Sanyo names.Haier’s expertise is openly shared: Alibaba spent HK$ billion getting Haier to help build out its logistics network.
Where there used to be complete secrecy pending patents, now there is a greater value placed on collaboration to mutual benefit. CASE STUDY: CHINA’S HAIER: A NON-U.S. MULTINATIONAL QUESTION 1: Explain FOUR challenges faced by Haier in becoming a successful international company.
The first challenge faced by Haier is the government control over their business activity. It is because China is a communist country, where they practice command economy system.
InHaier, China's leading appliance manufacturer, had over $12 billion in worldwide sales and was the third-ranked global appliance brand behind Whirlpool and GE. Describes Haier's rise from a defunct refrigerator factory in China's Qingdao province to an international player with nearly $4.
InHaier, China's leading appliance manufacturer, had over $12 billion in worldwide sales and was the third-ranked global appliance brand behind Whirlpool and GE. Haier’s role in this new world will be as a pathfinder: It’s already the first leading global consumer manufacturing company from China.
Soon, if Zhang is once again correct, it will be the first company from anywhere with its distinctive, innovative form of management. Transcript of Haier case study QingDao Germany Taking a Chinese Company Global ‘three thirds’ goal 1/3 from goods produced and sold in China 1/3 produced in China and sold overseas.Download