Haier market was competing in a price

Haier(Haier Group Corporation) originally Chinese brand was focused on tenderingtheir local market. Haier was previously known as Qingdao Refrigerator Company(Haier Group Corporation, n.d). Their local market was competing in a price warover refrigerators, for this reason low costs means low quality products. Haierwas in debt and producing very few refrigerators a month in the 1980s (Fischer,B., Lago, U.

, & Liu, F., 2015). Haier then hired Zhang Ruimin to bemanaging director; Zhang went to their warehouse and destroyed all faulty refrigeratorson the street outside to send a message that subpar quality will not betolerated (Fischer, B., Lago, U., & Liu, F., 2015). The message from thisday forward was to ensure the quality of the product they were selling.

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In the1990s Haier received a complaint that their washing machine was not performing tothe standards Haier is held to, upon inspection it was because sweet potatoeswere being washed in the machine (Fischer, B., Lago, U., & Liu, F.

, 2015). Thus,Haier adapted and released a vegetable washing machine for this new market.Haierstarted to adapt products for small areas with very little competition, justlike the vegetable washing machine. Haier launched a mini fridge afterassessing the needs of college students and their small (dorm) living space.While in other areas like Pakistan led to Haier producing very large washingmachines to satisfy the washing of normal Pakistan clothing/heavier clothingloads (Haier Group Corporation, n.

d).Haierwould asses an area, see the needs and innovate a product to solve thoseissues. Haier was making what is referred to niche products.Aculture challenge that Haier faced was initially was being able compete withlocal companies selling products for lower prices or with more reputation.

Tocompete better Haier opened production centres all over the world to not onlydistribute faster but expand as a global enterprise.


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