Question

please we need answer for quetion NO 2

Please send the written answer on the computer and not by hand

HAIER's foray into International Markets: In the late 1990s, the Haier group (Haier) was the leader in the Chinese consumer appliances market (with a 39.7%, 50% and 37.1% market share in refrigerators, air-conditioners and washing machines respectively in December 1998). But deflation in the Chinese economy slowed sales. But deflation in the Chinese economy slowed sales growth from 50% in 1998 to around 30% in 1999. Haier decided to look for new markets. Since the US had a large demand for consumer appliances, Haier entered the US market in 1999. Analysts were doubtful about Haier's acceptability to American consumers, as there was a general perception in the US that Chinese goods were of low quality. Haier, however, was confident that with its product differentiation strategy it would be able to create a positive image for its products among the American public. In the early 2000s, the consumer appliances market in the US started hotting up as Haier entered the market. By 2009, Haier products were sold in 9 of the 10 top retail chains in the US. With Wal-Mart agreeing to stock Haier products, many analysts believed that Haier would be able to shake up the US consumer appliances market. In 2009, Haier had a 6% market share in the US refrigerator market; it stated that it was aiming for a 15% market share by 2015 The history of Haier dates back to 1984 when Ruimin Zhang (Zhang), a bureaucrat with the local government was asked to take charge of Qingdao General Refrigerator Factory, a state-owned enterprise that is manufacturing refrigerators for sale in China. When Zhang took over the management, the company was on the brink of bankruptcy, with no funds to pay the salaries of its employees or to invest in new product development. When Zhang took charge of the company, he realized that the company did not look after the quality of its products; nor did it bother about customer satisfaction. In 1985, Zhang started importing technology from a German firm and began manufacturing technically sophisticated refrigerators. Zhang emphasized the elements of customer satisfaction and quality control in the company. In 1985, when a customer complained about the poor performance of his refrigerator, Zhang conducted a quality check and found that out of 400 refrigerators inspected, 76 were defective He had all the defective refrigerators destroyed with a sledge-hammer. According to Zhang, this made the workers realize that quality is of only two types acceptable and unacceptable. In 1989 the company changed its name to Qindao Refrigerator Co. Ltd., and it was restructured with funds raised from banks and government agencies. In 1991, the company once again changed its name to Qindao Haier Group Co. and in the same year it merged with Oingdao Air-conditioner Plant and Qingdao Freezer General Plant. In 1992, the company set up Qingdao Freezing Equipment Co. In the same year Factory, which manufactured refrigerator condensers. , it merged with another previously state-owned enterprise Qingdao Condenser same year it became the first company in China to get ISO 9001 certification, and the name was changed to the Haier Group. In 1993, Haier went in for an IPO of RMB 50 million and got listed on the Shanghai Stock Exchange (SSE). During the mid-1990s, Haier began to grow through mergers and acquisitions. In 1995, it merged with Red Star Electric Appliance Company (and five o manufactured washing machines. It also acquired Wuhan Elec-appliance Co., which manufactured freezers and air conditioners. Between 1995 and 1997, Haier acquired seven companies and started f its subsidiaries). This company exporting its goods to foreign markets

Answer 1

It's not always too easy for a brand like Haier to Catter with the competition in a brand conscious and quality conscious markets like US and other countries. But what's not easy that does not imply that it's impossible.

As the company has already pointed out a segment which is untouched by the other players i.e Manufacturing of small size refrigerator for the college students. The main problem with the Haier in US is to make the customer believe and satisfy that their product is of good quality.

There are two ways to make them believe is that first is to do publicity and make them aware about the product or other way is to MAKE few customers use the product and use the benefit of MOUTH Publicity

The company has adopted the second way which will help in both the ways- help to publicize the product with simultaneous increase in revenue. It will help the company to expand the production line and also to open service centres for after sales services to the customers. The thing which should be kept in mind is to sell products of good quality so that the stigma of being Chinese product of low quality can be washed away from the customers mind.

If the above things are kept in mind the company have full chance to fight the competition and grow in the US market.