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Qingdao Haier Limited Case Study


Strategic Problem and Issue Identification

Qingdao Haier Limited is currently one of the leading manufacturers of household appliances. The company has been working hard in order to become a major global competitor. Haier is targeting new international markets in order to establish its global reputation.

One of the firm’s visions is to “become a localized brand in various global markets” (Kerin and Peterson 651). However, Haier has encountered numerous obstacles in an attempt to achieve these objectives. The firm is planning to purchase Maytag Corporation.

Haier believes that overseas acquisitions have the potential to support its business goals. However, a number of issues should be addressed before making this move.

For instance, Haier should understand how it will benefit from this acquisition. The other issue is how the firm can overcome the increasing level of competition in different global markets. Haier’s presence in the European market has been less successful.

Many purchases in the US are “usually intended to replace existing appliances” (Kerin and Peterson 661). This practice makes foreign firms like Haier less profitable. It is also notable that Maytag has been less successful within the past few years. These issues should be addressed before making the final decision.

Analysis and Evaluation

Haier Limited has the potential to achieve most of its goals. Haier uses the concept of specialization in order to produce its products. Some of these products include mobile phones, TVs, washing machines, air conditioners, and refrigerators. It has been marketing its appliances in over 160 nations.

Many foreign manufacturers have also succeeded in the American market. Companies such as Samsung and LG Electronics have “introduced new appliances such as dishwashers and washing machines” (Kerin and Peterson 659).

This situation explains why Haier wants to acquire Maytag Corporation. To begin with, Maytag has some of the widely respected products in the United States. Maytag Corporation also boasts of a powerful brand. Maytag’s presence in different regions can support Haier’s business goals.

Maytag uses different chain stores such as Best Buy, Home Depot, and Sears (Kerin and Peterson 663). The company has also opened many stores in different cities across the nation. Maytag uses these stores to market and advertise its products.

Maytag produces most of its products in the United States. The firm has a small presence in Europe. It has been marketing its products in Australasia. The company has also been performing poorly within the past three years. Recent studies show that many consumers are buying foreign appliances (Kerin and Peterson 662).

This situation explains why Best Buy has stopped marketing Maytag’s products. That being the case, Haier Limited should address these issues before making its final decision.

Recommendations

Haier should acquire Maytag in order to emerge successful. It is notable that companies such as LG and Samsung have succeeded in the United States without any form of acquisition. However, Haier can capitalize on this opportunity in order to achieve its objectives.

The firm will acquire Maytag’s products in order to establish a new competitive strategy. The approach will also ensure Haier acquires more clients (Kerin and Peterson 667). Haier will also acquire new markets in Latin America and Australasia.

This strategy will ensure Haier overcomes most of its challenges in the American market. Haier will be able to compete with firms such as Electrolux, Whirlpool, Samsung, and LG Electronics.

Haier should also use powerful strategies in order to achieve its business potentials (Kerin and Peterson 667). In conclusion, Haier should adopt Maytag’s entrepreneurial strategy in order to become a leading global player.

Works Cited

Kerin, Roger, and Robert Peterson. Strategic Marketing Problems: Cases and Comments. Upper-Saddle River, NJ: Prentice Hall, 2009. Print.

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IvyPanda. (2019, December 23). Qingdao Haier Limited. Retrieved from https://ivypanda.com/essays/qingdao-haier-limited/

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"Qingdao Haier Limited." IvyPanda, 23 Dec. 2019, ivypanda.com/essays/qingdao-haier-limited/.

1. IvyPanda. "Qingdao Haier Limited." December 23, 2019. https://ivypanda.com/essays/qingdao-haier-limited/.


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IvyPanda. "Qingdao Haier Limited." December 23, 2019. https://ivypanda.com/essays/qingdao-haier-limited/.

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IvyPanda. 2019. "Qingdao Haier Limited." December 23, 2019. https://ivypanda.com/essays/qingdao-haier-limited/.

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IvyPanda. (2019) 'Qingdao Haier Limited'. 23 December.

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