Paper Example on Haier's Early Expansion to International Markets: Strategic Positioning & Difficult Markets

Introduction

Haier's competitive position did help the company expand to international markets relatively early. It was a combination of proper management and opportunities that created the right environment for expansion. The strategic position of the company also did help in the relatively early entry to international markets. Several factors helped the company grow to global markets, as discussed below.

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Strategic Positioning

Difficult Markets first

Haier ventured into the international market by entering into the problematic markers first. Segmenting the markets required less logistical planning and guaranteed quality. Difficult markets acted as a guide to other less complicated markets, for example, Europe(Khanna et al., 2011, Pp. 7).

Having the Right Technology

Haier invested heavily in technology. It helped put the company at a strategic position internationally to be able to deliver quality products. Most of the techniques were sourced from Europe (Khanna et al., 2011, Pp.3). For example, Haier got into an agreement with the German refrigerator maker creating international trust and connections.

Product Differentiation

Haier used product differentiation at the international markets to increase sales. Customers have different preferences, and it was important for Haier to meet all the needs internationally (Khanna et al., 2011, Pp. 5). Cultural differences increased the demand for product differentiation, which Haier was able to do fast.

Intra-firm Value Chain and Strengths and Weaknesses

Intra-firm value chain helped Haier identify the competitive advantages at the planning level before venturing into international markets. The competitive advantage became the strength of the company.

Intra-firm Value chain helped Haier promote coordination and joint optimization. The aspects of coordination and optimization are essential in international markets. It gave Haier strength in the market.

Having an inter-firm value chain helps the company realize the weaknesses earlier on time. Measures are put in place to cushion the company from competitive weakness at international markets, thus promoting growth internationally (Khanna et al., 2011, Pp. 6).

Global Vs. Adaptive Products

Haier has invested in high-quality products. These are products that have gained global recognition and promoted Haier's reputation for quality products. Quality products are adaptive to the market and the needs of global clients.

Knowledge Transfer

Information is essential in helping a business grow. How the Haier uses the information it has or gets information from outside and uses it well determines the competitiveness. Haier gathers and acts on information differently.

Knowledge Transfer-Barriers to success

Haier helps create quality service for customers by promoting customer value services. The provision of value-added services, which is communicated, endears Haier to customers. Haier focuses more on the explicit knowledge transfer for the promotion of business. Cultural differences sometimes create a barrier in knowledge transfer, but Haier has been able to tilt the cultural differences in knowledge transfer to its advantage (Khanna et al., 2011, Pp. 7).

Knowledge Transfer-Guidelines for Success

Home Market Advantage information helps guide the company to other markets. Using the information gathered at the home market helps create a guideline s to success for the company (Khanna et al., 2011, Pp. 3). The right information gives the company a competitive advantage.

Motivation on the transfer of explicit knowledge is a guideline to success. Haier has been able to have a more exceptional absorptive ability for explicit experience helping the company maneuver the international markets and its associated dynamics (Khanna et al., 2011, Pp. 9).

Conclusion

Haier remains to be a competitive global brand. The company has had a vast experience of adapting to new markets, thus giving it an edge when it comes to global markets. Haier has also managed the local markets well, making the company a more reliable brand both locally and internationally.

Bibliography

Khanna, T., Palepu, K., and Andrews, P., 2011. Haier: Taking a Chinese company global in 2011. Harvard Business School Strategy Unit Case (712-408).