(Haier Group Corporation) originally Chinese brand was focused on tendering
their local market. Haier was previously known as Qingdao Refrigerator Company
(Haier Group Corporation, n.d). Their local market was competing in a price war
over refrigerators, for this reason low costs means low quality products. Haier
was 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 be
managing director; Zhang went to their warehouse and destroyed all faulty refrigerators
on the street outside to display no tolerance for subpar quality (Fischer, B.,
Lago, U., & Liu, F., 2015). The message from this day forward was to ensure
the quality of the product they were selling. In the 1990s Haier received a complaint
that their washing machine was not performing to the standards Haier is held to,
upon inspection it was because vegetables were 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.
started to adapt products for small areas with very little competition, just
like the vegetable washing machine. Haier launched a mini fridge after
assessing the needs of college students and their small (dorm) living space.
While in other areas like Pakistan led to Haier producing very large washing
machines to satisfy the washing of normal Pakistan clothing/heavier clothing
loads (Haier Group Corporation, n.d).
would asses an area, see the needs and innovate a product to solve those
issues. Haier was making what is referred to niche products.
A culture challenge
that Haier faced was initially was being able compete with local companies
selling products for lower prices or with more reputation. To compete better Haier
opened production centres all over the world to not only distribute faster but
expand as a global enterprise