Within the last decade, the Haier Corporation has been strategically invading the US household appliance market. Under the leadership of its CEO, Zhang Ruimin, Haier is now the world’s largest maker of refrigerators, air conditioners, washing machines, and dishwashers, etc. While operating plants in 13 countries and selling to 160 countries, Haier’s sales reached $23.60 billion last year, and is presume to grow another 15% - 19%. US appliances makers Whirlpool and General Electric should be scared. The success of Haier is directly related to its business strategy and its ability to achieve competitive advantage against its competitors. The company has adopted a focused differentiation strategy, identifying niche markets overlooked by large corporations where they can easily attain competitive advantage by creating products with unique features to address the needs of neglected customers. Haier first focused on specific areas such as college dorms, small apartments, and stepped into the market with small refrigerators and foldable shelves. Then it continues to fulfill more needs of customers by introducing washers that wash very small loads of clothes for urban users, wash both clothes and sweet potatoes, rat-resistant refrigerators for farmers, and freezers that can stay frosty for 100 hours without electricity particularly for African customers, as well as home cabinet-size wine coolers that indicates when a vintage in stock is running low, for customers with upscale lifestyles. Haier’s desire to meet every need originated from Zhang’s commitment to service every customer, and proven by the company’s vest investment in technological innovation. Haier encourages lots of experimentation, while reinvests 3% to 5% of revenue into research and development. These are the reasons why Haier is leading the world with products such as wall-size televisions with remote control fitted in headgear that allows viewers to control the TV with brain waves. Focusing only the variety of designs and features of products isn’t enough, Zhang also stresses the importance of achieving and maintaining superior quality to identify itself as a premium brand. His emphasis on quality was demonstrated by the story of him telling workers to hammer down all the defective refrigerators. Since then, he has refined the laser-like quality control method and educated his employees that quality is of the utmost priority. Throughout the years, Zhang Ruimin has consistently ensured that Haier’s products are outstandingly well made, therefore was able to
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