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1、The Strategic PlanningForHaier GroupNAME: Shao Xiayu(20085878339) Zhang Yajie(20085878335)Liang Zhanning(20085878087)Yang Zheng( 20085878040)Laing Han( 20085878018)Zhou Weifeng( 20085878271) CLASS: International TradeMAJOR: Business Strategy TO: Will. Zhang DATE: May 27, 2010 1CONTENTSINTRODUCTION.2

2、SECTION ONE THE DEVELOPMENT OF THE STRATEGY.31.1 THE FIRST STAGE.31.2 THE SECOND STAGE.41.3 THE THIRD STAGE.61.4 THE FOURTH STAGE.7SECTION TWO EXTERNAL ENVIRONMENT ANALYSIS.72.1 THE PESTEL ANALYSIS.72.2 THE INDUSTRIAL ANALYSIS.11SECTION THREE THE INTERNAL ANALYSIS.133.1 INTRODUCTION OF THE PRODUCTS.

3、133.2 THE BOSTON MATRIX.153.3 DEVELOPMENT AND FUTURE.163.4 ORGANIZATION STRUCTURE AND CULTURE.163.5 HAIER GROUPS MARKETING CHANNELS DEVELOPMENT AND THE STATUS QUO.183.6 HAIERS VALUE CHAIN.18SECTION FOUR THE SWOT ANALYSIS.19SECTION FIVE THE CURRENT STRATEGY .21CONCLUSIONS .23REFERENCES .24APPENDICES.

4、25 2Introduction Haier is the leading brand of white goods globally and the most valuable brand in China. With its 29 manufacturing plants, 8 comprehensive R&D centers, 19 overseas trading companies across the world and more than 60,000 global employees, Haier has involved into a giant multinati

5、onal corporation. We use the PESTEL and SWOT to analysis the Haiers internal and external environment, and we discuss the future of the Haier and its development. We files is main from internet and books, its all the second information. This report consistsof five section, the section 1 is introduce

6、d the Haiers used strategies, the section 2 and 3 is analysis the Haiers internal and external. The section 4 is use the SWOT to analysis the Haier, and the last section is introduce the Haiers current strategy. 3Section One The Development of the Strategy1.1 The First Stage Brand Building Phase (19

7、84-1991) The first, we should understand this phase. In the early days of Chinas reform and opening, the market was still relatively controlled; a limited supply of goods was insufficient to meet the enormous demand. Economic conditions in the early 1980s were such that to buy a refrigerator require

8、d first obtaining a refrigerator coupon. Haier observed that the demand was unrelated to product competitiveness, but was rather a byproduct of a closed system which kept companies from tapping an enormous potential market for high quality consumer goods. As a result, Haier established the Brand Bui

9、lding Strategy and the Zero Defect quality standard. In no time, Haier reaped the rewards of these initiatives. In 1988, in only its fourth year of existence, Haier earned the first ever National Gold Medal awarded in Chinas refrigerator industry. By the late l980s, times were changing and the marke

10、t was flooded with refrigerators, forcing many suppliers to cut prices. Despite the glut, Haiers products remained consistently popular and the company was even able to increase prices by 12%.Features: By only focusing on refrigerators, Haier was able to accumulate valuable business and management e

11、xperience. This experience allowed the company to build a management model which could be used with future business units.Achievements: Haier was able to transform itself from a small factory operating at an annual loss of nearly RMB 1,470,000 into the number one refrigerator brand in China.On the b

12、asis of my analysis, I think that to establish good brand is a unique product for the identity of the process. It can not only increase consumer products to memory, makes it easier for them to be relative to other brand products to the product orientation. But, the 4brand personality and shape of co

13、nsumer products like can produce a familiar feeling, and reliability, nurturance buying habits. As the brand can make enterprise in the fierce competition, the market is changing rapidly exclusive coquettish. Investigation shows, the degree of attention brand with its market share is very close. The

14、 successful brands, will attract more attention and buy buy, make the internatilnal market rises. Therefore the strong brand will get customer loyalty, their weight after spending the turnover, at least in certain level can be maintained. And a good brand can make the enterprises product price incre

15、ase, thus obtains the substantial profits. Rolls-Royce cars, such as the brand, it gives the impression is rare, excellent quality, reflecting the users and the noble qualities. So even if its price is too high, with the chase.Good brand enterprise name, not including the product itself, appearance,

16、 packaging design, or for its trademark font, shape, art design and color, also should such substances such as enterprise tenet, including operating principle, behavior criterion, the management philosophy of spirit, etc. Therefore, the outstanding brand should have distinctive and unique personalit

17、y and protruding from the rival products, ideally, own brand can become the generation of this product, such as McDonalds hamburger is synonymous with, business is a PDA.Haier group in the establishment and create its own brand strategy is very attention when using various marketing activities and p

18、ropaganda, fully tapping potential outstanding haiers trademark design, slogans, television and magazine ads, etc. For example, haiers ci image planning, outside a unified image, haier from several letters to two children, so that people will quickly think haier products, and haier acceptance sincer

19、e forever! To improve the haier, visibility, haier brand image/has played a significant role.So, brand building phase is suit for Haier.1.2 The Second StageDiversification Development Phase (1991-1998) 5Since 1992, Haier start to expand their type of products. They start to produce more different ty

20、pe of products. Start to implement Diversification Development Phase. Through mergers, acquisitions, joint venture, cooperation. Haier is not only produce refrigerator products, they start to produce air conditioners, washing machines etc. They enter the white goods industry in a high speed.1997, wi

21、th producing digital TV as a mark. Haier start their production in Black Appliances.1998, Haier try to develop in computer industry which call Beige Appliances in foreign country.In the process of expandtion, Haier using the method of eating “shock” fish for the capital operation. Haier insist of us

22、ing intangible assets to activate tangible assets. That means using the advanced management concept and management method to activate the resources are mergers. Furthermore, useing the concept and method with Haier characteristics ensure the success rate of capital operation and realizing expantion

23、with low cost. It achieved in the shortest possible time to make the largest scale of Haier. And make the compant more powerful. household appliance industry is still the main industry of Haier. It make 40%-70% of the total money of the sale.2001, Haier using hte reputation of the brand created in t

24、he household appliance industry to enter Finance industry and build up a Haiers finance structure. Inculding capturing Qingdao commercial bank, Chang Jiang securities, founded insurance agency, Life insurance comapny and Financial company. This kind of measure build up the foundation of enter the in

25、ternational capital market. It provide a biger stage for the company development.The frigerator become the core competitiveness of Haier. So Haier start their diversification development phase. They according the ability of the company, they did not develop in a hurry, they did it step by step. The

26、core foundation is the management, brand and the sale-service ability. Furthermore, according to the related degree of the new industry to choose which one to enter forst. It is because diversificate business success rate is related to the related degree of the its original industry. More related, h

27、igher successful rate. So Haier according to the related degree to enter the new industry. They enter the new industry 6which is high related first, normal relatd secondly, and then low related lastly. According to the situation, there is three different method to enter new industry. The first metho

28、d is Internal development, this method maly depends on the companys own business resources to enter the new industry. The second method is external merger and acquisition, though merger and acquisition the company to enter the new industry. The third method is Joint venture cooperation, though build

29、 up the Joint venture cooperation relationship with other company to enter the new industry.1.3 The Third StageGlobalization Phase (1998-2005) In the 21st century, globalization provided opportunities for Chinese companies to earn foreign exchange by leveraging lower production costs and functioning

30、 as an original equipment manufacturer (OEM), for multinational corporations (MNCs). But as China developed economically, rising labor costs meant that Chinas time as the worlds factory floor would soon be coming to an end, and many MNCs shifted their production facilities to countries, such as Viet

31、nam, which offered a cheaper source of labor. Those Chinese manufacturers who continued to rely on cut-rate production to attract business soon found themselves abandoned by their international partners.Haiers view was that in the age of globalization, only those MNCs with their own proprietary inte

32、llectual property and strong brand identities would be competitive in the world business arena. Faced with this reality, Haier knew the time was right to go global.Features: The Haier Group implemented a three-step globalization strategy: 1) enter international mainstream markets; 2) utilize main sa

33、les channels to deepen market penetration; 3) establish Haier as an internationally recognized global brand.Achievements in this phase: 7A tripartite (design/production/marketing) operational framework was established in six key regional markets: North America, Europe, Middle East/Africa, Asia-Pacif

34、ic, ASEAN, and South Asia. Utilizing this strategy, Haier now sells products in over 160 countries around the world. 1.4 The Fourth StageGlobal Brand Building Strategy Phase (2005-) The fouth stage is Global Brand Building Strategy Phase, we will analysis it in section 5.Section Two External Environ

35、ment Analysis 2.1 The PESTEL AnalysisPolitical: Current and future several years, China and the worlds political situation of basic stable political situation, “peace and development” is the Contemporary Worlds two principal themes, so that Chinas current social steady development, developed economy

36、, can say is political stability, it provide a good political environment for Hairs development undoubtedly. In industrial policy, China is in the eleventh five-year project, that means China pay attention to the development of science and technology, so Haier enterprise production of high and new t

37、echnological products will be affected by the preferential policy. But there have something adverse factor, after entering in the WTO, our tariff barrier will cancel gradually, other countries product will enter to China, so that Hair should face challenges by other brands. In the present economic g

38、lobalization and international competitive situation, the large competitive enterprises are of grest importance to the economic development of a country . 8Haire group,which makes the first place in the household electrical appliance industry,has known ist responsibility,and challenge to determine t

39、he world famous brand, into the world 500 strong two in one global strategic target. Explore the mysteries of haier,and learn its business strategy, will surely promote Chinese enterprises into the world stage. Many factors influence the survival and development of Haire group.Economic factorsEconom

40、ic cycle Chinas economic environment show that the home appliance industry will continue to maintain a strong momentum of development. In recent years, Chinas economic growth is obvious. The economy and the environment have a rapid development,so does Haire. With the economy and the living standards

41、 of the people coming up, the demand for high-end products promoted. Air conditioning, computer, mobile phones sell more than the original good . Meanwhile, China has joined the WTO, it is more easier for foreign enterprise to enter the Chinese market, so Haire faces more foreign enterprise competit

42、ion. In this kind of environment, haier is now trying to use their brand advantages to beat the competition,and make the first place in this industry.Social and cultural factorsAnalysis from the social and cultural factors , in recent decades, Chinas social environmental changes quite large, the fir

43、st is the population increasing. China now has a population of more than 13.5 million, namely, to solve the problem of employment of so many people is not an easy thing, this is resulted in that Chinese labor is cheaper than abroad. The second is the way people live have some earth-shaking changes,c

44、ars、mobile phone、washing machine are very common. Lifestyle changes also promote the development of Haire. The third is the values of people have changed. More people are more willing to spend money on making a more comfortable life,with a progress in living standard,the products of Haire also sell

45、well.Technology factorsAnalysis from the technology factors,one of the most dramatic factors that change the fate of human beings is technology. Without the technology and product innovation,enterprise 9cannot develop and have a good future. The reason why Haire can compete with foreign enterprises

46、is that it haa technology and product innovation. Haier group always adhere to create customer value orientation, strive for the technology transfer to the user service plan. Haire rely on the technological innovation to develop. In the Twenty-five years of the development process, from importing te

47、chnology to integrate resources and independent innovation, adhere to the technology innovation subject from market problem and design of high quality and high added value creation concept, through technical innovation,Haire made a success in the Chinese makert and international makert and keep to m

48、ake the first place in the home appliance and other related areas. Long-term technical precipitation obtained numerous achievements: in the product development, Haier first open mode of streaming media CARDS, fills up domestic and overseas technology television, and can hange different function expa

49、nsion module CARDS according to the different needs to meet different demand of consumers; Haier prevent electric water heater, the wall technology provides consumers with security, bath life of electric water heater has officially become a new national standard, and were included in the IEC standar

50、d. A series of new technology and new products are constantly meet and creating the new requirements of users. Haier group totally has 8795 filing patent applications, including 2261 invention patent; Has leading and participate in China standard including the 215 national standard, and had been iss

51、ued 172 national standard, it is the enterprise which paticipate in the most international and national standards,and it was the only one into the IEC management decision-making of the Chinese electrical appliances enterprises development; Cumulative obtains 11 national science and technology progre

52、ss awards, responsible for 5 national science and technology plan projects, bear one of the natural science fund, it is the first enterprise which responsible for the nature fund appliance. Thus, the technical innovation and development is the road that Haire mast go by.Environmental factorsAnalysis

53、 from the of natural factors, the majority of industrial production activities inevitably to destroy the natural environment quality.Now from the United Nations to governments around the world have gave enough attention to the environment pollution,and 10make some laws to stop pollution, This is the

54、 objective need to protect earths environment and, at the same time, the human and the nature harmonious coexistence of the trend of The Times. As for the sustainable development of global consumers, environmental protection and energy saving has become a global household electrical appliance indust

55、ry development trend. As a green lifestyle setters, Haier has launched a series of environmental protection and energy saving appliances. Many years ago, haier was put forward the concept of green environmental protection. In the early 1990s Haier has started to build energy-saving big market. In 19

56、93,Haier launched the first frequency conversion air conditioning in China; in 1998, haier first developed air-conditioning in dc frequency conversion air conditioning; in 2000, haier air-conditioning combined to Europe, the United States, with the most advanced enterprise research and development o

57、f new sight of refrigerant R410a sight frequency conversion air conditioning;in the 2009, the drawbacks in the European market, haier sight frequency conversion air conditioning PAM pulse amplitude, 180 sine dc frequency, third generation scroll compressor technology, such as the three core can be 6

58、.91. In 2008,Haire became the only white household sponsors participants for the Beijing Olympic Games, in 2008,Haire designed environmental protection product and u-series specially for the Beijing Olympic Games. Now in the global environment, low carbon under low carbon concept is pervasive, Haier

59、 launched the global low carbon action, leading a sight of low carbon chain frequency conversion air conditioning, it is not only a reflected of Haire citizen value,and how quickly and accurately meet the difference of the global user requirements in the International age. Haiers modular air launche

60、d a new mode and a new idea, also become the establishment of low carbon chain.Legal factorsAnalysis from the legal factor , the legal norms plays a guarantee,supervision and restriction role. With the development of social economy, the enterprise business frequently, the market environment is becoming

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