Assignment Sample on Strategic Management
Introduction
Haier Incubating Entrepreneurs in a Chinese Giant was published by Harvard business review and this case study is the HBR case studies. This case study is drafted and designed in such a manner that helps the readers to face and have a real life experience that they can solve the issues. This case study is useful for better understanding of business in this dynamic market atmosphere and it improves the concept readers concept.
This assignment is based on the case study which helps to find the evaluate and examine the strategy of Haier to incubate entrepreneurs. Also the approte theory and concept is going to be used for evaluation. By evaluating the case it is found that there is an effective and strategic way to resolve current issues in the company. These current managerial programs can provide strategic growth to the organisation. Haier is able to provide a platform for entrepreneurship which helps to set macro platforms for the employees as well. the company is able to get a strategic growth in business for entrepreneurial resources (Kumarasinghe, 2021). On the other side, there are new opportunities for growth as this sets an intelligent incubation platform for blinding the entrepreneurial ecosystem in the company. By using the new innovative technology, mutual platforms and investing in mutual promotions, the possibilities will get enhanced as this will provide awareness towards the brand.
It has been identified in this current era that the emerging market trend has importance of innovation and strategic management practices. In order to promote innovation there is the importance of entrepreneurship. Hence the central issues will be identified and as a tool Porter’s Five Force will be useful for getting alternative solutions.
Company background
During the year 1984, Haier was established in the market and since then the company has become a popular chinese company (Hanif, Kamran, and Hanif, 2017). The company has been developing their business strategy since 2005 and has established their brand name on the global scale. At the beginning the company was formed as Qingdao Refrigerator company and later in the business got an growth and Haier became a partner with the Liebherr company (German company) along with Qingdao. The company always looked forward to growing in the competitive atmosphere in the market hence, they wanted to extend the business in the regions of the USA and Asia during the year 1990. There was multiple completion in the market with other companies like Paykel, Italy’s Candy Group and New Zealand’s Fisher but the company achieved success once they focused on artificial intelligence and technological advancements and introduced the market with multiple smart gadgets. They have followed multiple strategies to establish their market on the international scale and become successful in capturing the market.
Strategy of Haier
As it is mentioned earlier, the company uses strategic business strategy to identify the problem of the customers and they have potential to provide good quality products. The company holds ISO 9001 certificates as they promote business by maintaining environmental sustainability. Though Haier gave opportunity to the entrepreneurs for shedding light on their achievements (Aichner and Gruber, 2017). There is implementation of innovation which strategically improved the performance of the company. They do not apply any traditional methods and it is becoming valuable for the customers as this provides better opportunity and solution to the problems. The sustainable business strategy for the company is to include the incubation of entrepreneurs which helps to perform better in the competitive atmosphere in the market.
Role of Incubating Entrepreneurs in Chinese Giant
Haier Incubating Entrepreneurs are able to find the risks regarding the financial instability and they are useful to work towers the economical growth of the company. On the other hand, the Haier entrepreneurs are able to maintain cost of business as well as they control the products price in order to get economic stability (Zhang and Liu, 2020). Apart from that the entrepreneurs are focused for the sustainable workforce management in Haier. From the perspective of GDP, it has been identified that the Haier Incubating Entrepreneurs are able to provide most of the provide as the economical components are maintained. On the other side, the per capita GDP is able to influence the economical factor because higher disposable income is based on higher GDP and Entrepreneurs in a Chinese Giant are able to set a higher scale. Entrepreneurs are able to invoke the value chain network in the company and on the other side they prove a competitive advantage to the market in multiple ways (Yuyue and Haibing, 2020). Haier Incubating Entrepreneurs in a Chinese Giant thinks according to the perspective of the customers and gives opportunity to sell products at the cheapest cost possible. Hence the products are less expensive that provide better opportunity for marketing and also it is able to enhance business intelligence.
Issues, threats and challenges for Haier Incubating Entrepreneurs in Chinese Giant
There is multiple evidence for the success of the company. It is found in studies that Electrolux, LG, Whirlpool are multiple companies that sell similar products like Haier and still the company is able to capture the largest market in Qingdao. According to the report of 2016, the revenue was $35 billion and also it has a total 75,000 employees in the world, where 27,000 employees were from outside of China. Compared to any other dometic companies, the company Haier is able to enhance its 18% business per year and over the decades the business has grown by 23%. On the other side it is found that the journey was not smooth for all time. In recent years more than 10,000 employees were dismissed from Haier (Ye and Dong, 209). Though the company generated more than thousand jobs for enhancing the network of the company. The Incubating
Entrepreneurs faced multiple problems for building trust for the customers and that they have invested in market research. Here the recruitment of large financial resources becomes a barrier for making strategic plans for the company. Also, time is crucial for a desired sales of economic growth. The Incubating Entrepreneurs face multiple challenges and barriers to customise the products and there are practical issues regarding the targeting of the customers.
Knowledge and understanding from Porter’s Five Force
Porter’s five force is effective for the knowledge and understanding the ability of Haier Incubating Entrepreneurs in a Chinese Giant.
Threats for the newcomers
There are potential newcomers in the industry and the situation is even more challenging because the market share is vast (Wang, Zhang, and Cui, 2020). There is pressure for essential enverst and the market is diversified for the new companies. Intense cash flow as well as existing talent in Haier can be an advantage to beat the market. On the other side there is limitation on the capability in the industry and also the expansion is limited for the new companies but the earning capacity of the companies can be challenging for Haier. Hence, maintaining the price of the product is mandatory.
Threat of the alternative products
It has been found that Haier Incubating Entrepreneurs in Chinese Giant includes multiple competeos in the market who sell similar products (Wang, 2018). Hence there is always an alternative product in the parmet as a threat. On the other hand the unique feature of the products in Haier is an advantage to rule the market. It can be claimed that the alternative products may not be able to impress the customers because the choice and tests are different for an individual.
Bargaining power of the Buyers
Buyers refers to the potential customers of Haier Incubating Entrepreneurs in a Chinese Giant. Here the agents are from the supermarkets and Hypermarkets who handers the core buyers (Kumarasinghe, 2021). It is found that the company did not face any issues regarding switching cost for switching buyers and the multiple offers for the buyers enhanced the power of buyers. The Entrepreneurs can must shed light on enhancing product demand and differentiating its products. This can be useful for handling the power of buyers. The offers must be exclusive for attracting the customers in the risk oriented situation in the market.
Bargaining power of the suppliers
Suppliers refers to the person who provides supply of raw materials to the company for making products. Here it has been identified that the key source of the suppliers of Haier are the vendors who work as independent suppliers (Jiang, Hu, and Wang, 2019). Here the suppliers get an opportunity to provide service in multiple alternative markets.this could be a challenging situation for Haier regarding insufficient products in the market. On the other side the company has their own manufacturers resources and equipment which is a drawback for the bargaining power of the suppliers. Here the entrepreneurs can contact the other suppliers in the market for avoiding the challenging situation. Also they can invest in manufacturing the quality of product by monitoring the consistency.
Competitive rivalry
It has been found that the market is very competitive as well as fragmented. The competenties holdes different positions in the market (Kamran, 2017). The brand image can be managed if there is proper use of management techniques by the entrepreneurs. The buyers get multiple opportunities to purchase products and the cost can be switched relatively. Hence these factors can be challenging for the Haier. Though the range of products are not high but still the high fixed costing of products in Haier can affect the customers. The only way Haier Incubating Entrepreneurs can overcome the situation is by investing in R & D in order to build new products and maintain customer relationships.
Critical evaluation of the case study materials
From the critical analysis of the case study, it has been found that most of the problems faced in the company are by the higher authorities (Hanif, Kamran, and Hanif, 2017). Such as the protagonists, the CEO and the management group. It is essential for the readers to know the problems faced by Haier Incubating Entrepreneurs in a Chinese Giant are very common issues but the issues can be developed by using multiple management and leadership theories. It is essential to identify the problems and this case study provides a clear solution of the issues.
Conclusion
It can be concluded that the company Haier is able to establish a strategic market and it is able to achieve an intense customer base for using exclusive business and marketing strategy. From the discussion of Porter’s five forces, it can be concluded that the company has multiple competition in the market and on the other the case study defines the common issues and challenges that a company can face during growth. Though the company strategies are potential and Haier looks forward to environmental sustainability, there are multiple factors that make the company unique. According to the case study, the challenging situation can be improved by the auntropronues in Chinese Giant in an effective way (Aichner and Gruber, 2017). The strategies of the company are better evaluated with the help of porets live forces. The five factors identified multiple changes and also the way Haier heald will be issues with productive strategies are implemented in this essay. For maintaining the organisational structure, the entroprours plays a major role in the organisation. The strategy of using innovative technology makes the company unique among all the other existing competition and the commerce in the market. By examining the case study, some issues have been found that the companies and their employees faces during regular work. Hence the study is useful for successful implication of the problems. The trends in the marte have changed the business strategy for multiple companies but here this case study is proving ideas for flexible marketing strategy and flexible approaches for marketing, that the companies can enhance their profit in strategic level. This is also concluded that Haier companies focus on the improvement and that they do not use traditional techniques for business growth. Using innovation and modern technology in the company is able to enhance the customer base.
References
Hanif, M.I., Kamran, A. and Hanif, M.S., 2017. Collaborative Innovation Of Strategic Emerging Industries: A Case Study Of The New Generationof Information Technology Enterprises In China. IBT Journal of Business Studies (JBS), 2(2).
Jiang, S., Hu, Y. and Wang, Z., 2019. Core firm based view on the mechanism of constructing an enterprise innovation ecosystem: a case study of haier group. Sustainability, 11(11), p.3108.
Kumarasinghe, S.,2021. Corporate accountability and human rights in MNCs in Asia: a case study approach.
Wang, M., 2018, January. An Analysis of the Problems Existing in Internal Control of Accounts Receivable-A Case Study of Haier Group. In 2017 4th International Conference on Machinery, Materials and Computer (MACMC 2017) (pp. 544-547). Atlantis Press.
Wang, T., Zhang, W. and Cui, N., 2020. How Can Multinational Brands Acquire Legitimacy in Developing Markets? A Case Study of Haier and TCL in Developing Markets. Journal of Marketing Management, 8(2), pp.77-94.
Ye, W. and Dong, J., 2019. Financial control supports the co-evolution of product services and employee competence: Take Haier Group as an example. Procedia CIRP, 83, pp.808-813.
Yuyue, K. and Haibing, L., 2020. The Concept and Process of Innovation Leading Based on the longitudinal case study of Haier (1984-2019). In E3S Web of Conferences (Vol. 214, p. 03013). EDP Sciences.
Zhang, A. and Liu, S., 2020. A Case Study of an Innovation of Responsibility Accounting At an e-Commerce Company. Academic Journal of Humanities & Social Sciences, 3(6).
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