Market Entry Essay

appreciate chain outline championship example restructuration Domestic market 1. Analysis 2. Factors of achievement 4. International expension dodging 1. Management method 2. Analysis 3. Factors of success 5. 6. Value creation reach Top quality products Adapted and productive management style conference capacity to restructure and timulate other companies Value chain analysis & good partnership Value set up outline occupation model restructuration Domestic Market International expension strategy Value Creation get by Value Chain schema tune model restructuration International expension strategyDomestic Market 1984 1988 Zhang bring about Manager of Quingdao General Refrigiretor Factory Gold medal for product quality in national ambition Value Creation 1989 1991 Chinese market face oversupply Diversification through aquisitions (eg, telecommunication, equipment) regard force out the price and move to high quality strategy 1998 Operational restructuring Value Chain Outl ine Business model restructuration Domestic Market Diversification and internal reorganization ? 7 product divisions ? G topical anesthetic strategy ? 4 Group-wide Development Divisions International expension strategy Value Creation Debate Value Chain Outline Business model restructuration Domestic Market International expension strategy Value Creation Debate Market partake in 2004 Refrigerator Washing Machine Air conditi unrivalledr 28% 18% 30% other ? ? ? By 2002, they accounted for 61% of industry profits. From 1989 to 1996, the number of refrigerators producers 100 to 20 3 Chinese manufacturers = 60% of the market ? Kelon is the chief(prenominal) competitorValue Chain Outline ? Business model restructuration Domestic Market After the Chinese entry in WTO ? new entrants (Electrolux, Siemens) ? Refrigerator unit sales 31% in 2002 vs 26% in 2001 ? Automatic washing machine 38% in 2002 vs 31% in 2001. ? Before 2000 ? lens nucleus profit ? state-owned department stores ? In 200 4 ? individual specialized shops/ private retail International expension strategy Value Creation Debate % Haiers sales Domestic Chain International chain Licensed dealers independent retail shops Government purchases.Management method Market responsiveness focus on meeting customer needs Good after-sale service offerings that Chinese customers was not accustomed (free replacement, warranty) dispersion network one single company (Haier logistics) serving the entire group, good network Be cautious These points tail end be learnt, copied and imitated by multinationals International expension strategy Value Creation Debate Value Chain Outline ? ? Business model restructuration Domestic Market International expension strategy Value Creation Debate Key means for international strategyFocus on market pressure choose difficult market (eg. US, Europe) If we can succeed there we can succeed in easier market ? Look for hard challenges ? Focus on Human Resources assets ? Implement a loc al thinking ? Hire Local employees Value Chain Outline Business model restructuration Domestic Market International expension strategy Value Creation ? Since 1997 Willpower of a global expansion strategy (3third) ? Joint ventures ? Manufacturer of Liebherr (Germany) 8 top ranking ? 1999 Willpower of Haier to receive a brand reputation overseas. Difference with the domestic rival Kelon ? Take example of the successful Nipponese and Korean model. % of sales in the US an EUExport from China (% of total revenue) 1998 3% 2004 17% 1998 3% 2004 8,3% Overseas Made and Sold (% of total revenue) 2002 4,6% 2004 8,3% 70% of Haier overseas revenues come from developed markets Debate Value Chain Outline Business model restructuration Domestic Market.International expension strategy Value Creation Debate Focus on difficult (flat market) and highly competitive markets Penetrate the market with niche products Hire local people Make JV on five continents ? Benefit from existing networks.Pay close precaution to market specifications Make response speed Satisfy customer needs Value Chain Outline Business model restructuration Domestic Market International expension strategy Value Creation Debate increment leverage Restructuration Differentiation Know How After Sales Management Vision Market responsiveness Distribution Glocal Strategy Value Chain Outline ? ? Business model restructuration Domestic Market International expension strategy How would Haier evolve in order to gain more market share internationally and in their category market?