It was during the 1990s and state policies encouraged business mergers and acquisitions. However, some companies either failed after annexation and reorganization, or decided that it was in their interest to get specialized rather than diversified. In the innovation spirit of Haier Culture Revitalizing the “Stunned Fish”, Haier over time acquired altogether eighteen domestic businesses, ushering in a broader development dimension in terms of diversified operation and expansion in scale. Competition in the home appliance market was stiff and quality had become users’ basic demand. Haier was the first to launch the “Star Service” system. While other home appliance manufacturers were engaged in a price war Haier was already well positioned to win with its differentiated services.
At this stage Haier began to implement OEC (Overall Every Control and Clear) management, i.e. overall control and sort-out of everything that every employee finishes on his or her job every day, with the aim to “accomplish what’s planned each day and improve on what’s accomplished the previous day”. This management approach also became the cornerstone of Haier’s innovation.