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China acceded into the WTO at the end of the 1990s. In answering the call of the state many Chinese companies went abroad only to retreat later to the old way of licensing agreements due to frustrating challenges. Haier decided that going abroad was not just for earning foreign exchange. More importantly, it was for creating China’s own brands. Therefore, Haier came up with the “three-step strategy” of “going out, going in and going up”. Acting on the idea of “taking on the more difficult ones first” Haier started by entering developed countries first to build a brand. Having done that, Haier took to the markets of developing countries with a much more advantageous position. In time, it created the localization mode of “three in one”, combining design, manufacture and sales.
In this phase, Haier implemented a “Market Chain” management which was based on computer information systems and centered around order information flow, to drive logistics and capital flows and realize reengineering of business processes. This innovation on management system facilitated information flows within the enterprise, and encouraged employees to align their value orientation with the needs of users.

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