Haier Article

1. 0 Advantages

Haier group is a multinational production company providing consumer electronics and home appliances. In 1984, it was been founded in Qindao, Shandong region, China, using a joint-venture contract with Liebherr, a Germany's refrigerator company. Under the progress over 30 years, Haier offers transferred from a single-product company into a global producer with multiple product lines. They have expanded their brand to brown items and white goods. Currently, Haier is a 4th most significant white items manufacturer in the world. The business range of Haier is technology research, application and manufacturing, trade and financial services (Haier, 2015).

2 . zero Company Prices Strategy

Haier's generic item strategy is differentiation and focused difference. For example , a lot of products of Haier are designed and manufactured for specific customers. Meanwhile, comparing with sales amount, Haier insists that the customer satisfaction and standing are more important. The customer devotion can be power by substantial brand value. Thus, to charge bigger prices with higher quality products and higher manufacturer value than those of the competitors in Haier's main pricing strategy. There are some ideal management accounting tools and management systems to support the implementation an excellent source of pricing technique.

2 . 1 OEC management-control system

In 1984, Zhang Ruimin, CEO of Haier decided to implement OEC program to the stock. According to the reason from Wang Yingmin, the HR management director of Haier, the target of OEC system is general control of exactly what every worker finishes in the or her job everyday with a 1% increase more than what was done the previous working day. Therefore , employees are able to examine their work performance on their own.

OEC management-control strategy is based on the market competition, strives to consistently raise the firm's goal and improve managing skills to attain a sustainable competitive edge (Thomas, 2005). Target placing is the most important subsystem of OEC system. Based on the market demand forecast, Haier headquarters units quality concentrate on, target of operating effectiveness and concentrate on of creativity for every categories. The second subsystem is top quality control; it is to ensure the availability quantity, quality, material usage, etc . This kind of subsystem is useful to control the amount of raw material and goods so that the business is able to control and reduce the price of inventory. Bonus mechanism may be the last subsystem. This device is not only about motivation of employees' working efficiency, although also which includes quality-check discount codes for returns or fines.

Therefore, after 3 subsystems, the availability efficiency with the company will be highly increased; the quality trouble and tautologize cost will be reduced observably. Meanwhile, the inventory price will be manipulated to bare minimum, and labor cost will be decreased by simply high doing work efficiency. Haier can boost the profit margin by substantial sales costs with low production expense, and make the most in competitive market.

2 . 2 Benchmarking

Because example of a/c, Haier's products are categorized in Residence air-conditioners and Commercial air-conditioners. Compared with others, Haier's air-conditioning is more expensive 20%. Furthermore, unlike different electrical manufacturing companies, Haier under no circumstances produce low-power air-conditioning. Therefore , Haier's proper position in market is high end products in high prices. During the period of value war and bubbles, very clear strategic position and market position will help Haier setting short-term goal accurately to ensure that avoid the reduce of earnings.

installment payments on your 3 Value Chain & Supply String

For logistic network, Haier is the only electrical product industry firm who adopted the ERP system. In the mean time, the Haier's logistic source chain administration is applying JIT approaches according to Haier's individual characteristics. Furthermore, Haier purchases...