Myths and Realities of Innovative China the Case of Haier Company – Haier’s Historical Development

Haier group started to work in 1992 by renaming the Qingdao Refrigerator plant which was shaped in 1984. In 1984 an organization together with Liebherr was created following a watchful assessment of 32 potential agreeable confederates. Haier transported in Liebherr’s four-star fridge processing innovation and gear to China. Liebherr had 70 years of interaction in generating brilliant fridges. The Chinese features were a few star advances and obsolete-formed with a solidifying ability of – 12 degree Celsius. The solidifying ability of Liebherr’s four-star innovation was – 18 degree Celsius. Haier ended up being the just Chinese ensemble to give four-star refrigerator mechanics following the partnership with Liebherr.
Following collusion, Haier sent above and beyond 40 of its beat engineers and managers to Liebherr. Liebherr authenticated to be a truly fruitful teaching establishment for Haier’s beat R&D talents. They concentrated on the growth of four-star refrigerator, and possibly aced the crux innovative aptitudes needed for improving progressed fridges. In 1985, a year following it permitted Liebherr’s engineering, Haier was fit to present its first four-star icebox in the Chinese business. This feature immediately secured Haier as the advancing refrigerator maker in China. The figure 1, shows tremendous growth of Haier from 2008-2012 in terms of revenue and net income. The overall sale pattern of Haier Electronics Company, for the years 2008 to 2012 is provided along with forecasted sale in the same year as well as for the years 2013 and 2014, is provided in Figure 2. There is upward trend which shows an increase in sales. The forecast till year 2012 is very close to the actual sale, which shows the accuracy of the forecast sales. For the subsequent years after the year 2012, we can expect the same pattern of the Haier’s sales. Haier, today makes about 15,100 feature mixed bags in 96 item lines. Over the period of time, Haier has not just upgraded the value but added objective and innovative proficiencies as well. In 1993, nine years following its establishment, Haier was certain enough to start a worldwide operations. The role of present CEO of Haier in upgrading the quality of products is obvious. His order of destruction of 76 defective refrigerators was a symbolic step of moving towards quality production.
In 2003, the Haier brand topped all Chinese trademarks in a nationwide survey. The Chinese Fortune Magazine (issue 8/2004) appraised Haier the second in their catalogue of most obviously appreciated ensembles in China. In this rating Haier was observed as number one in the fields of administration display, development capacity and social obligation. In 2004, Haier was distinguished as one of the World’s 100 Most Recognizable Brands in a worldwide name mark post altered by the World Brand Laboratory 10.
As per 2006 Euro-monitor statistics on outfit bargains, Haier has the most extensive planet business sector mark impart for fridges, and it is the fourth right around the worldwide white merchandise makers. Among 2003 and 2006, Haier ranked first in terms of the most part initiative right around terrain Chinese ensembles in the Wall Street Journal Asia’s anniversary study of Asia’s 200 Most Admired Companies. In 2008, Haier ranked 13th on Forbes’ Reputation Institute Global 200 record. In addition in the same year, Haier ranked first around Chinese endeavors on the Financial Times record of the most exceptionally regarded worldwide teams. This short article thoroughly discusses the historical development, diversification process and globalization strategies of Haier Company in China.

Figure-1

Figure 1. Revenue over the time and Net Income over the time (2008-2012)

Figure-2

Figure 2. Actual vs Forecasted Annual Sales (2007-2015)