Motives underlying Haier’s entry strategy and development
Haier developed their strategy through their uniquely customised approach when entering
each specific market at a specific time. The main motive underlying Haier’s
internationalisation is to achieve competitive-oriented foreign market-entry and development
(Young et al, 1989). “Only by actively taking part in global competition can we seize a chance
to survive,” said Zhang Ruimin (People’s Daily, 2000).
(1) Building permanent market position
Haier built their permanent market place through market entry or expansion to defend or
improve its market share. Haier’s exporting or other entry modes were all focused on building
a world-famous brand. They clearly declared that: “exporting to build a brand, not to earn
foreign currency”, “We are not selling goods, but goodwill”, and “Whenever Haier is
mentioned, the entire world will know about it”.
(2) Meeting or following competition
In response to competitors’ actions, Zhang Ruimin said on the Entrepreneurs Day (Zhang,
2001) that, “When foreign companies come to China, they do not come for a benevolent
purpose. They follow a very simple principle: the law of the jungle. Chinese enterprises must
not fail to be fully aware of this fact. If you treat yourself as a sheep rather than a wolf, you
will be a prey of a wolf; if you act as a wolf, you can compete for sheep with others