Haier's Global Strategy and Challenges

A country's shortfall in revenue compared to expenses in a given year.

Interest calculated on the initial principal and also on the accumulated interest from previous periods.

When a country imports more goods and services than it exports.

The rivalry among businesses and nations for customers, resources, and markets.

An association of five major emerging economies: Brazil, Russia, India, China, and South Africa.

The percentage of young people (typically 15-24 years old) who are actively seeking employment but cannot find a job.

The lack of opportunities or access to resources that hinder certain groups from participating fully in the economy.

The rate at which the output of goods and services increases from the input of labour or capital.

Haier's strategy focused on establishing regional design, marketing, and manufacturing centers in the USA, New York, and South Carolina to increase market reputation, image and technology level.

Haier's objective to produce and sell 30% locally, 30% locally to foreign countries, and 30% in foreign countries to foreign countries.

Haier's export strategy identifies that low-developed countries (LDCs) are easier to penetrate compared to developed countries (DCs), but DCs require highly-compatible distribution and marketing channels (e.g., language, culture).

Haier successfully entered new product categories, like refrigerators and washing machines, after establishing their brand recognition, requiring minimal promotional effort.

Haier's USA unit efficiently redesigned freezers for US customers within 17 hours, demonstrating rapid prototyping and achieving high sales success.

Haier employed local employees and invested in local capital to align with the local market. Meanwhile, R&D centers were set up in developed countries, such as the USA and Germany, to facilitate technological transfer.

Haier faced obstacles in globalization like language barriers, inadequate brainstorming sessions, and a need for enhanced R&D capabilities.

Haier's success in international markets depends heavily on its ability to develop expertise in areas like operations, promotion, distribution, adapting to cultural differences, and after-sales service.

Health crises like malaria, tuberculosis, HIV/AIDS, polio, cancer and diabetes are significantly prevalent in developing countries due to insufficient health spending.

Poor health status and health facilities in developing countries affect the workforce, leading to malnutrition, sickness, disability and hazardous work environments

Globalization, despite intended benefits, can exacerbate poverty in developing countries.

Globalization can impact the distribution of income, potentially increasing inequalities within and across countries.

Globalization can lead to widening gaps in income levels between countries.

Globalization can temporarily increase the unemployment rate in developing economies.

Globalization can worsen poverty among unskilled and semi-skilled workers due to issues in labor markets

The ability of wages and employment to adjust rapidly to changing economic conditions.