Question

3. What are the countries that you would suggest Haier company should concentrate upon to expand ? Why?

Answer 1

SOLUTION : -

Haier has now become one of the fastest-growing provider of home appliances in the world.

It should try to expand its outreach not only in China and other emerging markets but also target Europe, Japan and US, in order to become a renowned global brand.

Haier can increase its cross-border investment and initiate greenfield projects in countries such as

Philippines

, India

, Russia and

Poland

to expand its production in these countries.

The company's strategy should be on the localisation of production instead of only looking at market opportunities. Many emerging markets offer great investment opportunities and incentives like SEZs( Special Economic Zones) and support from local authorities that is crucial for a good long term investment plan.

Incentives also include below-market facility rental fees and infrastructure support for investors setting up operations in these zones.

With regards to US and other developed markets, undertaking FDI-related activities in these nations and opening greenfield projects, technology and design centres would help in expanding its operations.

It could also acquire other local players in these markets to exploit synergy effects. Mergers and acquisitions could be a key strategy here to understand the local market.