Case analysis Study Example | Topics and Well Written Essays - 750 words - 2

Analysis - Case Study Example , they have not managed to make significant inroads into the rapidly expanding Indian economy which despite being Asian and sharing a common border with them practiced a different culture. In recognition of this scenario, Haier launched in India in 2004 and appointed Banerjee T. K., an Indian National as its president for the country’s operations. They adopted the three-in-one strategy that had been successfully adopted in other global markets like America and Europe. The first step of the strategy involved exportation with no fixed distributor. The second step introduced a centralized distributor. The third step saw the company set up a manufacturing plant in the country. Their market analysis determined that for Haier to break into the top three home appliances brands in India the company had to adopt a localization strategy and an aggressive marketing campaign. They adopted this measures but despite their efforts the company only managed a 7.7 percent turnover increase within India in the 5 years of Banerjee’s presidency. With respect to the situation and the fact that the Indian investment was not paying off Erick Braganza was appointed as president in 2009. The company’s human resource underwent an overhaul, operations streamlined and a new marketing strategy adopted. In response to this measures the company experienced a period of growth and increase in turnover, though the sustainability of this growth was questioned. Determining the sustainability of Haier’s growth in India necessitates a market and situational analysis. A situational analysis of Haier’s position in India shows that they; had a bad reputation as low quality electronics imitators whose only advantage was low product prices; cultural differences, most of India’s population residing in rural areas meant that there was a cultural clash between the Chinese owned company and rural Indian market; high Indian government imposed tariffs on foreign owned business establishments that