Haier Lago, U., & Liu, F., 2015). Thus, Haier

Haier
(Haier Group Corporation) originally Chinese brand was focused on tendering
their local market. Haier was previously known as Qingdao Refrigerator Company
(Haier Group Corporation, n.d). Their local market was competing in a price war
over refrigerators, for this reason low costs means low quality products. Haier
was in debt and producing very few refrigerators in the 1980s (Fischer, B.,
Lago, U., & Liu, F., 2015). Haier then hired Zhang Ruimin to be managing
director; Zhang went to their warehouse and destroyed all faulty refrigerators (Fischer,
B., Lago, U., & Liu, F., 2015). The message from this day forward was to
ensure the quality of the product they were selling. In the 1990s Haier received
a complaint that their washing machine was not performing to the standards Haier
is held to, upon inspection it was because vegetables were being washed in the
machine (Fischer, B., Lago, U., & Liu, F., 2015). Thus, Haier adapted and
released a vegetable washing machine for this new market.

Haier
started to adapt products for small areas with very little competition, just
like the vegetable washing machine. Haier launched a mini fridge after
assessing the needs of college students and their small (dorm) living space.
While in other areas like Pakistan led to Haier producing very large washing
machines to satisfy the washing of normal Pakistan clothing/heavier clothing
loads (Haier Group Corporation, n.d).

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Haier
would asses an area, see the needs and innovate a product to solve those
issues. Haier was making what is referred to niche products. Products that were
specific to issues arriving in everyday life targeted towards specific areas of
the world.

A
culture challenge that Haier faced was initially was being able compete with
local companies selling products for lower prices or with more reputation. To
compete better Haier opened production centres all over the world to not only
distribute faster but expand as a global enterprise.