Analysis of Haier Smart Home Co. Ltd: A Case Study

Background Information

1.1 Introduction

Haier Smart Home Company is one of the most influential and known Chinese companies. The Company offers a variety of electronic appliances and home appliances, improving the field of home living in the country. The Company has its headquarters in Qingdao and Shandong in China and has a variety of products, including air conditioners, washing machines, smartphone appliances, and televisions. Haier Company has gained reputational advertisement from their customers for the continued customer-centric approach and innovation, making the services and goods taste Quality. Through the continuous innovation in the Company, it has fully adapted to the ever-changing market competition.

The Haier Company has a larger workforce capacity globally and boosts up to 70,000 employees. Capitalizing on the Internet of Things has massively improved the Company’s smart home concept, thus offering a daily technological home living appliance.

1.2 Current Situation

Currently, Haier Company has been facing increased competition from rival companies and changes in the market dynamics. The Company has thus improved in terms of technological advancement and transformed its market strategies to compete favourably with rival companies. This case study analyses the challenges that Haier Company faces and addresses the issue of innovation and market strategies. Customer focus and consumer electronics have also been essential in the study.

Problem

2.1 identification of the problem

The main problem of the Haier Company is based on the maintenance of leadership, the increased competition from rival companies, and the dynamic consumer preference in the smart home industry. The continued technological advancement has seen the increased growth of numerous rival companies, increasing the production of user-friendly and advanced electronic smart home appliances. Haier Smart Home Company thus has to keep up with the competition and produce even better electronic home appliances in order to maintain their loyal customers and even attract new customers in the market area.

Additionally, in keeping up with the competition from rival companies, HSHCY has dealt with maintaining the affordability of home appliances while maintaining the technological advancement of the products.

2.1.1 Why Solving the Problem is Crucial

Solving the problem of increased competition and evolving consumer preferences is critical for the following reasons;

1. For customer retention and satisfaction. Haier Company has to work on satisfying market consumers to maintain their loyalty. The technological world requires companies to provide quality products and services to increase sales and revenue through improved customer attraction.
2. For the maintenance of the image and the brand of the Company, Haier Company has to invest in technology. The industry of smart home technologies is ranked according to technological advancement and the ability to offer solutions to customer needs. Thus, for Haier Smart Home Company to retain its credibility, innovations and increased employment of skilled employees are crucial for the success of the Company (De & Singh, 2019, p.351).
3. To ensure the stable financial performance of Haier Company, it is essential to address the challenges facing the Company. The continued rise of technology in the world requires that companies invest in technology to meet the demands of consumers. This involves the production of environment-friendly goods and services to increase the revenue streams.

2.1.2 Strategies for Solving the Problem

To overcome the challenges experienced by the Haier Smart Home Company, they should consider the following approach;

1. Innovation and Research: Investing in research and innovation improves the Quality of products being produced, and the Company is aligned with the changing market trends (De & Singh, 2019, p.351). Forming partnerships with technological firms can be an added advantage and, thus, the development of brilliant ideas to better the production of quality home appliance goods.
2. Enhanced Customer Engagement: Enhanced customer engagement provides information about customer preferences. Customer engagement can be done through surveys and social media, thus having a better understanding of the demands of customers.
3. Partnership and Collaboration: Forming partnerships with other companies in the technological space could improve home appliances goods. Partnerships with artificial intelligence companies and software developers in the home appliance industry can enhance the value and Quality of home appliances that are produced to meet the eco-friendly experience that consumers need.
4. Focus on Sustainability: the focus on producing sustainable goods can improve and result in long-term solutions to the challenges of the Company. Sustainability involves the production of environment-friendly goods and the adoption of green technology for long-term solutions.
5. Affordability and Quality: having a balance of affordability and equality in-home appliance production is essential. Negotiating favourable deals with suppliers and increasing the production process at the Company will help in reducing the cost of transportation of goods to consumers. Thus, cost efficiency will have been met and improving the competitiveness of the goods in the market.
6. Continuous Adaptation: Haier’s smart home company is in an ever-changing technological industry. For the constant adaptation of the improved technology used in the making of home appliances, the Company must conduct regular market analysis and increase its competitive intelligence in the Smart Home appliance industry.

2.2 Research Questions

1. To establish Haier Smart Company strategies in the maintaining position as an innovative leader
2. To examine the rapid technological and consumer preference advancement
3. To discuss how Haier company overdo rival companies in the market space

2.3 Research Questions

1. How does Haier Company maintain strategies of positioning in innovative leadership
2. What are some of the rapid technological and consumer preference advancement
3. How does Haier Company overdo the rival companies

2.4 Significance of the Problem

The Haier Company’s problem is essential to be formed to maintain market relevance. Solutions to the problem improve the Company’s sales, market grip, and the advancement of the brand image. The Company, therefore, will have improved in the dealership of home appliances and increase customer loyalty.

Maintaining leadership and innovation in the Electronic and Smart Home Market

The consumer home appliance industry has continuous rapid technological growth and advancement. Rapid technological growth requires Haier Company to consistently invest in the innovation of quality products and meet the demand pressure of consumers in a competitive market (Yanbin et al.,2020, p.113). When the Company does not change according to the changing demands of consumer taste, the Company is at risk of reduced profitability and loss of market share.

2.5 Research Philosophy

To navigate the research question, the adoption of the interpretivism method will be used in this case study. Interpretivism involves the Emphasis on the subjective nature of human experience and the social construct of reality. To understand the problem that faces Haier Smart Home Company, the best approach is to use interpretivism, which considers the market dynamics and evolution of consumer preference.

Interpretivism as a Research Philosophy;

Interpretivism states the importance of having an understanding of social phenomena through the use of human beings’ experiences, meanings, and perceptions (Curry,2020, p. 910). It hence recognizes the aspect of reality and is deemed to vary from one individual to the other. In this case study, interpretivism gives detailed information on the decisions made following the existence of the ever-changing market dynamics and consumer preferences.

Social Construction and Subjectivity in Haier Smart Home Company’s Strategy

The main success of Haier Company is directed towards recognition of the positive social image within its brand. Through interpretivism analysis, it is fitting that the Company is more concerned with consumers’ perceptions than the objective of the general market. Haier Company has fully developed the idea that consumers see the smart home industry as a lifestyle and status symbol in society (Curry,2020, p. 917). Through this understanding, the Haier Smart Home Company has been able to produce Quality and affordable goods that serve the needs of their consumers, thereby having an edge in the market.

Adaptability and Change in Haier Smart Home Company’s Organizational Structure

Interpretivism also covers the change in the organizational structure and culture of Haier Smart Home Company. The Company needed to become more flexible in its organizational structure, thus having an open mind to change in their organizational structure considering the social constructs (Hongjia &Yue, 2023, p.24). The Company’s success is based on the continued refined strategy and reinterpretation in order to have a better strategy. With the willingness to adapt and change with the ongoing changes in societal norms and feedback, the Company thus improves the production process of quality home appliances and delivers good service to their customers.

Adaptability thus has enabled Haier Smart Home Company to elevate revenue collection and profit margins through the application of interpretivism perspectives. The Company, therefore, can adapt to the changing market dynamics.

Multiple Perspectives and Stakeholder Engagement;

Interpretivism has enhanced the incorporation of different perspectives in the analysis. In this case study, it is thus essential to acknowledge the diverse and other stakeholders that are involved in the decision-making process. Interpretivism thus allows for the understanding of different stakeholders that are in play, including suppliers, employees, and the authorities on the verge of success of the Company. The relationship of the other stakeholders in both the Company and the market space allows for a diverse interpretation of results and the decision-making process. Decisions that are made, therefore, are aligned with the interests of the stakeholders in the business field.

Hongjia and Yue (2023 p.24) Employing the interpretivism research philosophy thus provides an informed decision for the Haier Smart Home Company’s strategy and dynamics in the organizational structure. Through the recognition of the social construct present in the market space and the potential changes, the philosophy allows for better analysis. The ability of Haier Smart Home Company to achieve success in the competitive industry of smart home appliances is evident that the Company has based its research on the perceptions and experiences of consumers.

With interpretivism, I have gained an understanding of the stakeholder’s engagement, the Company’s adaptability, and the displaying of the relevant business analysis through consumer perceptions and experiences.

Types of Data

In this case study, the qualitative data method will be used to help reveal the organizational culture, strategic decision-making, and consumer preference of Haier Smart Homes Company. The qualitative data collection method is used in the exploration of multifaceted subjects and an understanding of the human experience in the Company.

3.1 Methodology

3.1.1 Data Collection and Sources

In-depth Interviews: Qualitative data will be collected from Haier Smart Home Company’s stakeholders. The stakeholders in Haier comprised engineers, senior executives, department employees, and product managers. The interview will be open-ended and semi-structured, allowing the employees from the Haier Company to share their experiences and perspectives in the home and electronics market space.

Document Analysis: Document analysis from Haier Company, such as product development records, market research reports, and strategic plans, will be used to have more information on the Company’s historical context and decision-making process (Hürlimann, 2019, p.119).

Literature Review: The industry reports, academic journals and relevant literature work will be used to ensure the theoretical concept and context of the Haier Smart Home Company.

Customer Survey: A Customer survey gives an insight into consumer preference. A customer survey will be conducted to show the results of customer preference for the smart home appliances and the electronics being sold by the Haier smart home company. The survey will be performed using a quantitative data method.

Focus Group Discussions: Group discussions could be held that comprise Haier’s potential customers and consumers in order to understand better their expectations, preferences, and perceptions of home electronics.

Secondary Data Analysis: Secondary data analysis is an important data collection source that could help in identifying the historical market structure of Haier company. The Company’s position in various market conditions could also accessed as a factor that affects the purchasing decision among consumers.

3.1.2 Data Analysis

The qualitative data and document analysis from the Haier Company will be used as the primary source of conducting analysis. The data analysis process involves the identification of current patterns and themes in emerging markets. The data analysis will be based on the qualitative data survey method, thus making it easier to identify the challenges that Haier Company goes through.

Thematic analysis: The case study will include the use of a thematic study that allows for the identification of themes from case studies, interviews, and focus group discussions.

Comparative analysis: Comparative analysis gives detailed information about Haier Smart Home Company, thus allowing for improvements in non-performed areas in the Company.

3.1.3 Sampling Approach

The sampling approach involves the selection of a specific group from which the actual data is collected in research. There are different types of sampling approaches, including random sampling and stratified sampling. Systematic sampling, non-random sampling, and capture-recapture method. In this case study on the analysis of Haier Home Company, the sampling method that will be used is random sampling.

The random sampling method will be mainly used for customers, whereby random customers from a large population will be issued with closed-ended questions to represent the general view of customers on the Quality and innovative nature of the products from Haier Company (Kirongo & Odoyo, 2020).

Individuals from various departments in the Company can give insights into the market dynamics and innovative processes, which could be used during in-depth interviews. The sample team will also include members of the hierarchical levels of the Company with every station.

The different sample methods that give detailed information about the Haier Smart Company ensure that the case study research and understanding of the reliability and validity of the study.

3.1.4 Justification of the Approach

Justification of the approach designs the various elements and opportunities and elements that exist in Haier Smart Home Company. In this section, analysis of qualitative Emphasis, interpretivist philosophy, thematic analysis, and mixed methods of the case study will be looked into to justify the analysis of the smart home company.

Qualitative Emphasis: various elements are taken into consideration when justification is based on qualitative. Innovation and leadership are challenging aspects of the smart home and consumer electronics. Qualitative gives an insight into the subjective elements and the internal changes of the smart home organizations (Kandel, 2020, p. 658). Due to the presence of a matrix organizational structure within Haier Company, different departments work on other projects with similar aims.

Departments that fail to achieve the project aim within a given duration of time result in an overall drop in innovation enhancement of the whole Company. Different people in the various departments of smart home electronics have other leadership skills, thus different modes of control and supervision of employees in different departments.

The qualitative Emphasis thus employs the possible factors considering the internal changes that take place on a daily basis in Haier smart home company.

Interpretive Philosophy: Haier Smart Home Company uses an example of Taoist Philosophy well known as RedDanHeyi- hewn out of decades of experience (Ratan et al., 2019, p. 15). The philosophy suggests that Haier Company uses a different method in the organizational structure, which is not easy to understand. The company philosophy is based on three subjects that majorly emphasize indivisibility, integrity, and zero distance in a common world where only relationships matter.

The application of quantum physics and management in Haier Smart Home Company suggests that employees function well when they are managed, led, and structured to function like a natural biological system. The philosophy continues by offering that everything is connected to everything and that every element depends upon the balance and health of the whole system.

The case study thus revolves around an understanding of how the Company’s employees work around opportunities and challenges. The interpretation of the Company’s functionality based on the quantum of physics and management gives a better understanding of how Haier Smart Home Company conducts its operations (Man et al., 2020, p.50).

Thematic analysis: Thematic analysis has been a globally accepted method for qualitative data analysis. The different themes, patterns, and simulations within the data issues give a more comprehensive range of exploration of the research questions.

Mixed Methods: A combination of customer surveys and in-depth interviews show a piece of detailed information concerning the challenges that exist both externally and internally.

3.1.5 Validity and Reliability

Validity: to enhance the facts of the research, it is essential to use different methods to collect data, such as surveys, interviews, and focus groups. Multiple combinations of data collection methods suggest that there is a comparison of findings from different sources, thus increasing in validity and credibility (Xing., 2023, p. 134). Members of Haier Smart Homes Company, including stakeholders and departmental leaders, can be reviewed to enhance the validity of the data interpretation.

Reliability can be ensured through detailed data analysis techniques such as pattern recognition, coding, and thematic analysis. An overall application of these data analysis methods provides there are consistent results, thus promoting reliability.

Conclusion

In conclusion, this case study analysis gives an in-depth understanding of Haier Smart Company, considering the current challenges, the different products sold, and the history of the Company. The research emphasizes ways through which Haier Company can improve its innovation to suit the ever-changing technology. Through advanced technological settings in the Company, consumer expectations can be met, providing Quality and environment-friendly smart house solution products. The chosen interpretivism and research philosophy have been aligned with the objective of the study. Consumers interact differently with smart home electronics; thus, being able to meet the expectations of most consumers requires an understanding of the emerging technologies. The Company’s stakeholders, to offer contextual information about the product’s Quality, used qualitative data collection methods such as focus groups, surveys, and in-depth interviews.

The methodology and the sampling approach used in the research are justified to indicate the understanding and exploration of the attitudes and behaviours of the customers. The detailed use of interpretivism and qualitative research methods provided solutions to the existing challenges facing the Haier Smart Home Company. Findings from this case study will serve as an informative tool that helps in decision-making processes. The Company thus can improve innovatively and offer an excellent, satisfying quality electrical home appliance to consumers. As a result, Haier Smart Home Company can compete favourably in the dynamic market structure both locally and globally.

References

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