Haier price war over refrigerators, for this reason low

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 a month 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
on the street outside to send a message that subpar quality will not be
tolerated (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 sweet potatoes
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.

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.