additional content company is known for several distinctive capabilities : a precise understanding of consumer needs , especially in China and other emerging markets ; the ability to rapidly innovate new types of appliances that meet those consumer needs ; the management of complicated distribution networks , a skill honed in the complex Chinese market ; and a high level of execution ability , including the automation of factories to deliver products to consumer specification . ( See “ Haier ' s Capabilities System ,” below .) These attributes have served it especially well in China , allowing Haier to outcompete more experienced appliance companies such as Whirlpool and Maytag in that country . In fact , Haier ’ s prowess — and particularly its emphasis on “ what we can do and who we are ” rather than on “ what we sell and how we make money ” — shows the kind of capabilities needed by companies that were founded in emerging economies if they are to succeed in the global sphere .
Tianzun air conditioner ( at left ), introduced in 2014
Haier ’ s Capabilities System Haier is one of 12 companies that were studied closely in a Strategy & research project on distinctive capabilities and coherence .
Value Proposition : Haier ’ s “ way to play ” in the market ( its value proposition ) has gradually broadened since Zhang Ruimin became CEO in the mid-1980s . The company first took the role of a category leader , maintaining top market share because of its reputation for quality in China . Then it became a customizer ( adapting its products to customer demands ) and a solutions provider ( helping consumers manage issues like water quality and home design ). Haier now sells not just home appliances but related services , adapted to consumer demand in China , and , increasingly , other markets . Haier delivers its way to play by excelling at four differentiating capabilities .
Source : Strategy That Delivers , by Paul Leinwand and Cesare Mainardi with Art Kleiner ( forthcoming from Harvard Business Press , 2016 )
Haier is now the fastest-growing provider of appliances in the world . Since 2011 , it has held the largest worldwide market share in white goods . With its upscale brands in China , such as Casarte , and its growing presence in the United States , Europe , and Japan , this US $ 38 billion company has moved out of the value-priced and niche appliance domain to compete directly with top-of-theline appliances from more established companies . It has accomplished this by being a consistently coherent and capable company : staying true to its core identity as a company dedicated to solving problems for consumers , while continually reinventing itself with imagination and verve .
Customer Service Leadership
Much of the credit for Haier ’ s success accrues directly to Zhang Ruimin , the company ’ s CEO since 1984 . Throughout
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