Haier is considered one of the miracles in electronic appliances in the twentieth century. A company was with deficit of 1.47 million RMB in 1984 and became an international and global company with 72 billion RMB in 2002 and had the average growth rate of 80% in the last twenty years.
Haier has such unique and distinctive resources which have made her outstanding among the competition and she presently becomes the biggest electronic appliance manufacturer in China. Also, Haier, already a multi-national enterprise, had rapidly moved up to the top 5 ranking of the major US appliances makers in 2003. Haier’s management way is well accepted internationally and her achievement is adopted as a successful business model as well as a case study in Harvard University, IMD (Lausanne, Switzerland), Kobe University (Japan) as well as many other universities in the world. With the Chinese philosophy as a base plus the total quality management concepts continuously, Haier attracts the interest of University to study and also benchmark by the other corporations.
This paper uses Haier as a typical example to describe her three phase developments: building brand name, diversifying products and going multinational approach. It also analyses how the philosophical thinking of Haier’s president, Zhang Ruimin, affects on the enterprise culture establishment. Besides, this study identifies Haier’s distinctive resources, which constitute and create her own competitive advantage to sustain the competitiveness in the market. In addition, the research adopts Rindova and Fombrun’s competitive advantage model as a guide to generate a common systemic competitive advantage model with the consideration of human interactions. The overall objective of this paper is to construct a general competitive model that can provide the same or different enterprise as reference.