Company:

Haier Group Corporation

SKU:
32 inch LED TV
Model 32K6000U

Competitors:
Orient, TCL, PEL, Changhong RUBA

Supply Chain:
The supply chain of Haier is governed by RUBA Digital.

Vendors:
Almost 200 distributors of Haier in Pakistan.
Integration:
100% of the LED parts are manufactured in Pakistan, so Haier is using backward integration.

Contingency Plan of Haier:

Haier plays on policy and price in market.
If the sales targets are not achieved and backup inventory increases then Haier exceeds its
markup on the list price from 6% to 12% to its distributors so that sale increases and it does not
shrink or effect profits because Haier is providing full product in Pakistan. And there are no
additional charges of customs and excise duties because all parts are manufactured in Pakistan.

If Demand Increases:
If demand increases and Haier has no backup inventory. Then the company outsources the LED
from its competitors and throw other model into market of 2nd quality.
Joint Venture:
1. Orient
2. TCL
3. PEL
4. Dawlence
5. Chanhong Ruba

Competition to collaboration:
A new strategy named as “co-opputation” in which Haier has joint venture with its competitors.
So that they are also partners and competitors.

Supply Chain Type:

Haier Uses Extended Supply chain model because they keep their supplier and distributor under
fold.