Subject category:
Entrepreneurship
Published by:
London Business School
Version: July 2020
Length: 17 pages
Data source: Field research
Abstract
This is part of a case series. The Haier case series consists of three cases which build on each other. They can be used in tandem or separately, each covering slightly different, if complementary, topics. The second case (B) focuses on the challenges of shifting from a 'product' company to a 'solutions' company and can thus be used in looking at how to alter organisation design to facilitate such a strategic change. Case (A) does not have to precede (B) if time is tight; alternatively, it may be assigned as background material. Case (B) has a clear focus and looks at how Haier tried to shift to a 'service' approach and how it tried to both embed itself into, and generate, business ecosystems around its products. Its utility lies in taking the concept of 'business ecosystem' and both illustrating what this is (ie, 'What are the concrete examples of an ecosystem in consumer electronics?') and showing how a firm must change its organisational structure to be able to compete in such a world (ie, 'Should I manage this ecosystem engagement in a centralised or decentralised fashion?'). The case has some information about other competitors and ends just before the formal introduction of the 'Ecosystem Micro-enterprise Community' (EMC) concept, which was Haier's approach to resolving the issue. Case (B) is a valuable addition to a course where business ecosystems are discussed and offers a rare and detailed glimpse of the organisational challenges this entails.
About
Abstract
This is part of a case series. The Haier case series consists of three cases which build on each other. They can be used in tandem or separately, each covering slightly different, if complementary, topics. The second case (B) focuses on the challenges of shifting from a 'product' company to a 'solutions' company and can thus be used in looking at how to alter organisation design to facilitate such a strategic change. Case (A) does not have to precede (B) if time is tight; alternatively, it may be assigned as background material. Case (B) has a clear focus and looks at how Haier tried to shift to a 'service' approach and how it tried to both embed itself into, and generate, business ecosystems around its products. Its utility lies in taking the concept of 'business ecosystem' and both illustrating what this is (ie, 'What are the concrete examples of an ecosystem in consumer electronics?') and showing how a firm must change its organisational structure to be able to compete in such a world (ie, 'Should I manage this ecosystem engagement in a centralised or decentralised fashion?'). The case has some information about other competitors and ends just before the formal introduction of the 'Ecosystem Micro-enterprise Community' (EMC) concept, which was Haier's approach to resolving the issue. Case (B) is a valuable addition to a course where business ecosystems are discussed and offers a rare and detailed glimpse of the organisational challenges this entails.