Study on modular product development and market oriented management —A case study of Haier Group

This paper discusses the process through which the product development strategy of Chinese enterprise finds an appropriate organizational structure. This paper examines the above process using product development management at Haier as a case. Haier has introduced both the modular product architecture and market oriented management. Modular product architecture helps the company develop new products with low cost and limited differentiation at a fast speed. Market oriented management urges R&D employees to take into account market demand factors when initiating a new project. The two approaches, are the key attributes for promoting the mutual matching between new product strategy and its organizational structure, and also are the sources of competitive advantages of Chinese enterprises.