Chinese firm Haier has evolved its business model significantly under CEO Zhang Ruimin by transforming from a traditional hierarchical company into a platform of self-managed micro-enterprises. These smaller units, called ZZJYTs (independent operating units), focus intensely on customer needs and directly connect marketing, design, and manufacturing functions.
Haier actively encourages innovation and entrepreneurship within these units, allowing them autonomy to adapt products and services to niche markets—for example, creating washing machines for rural users or mini-refrigerators for college dorms. This decentralized, market-responsive structure fosters rapid iteration and continuous exploration of new niches, enabling Haier to stay closely aligned with changing consumer demands in China and abroad. The model embraces gradual change driven by frontline teams rather than top-down orders, reflecting a culture of harmony and incremental adaptation