In March 2022, Rodrigo Ventre, CEO of EPPO, a Brazilian waste management company, faced a leadership dilemma. The Covid-19 pandemic had left EPPO struggling financially and contracts were underperforming. He believed layoffs were inevitable.

This case describes the recent evolution of Haier’s radically decentralized, market-based organizing model, Rendanheyi, and explores how its evolution supports Haier’s strategy of creating a platform ecosystem of interconnected products and services that adapts ‘intelligently’ to users’ needs.