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Whirlpool

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by

Thomas Langsford

on 21 March 2017

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Transcript of Whirlpool

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Question
How and why was Whirlpool able to go from a position where it was “just one in the pack” to a position of being global leader in it’s industry?
The company
Founded in 1911, by Louis and Emory Upton, in the United States
Whirlpool Corporation is the largest home appliance manufacturer in the world
Overseas Expansion in 1958 to Latin America and then further expanded to Asia in ...
Whirlpool Overseas Corporation (WOC) created


Whirlpool

Increased Technological Innovation
Technology Organisation - developed advanced innovative products and move them to market quickly and competitively.

The “World Washer” - an effort to create a lightweight compact washer, parts produced in developing countries (with less advanced manufacturing technology, to reach many more households than conventional designs.

Government regulation and advances in computer software, combined with intense competition led to accelerated product innovation - need to keep up with competitors

“When we bought Phillips, the washing machines made in the italian and german facilities did not one screw in common” - standardised components are a way of reducing costs - building models on the same basic platform
Change in Customer Focus
Trends shifted with products required to be more ‘fashionable’ in the european market
Realisation that the market had become more segmented with different countries/markets requiring different functions from their products
North American business decided to adopt a “dominant consumer franchise’ strategy - increased focus on customer needs
To support their DCF strategy, Whirlpool announced new products aimed at 6 discrete appliance consumer segments labelled; the traditionalist, the housework rebel, the achiever, the self assured, the proven conservative and the homebound survivor
The need for diversification - Managers should think “global but act local - key is to get all employees in the “think global mindset”
Full transcript