Whirlpool Corporation’s Global Strategy Case Analysis

6192 Words Feb 20th, 2012 25 Pages
Running he WHIRL ead: LPOOL’s GL LOBAL STR RATEGY CA ANAL ASE LYSIS

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Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.)

Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt:

WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS

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Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new
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Many European manufacturers are shifting to lower-wedge countries to produce in order to save cost.9 In terms of competition and consolidation, Europe was moving towards an oligopolistic scene in the mid 1990s. Appliances market by unit was dominated by less than a handful of main manufacturers; Electrolux (22.5 percent), Bosch-Siemens (15 percent), Whirlpool (14 percent) in the year 1994.10 Mentioning few integration examples; Electrolux acquired White of the US, and Zanussi of Italy, Maytag acquired Chicago of the US, General Electric formed a joint venture with GEC of the UK which is the owner of the brand Hotpoint.11 The new ambitious Korean entrants were adding to the tough competition and dominated the microwave ovens category,12 Unlike the American market, European appliances market is highly regionalized with diversified preferences across countries.13 In Asia; the Asian financial crises occurred in the year 1997 affected most Asian economies with a downturn of consumer demand and trust in the area.14 Whirlpool’s competitors were also not far from this challenge. General Electric for example reported challenges in its Asian market due to currency exchange and interest rates in the region in its 1997 annual report.15 The world’s second largest and fastest growing home appliances market

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