Essay on Whirlpool

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Whirlpool The world is experiencing a third wave in the economy and many changes are taking place. One of these changes is the growing corporation that decides to go global. Most U.S. companies, both large and small, are rapidly acknowledging the necessity of global marketing. The demand for foreign products in the fast-growing economies of Europe, South America, Asia, and Pacific Rim nations offer one example of the benefits of global thinking. One company that has adapted to this new economy by globalizing has been Whirlpool. In 1989, Whirlpool Corporation embarked on an ambitious global expansion with the objective of becoming the world market leader in home appliances. However, by the mid-1990s, serious problems had…show more content…
To What extent is the appliance market regional rather than global? During the last half of the twentieth century, many barriers to international trade fell and a wave of firms began pursuing global strategies to gain a competitive advantage. However, some industries benefit more from globalization than do others, and some nations have a comparative advantage over other nations in certain industries. To create a successful global strategy, companies first must understand the nature of global industries and the dynamics of global competition. The furniture industry is an example of an industry that did not lend itself to globalization before the 1960's. Because furniture has a high bulk compared to its value and because furniture is easily damaged in shipping, transport costs traditionally were high. Government trade barriers also were unfavorable. The Swedish furniture company IKEA pioneered a move towards globalization in the furniture industry. IKEA's furniture was unassembled and therefore could be shipped more economically. The company also lowered costs by involving the customer; the customer carried the furniture home and assembled it himself (Babyak, 1995). The differences between regional and global market concept in the appliance industry certainly play a big part. In the regional market, products are customized for each market, and local-decision-making puts enormous impact on companies. Product differentiation, local responsiveness,
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