Whirlpool Case Analysis

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Relationships with Additional Companies

When Whirlpool conducting business, networking is key. In an international market, even more value should be placed on building positive relationships with other companies and government officials. Relationships with international suppliers and distributors, and other companies from your country, can be an incredible resource for the company. Moreover, Whirlpool company would find that competing with foreign companies can help them be more successful in their own country by gaining new business ideas.

Faster Growth

Expanding the company internationally naturally provides opportunities for faster growth. It is clearly clarified that by competing with other opponents in business enviroment, Whirlpool company will have to focus on developing the technology continuously and keep researching the market to find something unique to rival with them. As a result, the growth rate will be accelerated faster to adapt with the business enviroment.

By following advantages aquired abroad can help management improve Whirlpool’s performance in its home market:

Firstly, the brand recognition, or brand awareness, will improve. Before, domestic consumers just consider Whirlpool a domestic producer, but now the company has become globaly, so consumers will pay more attention in our brand.

Secondly, by doing business internationally, Whirlpool company can learn some new advanced technologies from other countries to improve their own business in the domestic country, USA.

Question 3:

Whirlpool has tried to take best possible advantage of the opportunities available in the local markets to gain foothold in the immediate markets. The company has located research and development activities, production facilities in the lower cost countries like China, Mexico and Poland to take cost advantage and increase profit margin. The company has also employed the strategy of forming partnerships with the local players of overseas markets like Philips, Aspera, Kelvinator, and so on. The partnership with the local players has enabled the company to gain synergy benefits and expanding foothold in the other markets.

The company has also developed low cost version of popular models of various appliances in order to attract attention of the customers of low cost countries. Besides, subsidiaries are also being set up by the company in various countries like Bulgaria, Hungary, Romania, Russia, etc to facilitate immediate supply of products to the customers of respective countries. The appliance business of Whirlpool is regional rather than global. It is due to reason of decentralised management of the worldwide operations of the company. The decentralised management prevents the company from establishing a global integrated supply chain to gain cost advantages and minimising risk.