Whirlpool Domestic, International Business and Its Environment

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lower cost, Whirlpool is able to compete domestically in term of price. In addition, existing products can be sold domestically or internationally if either market is weak in demand. In other words, it is easy for Whirlpool to sell their products and empty their inventory.

3. What actions has Whirlpool management taken to ensure that the firm succeeds in local markets throughout the world? To what extent is the appliance business local/regional rather than global?

For Whirlpool to succeed in local markets, many actions have been taken. Whirlpool has acquired companies from different local markets such as Philips in Europe, Kelvinator in India. Aspera in Italy. A joint venture was formed in China to produce air conditioners. This strategy has enabled Whirlpool to have better synergy with local firms and grow a decent footing in these markets. Whirlpool takes the advantage of low-cost market like China through locating production, services and R&D plants there.

Whirlpool also makes sure their operation in local markets is well-managed and supervised by establishing production development center and a corporate headquarter in Shanghai. Regional offices are formed in New Delhi, Singapore and Hong Kong. In Russia, Hungary, Slovakia and so on, Whirlpool sets up subsidiaries to provide their products and service in an instance.

Whirlpool tries to adapt to local market preference and condition by creating different product to meet One example is that Whirlpool develops cheaper versions of their products in order to target consumers in low-income market like China and Latin America.

Whirlpool’s business rather focuses on regional strategy rather than global strategy. The company focuses on adapting to particular consumers’ need and local markets. Whirlpool emphasizes on local presence and has the decentralized management approach.