Whirlpool History

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Whirlpool History

Whirlpool is a company that has been around for 100 years. They are best known for their household appliances including washer/dryer and dishwashers. Corporations such as Whirlpool would not be able to make it without being able to analyze positive and negative aspects that help them either penetrate a market or continue in a current market. The aspects analyzed would be items out of there control. At the basic level, these items would include opportunities and threats. Opportunities would consist of being able to determine what there corporation could take advantage of as far as gaining an advantage. An opportunity analysis would help determine what type of compliment products they could explore in order to gain an advantage in there market. Threats would be items that would cause them to be bumped out the market such as competition and the economy. In order to be able to assess these items we will need a little background information on Whirlpool.

As mentioned before Whirlpool is an older company over 100 years old. Louis Upton had a vision a few years before he went into business with his family. Lou “invested his savings in a venture to manufacture household equipment. When that company failed to materialize, Upton was offered the opportunity to select something of value from the failed venture as a return on his investment. He chose the patents on a hand washing machine that he thought might be electrified.” And In 1911 he went into business with his uncle Emory and combined with both of there ideas and hard work they hit the ground running.

Since people like to hear the bad news first I will begin by talking about the threats for Whirlpool Corporation. Most people may mention companies such as LG, and Samsung which are growing in the American Marketing and are trying to expand globally such did Whirlpool. I’m going to venture the opposite way and introduce a company that started international and is now becoming a sneaky competitor in the American market. This company is Haier Group. Founded in 1984, Haier had been founded as Qingdao Refrigerator Co. in 1984. With China opening up to world markets, foreign corporations began searching for partnerships in China. “One of these, Germany's Liebherr Group entered into a joint-venture contract with Qingdao Refrigerator Co., offering technology and equipment to its Chinese counterpart. Refrigerators were to be manufactured under the name of Qindao-Liebher.” With this Haier took off as a company and was able to focus on international expansion. In 1994 they officially changed there name to Haier Group to make the name easier after they kept there partnership with Liebher Group for over a decade. And they didn’t stop at just home appliances. Towards the mid-late 1990’s they began investing into mobile phones and computers figuring that there could be room for growth in these fields. They could not have been more right, by the early 2000’s they had seen a captured a dominant market share in its core white goods division. These numbers were only reflective of the business they had done in parts of Europe and Asia. In 2002 they had finally followed on a plan that would allow them to expand into North American Markets. This now put them in direct competition with companies such as Maytag, GE, and Whirlpool. Haier was able to make an impact on North American markets because they were able to offer a quality product for a relatively lower price than its North American competitors which allowed them to affect the market in America as well as compete with a first mover such as Whirlpool. Once they infiltrated North America, they were able to expand there production facilities to many different countries including Pakistan and Jordan as well as Nigeria, Egypt, and South Africa Just to name a few. With this company being less than 30 years old and the impact they are having in international markets selling almost identical appliances and...
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