Summary Whirlpool Coporation's Global Strategy

Topics: Whirlpool Corporation, Washing machine, Major appliance Pages: 12 (4254 words) Published: September 16, 2011
Summary Whirlpool Coporation's Global Strategy
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Summary Whirlpool Coporation's Global Strategy
7 Summary Whirlpool Coporation’s Global Strategy

Introduction case
1989 Ambitious global expansion emerged:
• Objective: becoming the world market leader in home appliances. • Purchase of a majority stake in an appliance company owned by Philips. • Purchased a majority stake in an Indian firm.
• Established four joint ventures in China.
• Made new investments in its Latin America operations.

1990 Serious problems emerged in the international operations: • 1995 European profit fell by 50 percent.
• 1996 Reported $13 million loss in Europe.
• 1996 Whirlpool lost $70 million in Asia.
• 1997 Lost $62 million in Asia.
• 1997/1998 Victim of spiraling interest rates in Brazil.
• 1998 Appliance sales in Brazil plummeted by 25%.
• 1999 Third straight year of declining sales in Brazil.

1997 In response to these problems, Whirlpool began a global restructuring effort: • Announced that it would cut 10 percent of its global workforce over the next two years. • Pulled

Statistics:
Public Company
Incorporated: 1929 as Nineteen Hundred Corporation
Employees: 68,272
Sales: $11.02 billion (2002)
Stock Exchanges: New York Chicago
Ticker Symbol: WHR
NAIC: 333415 Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing; 335211 Electric Housewares and Household Fan Manufacturing; 335221 Household Cooking Appliance Manufacturing; 335222 Household Refrigerator and Home Freezer Manufacturing; 335224 Household Laundry Equipment Manufacturing; 335228 Other Major Household Appliance Manufacturing

Company Perspectives:
At Whirlpool, we believe that innovative thinking comes from anyone and anywhere within our company. That's why, in 1999, we launched a worldwide effort to instill innovation as a core competency throughout our organization. Since then, Whirlpool people worldwide have participated in and contributed to innovation-related activities that have resulted in new ideas, products and services that deliver real value to our consumers in ways never before seen in either our company or our industry. Innovation is Whirlpool Corporation's differentiating strategy, one we believe provides us with a significant competitive advantage. Innovation also brings us closer to our consumers and enables us to meet their unmet needs.

Key Dates:
1911: Lou Upton and his uncle, Emory Upton, found Upton Machine Company in St. Joseph, Michigan, to begin producing electric wringer washers. 1916: Upton begins making washers for Sears, Roebuck and Co., which markets them under the Allen trade name. 1929: Manufacturing capacity is increased through a merger with the Nineteen Hundred Washer Company of Binghamton, New York, forming Nineteen Hundred Corporation. 1947: Company introduces the first automatic, spinner-type washer under Sears' Kenmore brand. 1948: Sale of Whirlpool brand washers begins.

1950: Company adds automatic dryers to its product line and changes its name to Whirlpool Corporation. 1955: Whirlpool gains line of refrigerators via merger with Seeger Refrigerator Company and changes its name to Whirlpool-Seeger Corporation; company acquires air conditioner and cooking range lines of Radio Corporation of America (RCA), which are marketed under the RCA-Whirlpool name until the mid-1960s. 1957: Company changes its name back to Whirlpool Corporation. 1958: In its first move outside the United States, Whirlpool buys a stake in Brasmotor S.A., a major Brazilian appliance maker. 1969: Whirlpool takes a 33 percent stake in John Inglis Co. Ltd., entering the Canadian home appliance market. 1986: Company acquires the KitchenAid division of Hobart Corporation. 1989: Whirlpool secures the rights to the Roper brand name; it joins with the Dutch company N.V. Philips to establish Whirlpool Europe...
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