Whirlpool Corporation’s Global Strategy Case Analysis
Running he WHIRL ead: LPOOL’s GL LOBAL STR RATEGY CA ANAL ASE LYSIS
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Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.)
Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt:
WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS
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Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new leadership of David Whitwam encountered many problems in its early stages illustrated in a declining profitability in its home market, losses in the European market and failure in some of its joint ventures in the Asian market.1 With such poor performance and failure in achieving competitive edges in global markets, Whirlpool was at a great risk of losing huge investments made in foreign markets, and losing highly-potential market shares in emerging international markets to aggressive competitors. The paper illustrates core strategic mistakes around three main strategies; sourcing and operations, entry, and marketing strategies adopted. The goal is to address lessons learned from Whirlpool’s experience in globalization in order to shed light for future strategies or building globalization plans for small and medium enterprises aiming to have global footsteps. Keywords: Household Appliances, Globalization, Internationalization, International Management, Case Analysis, Whirlpool
WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS Whirlpool Corporation’s Global Strategy Case Analysis International Management – Assignment 2 Introduction
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The estimated $228.9 billion in the year 20092 global household appliances market can be described as a
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Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.)
Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt:
WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS
2
Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new leadership of David Whitwam encountered many problems in its early stages illustrated in a declining profitability in its home market, losses in the European market and failure in some of its joint ventures in the Asian market.1 With such poor performance and failure in achieving competitive edges in global markets, Whirlpool was at a great risk of losing huge investments made in foreign markets, and losing highly-potential market shares in emerging international markets to aggressive competitors. The paper illustrates core strategic mistakes around three main strategies; sourcing and operations, entry, and marketing strategies adopted. The goal is to address lessons learned from Whirlpool’s experience in globalization in order to shed light for future strategies or building globalization plans for small and medium enterprises aiming to have global footsteps. Keywords: Household Appliances, Globalization, Internationalization, International Management, Case Analysis, Whirlpool
WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS Whirlpool Corporation’s Global Strategy Case Analysis International Management – Assignment 2 Introduction
3
The estimated $228.9 billion in the year 20092 global household appliances market can be described as a