Preview

Whirlpool in China

Good Essays
Open Document
Open Document
672 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Whirlpool in China
Whirlpool in China

In 2006 whirlpool became the largest home appliance maker in the world. This was not an easy feat. The appliance industry is highly competitive industry with price wars being a driving factor for competition. Whirlpool’s philosophy focused on customer loyalty. Its products were built to be reliable with long lifecycles, which meant substantial emphasis had to be paid to product quality. Whirlpools philosophy is particularly difficult as it needs to not only to make high quality appliances, but it needs to do so efficiently to stay ahead of the competition.
The primary focus of the article is on china, China had become the largest household electrical market in Asia Pacific area at the time. Further, China stood out as one of the largest household appliance makers in the world, also boasting a large market share. In 1995 Whirlpool had entered the Chinese, however quickly withdrew due to its unfamiliarity with and unclear positioning in the Chinese market; this was however prior to China jointing the World Trade Organization. China’s entrance into the WTO resulted in freer access to China’s market, this greatly improved conditions for Whirlpool.
By 2011 the Whirlpool brand was regarded as a high-quality product by Chinese consumers and Whirlpool even relocated its Asian headquarters to Shanghai. Whirlpools multinational experience helped it become a player in the Chinese market. Due to many factors (transportation delays, lack of technology and capacity of foreign resources, cultural and language differences, quality assurance, political and economic stability, and proper inventory management systems) Whirlpool set up it procurement office in Shaingai. Procurement was done in china for a variety of reasons, but mainly lower associated cost.
Being a supplier for Whirlpool was not easy, Whirlpool’s standards were extremely high, The Whirlpool Supplier Quality System was developed based on the ISO 9001. The household appliance industry was

You May Also Find These Documents Helpful

  • Powerful Essays

    China plant location. The summary will be the basis for a systems plan for more effective…

    • 2729 Words
    • 11 Pages
    Powerful Essays
  • Better Essays

    Bus499Assignment 3

    • 1044 Words
    • 5 Pages

    I see Whirlpool as being a profitable candidate for a corporation to acquire or merge with because they are a household name. Whirlpool has produced great appliances since 1908 and based on the vision of one family and a business failure. Louis Upton invested his venture to manufacture household equipment. (Whirlpool Responsibility Overview) So Whirlpool would be a profitable target because of its longevity and determination to excel its business…

    • 1044 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Whirlpool Corporation is a global manufacturer and marketer of major home appliances, with annual sales of more than $18 billion, more than 73,000 employees, and nearly 70 manufacturing and technology research centers around the world. The company's family of brands, including Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht, Consul and other major brand names to consumers in more than 170 countries. Whirlpool Corporation is traded on the New York Stock Exchange (NYSE) under the symbol WHR.…

    • 696 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Whirlpool's global and North American headquarters are in Benton Harbor, Michigan. In the U.S., Whirlpool has manufacturing facilities in Fort Smith, Arkansas; Evansville, Indiana; Iowa (Newton and Amana); Tulsa, Oklahoma; Ohio (Clyde, Findlay, Greenville and Marion); and Cleveland, Tennessee.…

    • 1675 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    There are big time players in every industry that people link with the market. Fast food is McDonalds. Coffee shops Starbucks. Carbonated beverages are Coca-Cola. Who is the comparable brand name in the home appliance field? A betting man would have a safe bet if he wagered that Whirlpool was that company. Whirlpool Corporation is the world’s leader in manufacturing major home appliances. With sales in the billions, over 68,000 employees and 66 manufacturing and technology centers around the world, Whirlpool is not only a goliath in their own market but has cemented itself as one of the best preforming firms in the world. What does Whirlpool do that makes them so successful? It is not just the product and service they produce. Whirlpool studies and is ever vigilant to any external threats and, maybe even more importantly, all internal problems that arise as well. They know there market, competitors and themselves so well that they will be an industry leader for years to come.…

    • 4201 Words
    • 13 Pages
    Better Essays
  • Better Essays

    Whirlpool Europe

    • 2550 Words
    • 11 Pages

    3. Control the use of that capacity. This involves the allocation of people, equipment and other resources to the various work tasks to ensure the smooth running of the operation in the short term.…

    • 2550 Words
    • 11 Pages
    Better Essays
  • Powerful Essays

    Whirlpool is worldwide leader in the home appliances industry, with a 13% share of Europe’s market. Whirlpool Europe manufactured products based on sales budgets or forecasts and then held them as finished goods inventory. Whirlpool Europe operations were carried through a discrete/disparate stand alone systems, localized to meet individual plant, distribution centers, or sales offices business process. In essence Whirlpool was not operating on global common business processes, with transparent flow of information across business units which was often inconsistent, irreconcilable and required redundant work to achieve goals.…

    • 1285 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Electrolux

    • 619 Words
    • 3 Pages

    In competitive business environment of today and the complex function-needs for goods, product variety is becoming more important. Electrolux AB operates as the largest appliance manufacturer in the world with customers in more than 150 countries. The company manufactures a variety of household appliances including refrigerators, washing machines, dishwashers, ovens, vacuum cleaners. Electrolux's brand arsenal includes its namesake, along with Eureka, AEG, Frigidaire, and Kelvinator, among others. In 2001, the firm held the leading market position in North America, Europe, Latin America, and Australia.…

    • 619 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Whirlpool Case

    • 1271 Words
    • 6 Pages

    David Whitwam was CEO in Whirlpool in the year 1993, and he bet for globalization. Whitwam easily noticed that a great number of Whirlpool’s revenues were coming from the overseas. He aimed first at Europe, and invested $1 billion in the continent, later on the company ranked at the third position. Though, even with this success, Whitwam wanted more; he invested another 2 billion, but this time results were not what he expected. He wanted to grow in countries like Japan, Asia and Latin America, but with the wrong results, counselors weren’t sure about his vision.…

    • 1271 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Galanz

    • 1093 Words
    • 3 Pages

    Considering the development of Chinese economy, Galanz decided to introduce microwave oven into Chinese market from 1991. At the beginning, Galanz had to import equipment and technology from overseas, because they lacked of associated technology and technical expertise at home (p436). Compare with the high price of foreign brands, Galanz chose to set the low price to gain the market share with western courtiers’ competitors. They controlled the cost lower than their competitors, because they had “an abundant supply of cheap labor and land” (p436).…

    • 1093 Words
    • 3 Pages
    Good Essays
  • Good Essays

    I previously worked for the home appliance industry Whirlpool Corporation for about six years. The corporate office of Whirlpool is in Benton Harbor, Michigan in the United States. Whirlpool transformed itself from a regional manufacturing and trade-focused business into a global enterprise, with more than 80,000 employees and over 60 manufacturing and technology research centers worldwide. In 2006, Whirlpool made an aggressive move to strengthen its increasingly competitive global home-appliance industry by acquiring the Maytag Corporation for $2.7 billion. This move made Whirlpool the world's leading manufacturer and marketer of major home appliances, with annual sales of approximately $20 billion. However, Whirlpool is facing significant economic challenges. The US and Europe home appliance market have reached saturated penetration rates. Their population growth has been on a decline that means that the scope of future growth in these regions is limited. The burst of the bubble in the housing market in the United States and the global recession in 2008 significantly reduced the demand for home appliances. Whirlpool realized that in order to sustain growth, it needed to target areas of high population growth rates, which included the rapidly expanding economies and income of Asia and Latin America. Back in mid-1990, Whirlpool established a global presence into these emerging markets through significant financial investments and joint ventures. Unfortunately, the business people of…

    • 1473 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Abstract: As everyone know that no country can avoid to participate the globalization. China has always been trying to follow the trend of globalization, to be part of it, and actively join in it since its opening to the world in 1978. After 23 years in 2001, of hard efforts have been made by lots of people and tremendous negotiations have been undergone for such a long time, China finally got access to the WTO, which marks the most important step of China towards deepening the integration of the Chinese economy into the world economy and therefore going more deeply into the globalization. We should admit that the opportunities and challenges were brought to China by globalization during these years.…

    • 1869 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Gome Case Study Anaylsis

    • 1348 Words
    • 6 Pages

    China’s electrical appliances industry had developed rapidly during the 1980s but lately had experienced a phase of slow growth in the 1990s. The market had also changed from a seller market to a buyer market. In 1999, the gross value of the China’s home appliance production had exceeded RMB 150 billion, with the number of domestic enterprises reaching 2,675. Also demand in the big cities was approaching saturation; though rural market had great potential, it was not well developed. This led to fierce competition among the home appliance enterprises leading to price wars. As a result, the entire industry entered a phase of low profit margin.…

    • 1348 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Electrolux: a Case Study

    • 912 Words
    • 4 Pages

    They also change the way of people thinking that kitchen and home appliances are just a practical place into an emotional place. It is proven by the vanishing of the walls between the kitchen, dining room, and living room in Most American house today. In fact, most of the home appliance markets aresaturated; the consumers are looking for more sophisticated appliances, better design appliances. Therefore, these becomethe background and mission for Electrolux to develop new concepts and sophisticated products that can be distributed to the every target consumers. (Electrolux Course Content Video).…

    • 912 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    The market’s sophistication started rising in the 1990s and there was a growing opportunity in the price-performance gap between expensive automatics and laborious semi-automatics. In 1995, Whirlpool gained a majority control of TVS Whirlpool, which was then renamed Whirlpool Washing Machines Ltd (WMML). Meanwhile, the parent bought Kelvinator of India, and merged the refrigerator business in 1996…

    • 1700 Words
    • 6 Pages
    Powerful Essays