Whirlpool Internal and External Analysis

Topics: Major appliance, Whirlpool Corporation, Electrolux Pages: 17 (4201 words) Published: May 5, 2014



Who/What is Whirlpool 3
Analysis of Whirlpool 4
PESTEL Framework 4
The SCP Model 9
The Five Forces Model 10
The Resource Based View 13
The VRIO Framework 14
Conclusion 16
Bibliography 17

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.

Whirlpool was not always a superpower. They did not pop out of some hole in the ground and proclaim “Hey! We have washers and dryers want one?” Whirlpool’s origin story is not what one would call textbook. Through humbling business failure and the vision of one family Lou Upton invested his savings in a dream. In 1908 he set the groundwork for a company that would manufacture household equipment. That ventured went belly up. From the ashes of that failed company, Lou was able to walk away with something. He was able to attain the patents on a hand washing machine that he thought might be electrified. That small win turned into, after a lot of years and work, into the Whirlpool Corporation we knew to this day.

As stated before Whirlpool is the best at what they do. However, throughout history there have been companies that have been good if not great. There have been some in that group that no longer are here. Those ones that failed got cocky. They did not keep their eyes on their competitors or stay vigilant on what was happening within their own company. Whirlpool, to stay on top, needs to be constantly analyzing those two fields (external and internal areas) to make sure weaknesses are naturalized then eliminated and strengths are being utilized.

There are many different ways to analyze Whirlpool externally and internally. External analysis includes utilizing PESTEL framework, the 5 forces Model and SCP (Structure-Conduct Performance). The internal analysis tools that are effective are the RBV (Resource-Based) view, the VRIO model and a SWOT analysis. PESTEL FRAMEWORK

The PESTEL Framework is a tool used by managers to view their external environment. PESTEL is an acronym for political, economic, socio-culture, technological, ecological and legal. All of these factors, if left unchecked, can lead to major issues for any corporation in the world.

Whirlpool is a complex entity even though they sell straightforward products (major home appliances). Linking a washer, dryer or fridge to being affected by legal action does not seem, at first glance, make a lot of sense. People think of politics normally coming into play in the auto market, trade agreements and other major economic areas in the U.S.A. However there are a lot of potential political problem that could lead to Whirlpool having to readjust and adapt its strategies.


Bibliography: "Whirlpool Corporation." - History. N.p., n.d. Web. 14 Feb. 2014. .
"Federal Policy and Legislation." Government of Canada, Environment Canada. N.p., n.d. Web. 17 Feb. 2014. .
The Economist. The Economist Newspaper, n.d. Web. 17 Feb. 2014. .
The Wall Street Journal. Dow Jones & Company, n.d. Web. 17 Feb. 2014. .
"Whirlpool Corporation Common St Stock Chart | WHR Interactive Chart - Yahoo! Finance." Whirlpool Corporation Common St Stock Chart | WHR Interactive Chart - Yahoo! Finance. N.p., n.d. Web. 17 Feb. 2014. .
"Whirlpool Corporation." - Green Kitchen. N.p., n.d. Web. 17 Feb. 2014. .
"Whirlpool Corporation." - U.S. Political Contributions, Disclosure and Trade Associations. N.p., n.d. Web. 14 Feb. 2014. .
"Whirlpool Corporation." - U.S. Political Contributions, Disclosure and Trade Associations. N.p., n.d. Web. 14 Feb. 2014. .
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