Whirpool Strategy

Anquista Marchand

October 4, 2011

IBUS 1354 Tues/Thurs

Homework #2 Whirpool

1. Whirpool strategy has reduced the number of suppliers by 40 percent. Over the past few years, Whirpool invested hundreds of millions of dollars in new product development. Marketing new clothes dryers designed to operate more effeciently and provide higher quality despite containing fewer parts.

Market research search for new products that address the specific needs developing markets.

2. Focus groups research indicates that consumers would find a smaller capacity washer, accecptable because low income families do laundry more often.

It allows the machine to go from wash to cycle to spin without shifting gears.

3. Whirpool relies heavily on market research to maintain its leadership in the United States; listening to consumers is important in Europe, and Latin America as well.

Research has also indicated that consumers in different countries prefer different types of features. Thus, Whirpool has begun emphasizing product platforms as a means to produce localized versions of ovens, refridgerators, and other appliancelines more economically.

Market research drives the search for new products that address the specific needs of developing markets. In Brazil, for example, Whirpool's market entry strategy included acquiring two local estabished appliance brands, Brastemp and Consul.

4. Overall in China washer sales totaled 16.5 million units in 2005; Whirpool expects that number to reach 22.2 million by 2011. Emerging markets must be pursuaded to to move beyond washing machines to purchase some other company's appliance.