Whirpool : A Case Study

274 Words2 Pages
Whirpool : A Case Study swot analysis: Strengths • Whitwam’s eleven years as CEO of Whirlpool helped it become the largest appliance maker in the world by improving its cost & quality levels. • First company to introduce top loading automatic washer. • Economies of scale in manufacturing and distribution. • Experts in driving channel sales. • Good HR policies, work culture and values in the organization. Weakness • Whirlpool is in an industry which require constant innovations that are sometimes hard to come by. • It tied up with Sears, the largest retailer of white goods to produce goods for them, only to be sold under Sears’ private brand label Kenmore. • Consumers generally did not associate a brand name of the parent company if the two weren’t the same. • Whirlpool failed to capitalize on its Dominant Consumer Franchise initiative which added special features to existing products. It failed due to cost & service issues. Opportunities • Better placed for innovation • In the 1950’s, Whirpool merged with Seeger refrigeration company and bought RCA’s air conditioner & cooking range business. This enabled Whirlpool to compete better with GE. • By 1980’s, Whirlpool became the second largest white goods maker in the US after acquiring Kitchen Aid. • In 1991, Whirlpool acquired Philips’ European appliance business to become Worlds second largest white goods manufacturer. Threats • Threat of cheap goods from other countries especially, Japan. • Patents on innovation are short lived. • Other companies looking to acquire Whirpool for consolidating the industry. • Falling margins with increasing competition. • Longer lifespan of products slowing “replacement demand”. Recommendations • Stay focused on consumer needs. • Create new markets & tie-ups to increase sales & revenues. • Look at acquiring companies that pose

More about Whirpool : A Case Study

Open Document