Whirlpool Case study

Running Head : WHIRLPOOL Situation Analysis

Whirlpool 's success as the number two appliance company in the world is due to its strategy of offering products in three alternative price categories - top-of-the-line , medium price , and low end . This strategy has allowed it to expand out of the mature domestic U .S . market (growing at a rate of 2 - 3 per annum , where it is the number one appliance company , into foreign markets , while its early start into Latin America from 1957 has allowed it to become one of the market share leaders in

that region today

The company expanded into the European market by taking over Philips Electronics ' European appliance business , putting it in number 3 place in the region , while Electrolux enjoys the number 1 spot . Sales volumes however , in the region were growing at lower than the domestic rate because of over capacity from low cost producers . But by focusing on its 3 price strategy the company was able to target the different segments of the region as identified by their market research

Market research also showed them that different customers in different countries prefer different features , for example , for Brazil the company had to establish a new washer (Ideale ) that was inexpensive , yet looked expensive so that it may target the country 's 30 million households with monthly incomes below that of the low-end washers who considered owning a washer as a status symbol . To lower costs of production product platforms were designed by Whirlpool to which country-specific...