Whirlpool Corporation is a popular multinational home appliances producer and marketer. The company is based in the United States. This is supposed to be the leading kitchen and laundry appliance company all over the globe.
The company creates all its home appliances by using proper technology and methods so that families get their required care.
It is very important to understand the SWOT analysis of Whirlpool that helps a company to survive and flourish in the market. This will help you to know the reasons behind the constant success of the company. Through this case study we will be able to get to know about the SWOT analysis of Whirlpool along with its background. So, without wasting any more time, let’s dive in.
A Short Note on Whirlpool
The company was set up as a small business in Benton Harbor, Michigan, U.S. in 1911. The Fortune 500 company has nearly $21 billion in revenue per year. About 92,000 workers worldwide in this company. It has more than 70 manufacturing and technological development facilities all over the globe. The flagship brand of the company was at the forefront of innovation for over 100 years when the first automatic washing machine was introduced in 1948 gaining over 20 innovation awards.
Unlike each homemaker, Whirlpool also focuses on the significance of making every day count. They think that harness comes from surpassing the expectations of a person in day-to-day chores. They also think that cutting-edge technology must always give the best results.
A Brief History of the Company
Whirlpool is supposed to be one of the leading home appliance manufacturers all over the universe that is proud of its different kinds of products. The company managed to earn $19 billion in sales in 2011. There are more than 68000 employees in the company and 66 manufacturing and technology research centers.
The three brothers Louis, Frederick, and Emroy set up this company in partnership. The three brothers are most popularly known as the Upon Brothers. Their first invention was the motor-driven wringer washer. At this point, the brothers chose to join hands with another company, Sears, Roebuck, and Company in 1946.
The company has supported the water efficiency standards with the help of research and development attempts. The company has constantly worked with the U.S. Department of Energy and the U.S. Environmental Protection Agency Energy Star very closely.
A few achievements of the company are that it has become an Energy Star seven times. The company provides varieties of products under different brand names like Whirlpool, KitchenAid, Maytag, Jenn-Air, Brastemp, Amana, Cins, and Bauknecht.
What Problems Did the Company Encounter?
The most significant challenge that Whirlpool Corporation faced in the market is innovation resistance. Because of the long-term nature of innovation, customers are not interested in new products or modifications particularly because it interrupts already prevailing verified routines. Customers get habituated to a specific product and it is very difficult to convince them to shift to a distinct outfit altogether.
Innovation resistance may become because of two particular factors which are the degree of transition or discontinuity concerning the evolution, and the extent of dispute between the invention and customer confidence construction.
Another significant challenge the company faces is the problem of quality and efficiency. Electronic malfunction is the most important setback to the reputation of the company and may damage the global market share of the company. The customers raised most problems related to the response of the company to customer complaints.
Strategic Analysis
The company is mainly popular for producing basic home appliances and other products related to it. The operations of the company are run especially in America, Europe, Asia, and Latin America. The company is headquartered in Benton Harbor Michigan. The company increased its profit level by reducing the operational cost. By applying this strategy the company became very successful for many years. With this organizational culture, the has managed to gain greater success and has set a positive impact on the performance of it.
The company was committed to manufacturing products that are friendly to the environment. With this, the company gets a cutting edge and it helps to improve the reputation of the company in the multinational market.
The company uses a market-driven strategy intending to gain a competitive edge supported by its worldwide existence in most of the local markets. The market mix of the company varies from nation to nation as every locality has individual preferences as per custom, environmental and financial influence.
Operational Strategy
The corporation has the right to allocate materials associated with the production of appliances in all the production facilities. With this, the company gets a competitive and influential edge in the appliance industry as a manufacturer as well as a raw material supplier to other companies available in the market. The power of the company is its capability of locating and creating new production ideas detected through its market investigation.
This ultimately satisfies the consumers by fulfilling their requirements along with providing eco-friendly products. The company is capable enough through its resource base and organizational infrastructure to concentrate on the highly prosperous derivatives and characteristics.
SWOT Analysis of Whirlpool
With the help of a SWOT analysis, we may assess the strengths, weaknesses, opportunities, and threats of an organization. The primary aim of a SWOT analysis is to assist the companies to acquire detailed knowledge about all the factors that affect business decisions.
With this outstanding result, we may decide where the company prospers and where it sputters so that we may design countertops and determine how the company may develop. We have made a detailed SWOT analysis of Whirlpool below:
What are the Strengths of Whirlpool?
The strengths of a company are nothing but the outstanding qualities that give it a competitive edge that helps to acquire more market share, attract more consumers, and increase profitability.
- Outstanding Product Portfolio
Whirlpool is one of the most famous home appliance and consumer electronics producers that has a diverse portfolio.
The company kept washing machines, air conditioners, refrigerators, and a wide range of other products in its product line. The company has a wide range of products in its portfolio.
- Top Major Appliances Manufacturer:
We all know that Whirlpool is one of the most popular appliance producers. The company is represented mainly by the production of large and home appliances. Forbes has kept it in the 199th position among the best international companies all over the world.
- Production Advantage:
The company has set up manufacturing centers in 61 locations all over the globe. The factories are popular for their high-quality operations and high level of productivity. That is why the company is capable enough to fulfill market demand instantly for the products.
- Dominant in Washing Machines:
Whirlpool has an outstanding market for washing machines. It beats the other companies with it.
- Availability:
The company is available in the United States, Europe, the United Kingdom, the Middle East, Asia, Africa, and about 100 other nations. The outstanding presence of the company has led it to earn a huge amount of revenue.
What are the Weaknesses of Whirlpool?
The weaknesses of a company are the things that are required to be improved. The most significant weaknesses of the company are as follows:
- Total Income Stagnation:
The total revenue of the company remains static is a huge flow. The stock of the company has fluctuated for many years but the revenue of the company has been stagnant at $21 billion. This implies that the company is not growing and is losing its market share to opponents.
- Market Follower:
The company is popular for being a market follower rather than an originator as a major portion of its products are stretchings of prevailing product lines rather than anything unique.
- Absence of Differentiation:
The Consumer electronics segment is pervaded by companies that clone the product of each other and there is nothing that can be done to distinguish between them. Whirlpool lacks this kind of distinctiveness.
- Dependency:
The company greatly depends on the US market and also a few Asian regions. That is why it loses its market share to other companies in other nations making revenue scopes.
What are the Opportunities for Whirlpool?
Opportunities are the scopes where the company should bouncy its endeavours for improving results, sales, and most importantly profit. The various kinds of opportunities of Whirlpool are as follows:
- Boost the Depth of the Product Portfolio:
One of the most important possibilities for the company is to develop the depth of its product portfolio. The company will be able to sell more things to its already prevailing consumer base.
- Emerging Markets:
The company can concentrate on improving and rising markets, especially in Africa and Asia. These growing markets may help the company to establish its brand in a new location and in this way it will increase the revenue of the company.
- Introducing Small Appliances:
Whirlpool is popular for its large appliances and household appliances. But there are a lot of small appliances that are not added to the product line of the company. LG has already done this and Whirlpool may also do the same to improve its aimed consumer base and offer more products under this company.
- E-commerce:
The E-commerce industry only focuses on a new trend in online shopping. That is why the number of sales increases.
That is why a lot of people ads now doing online shopping
The company may set up online businesses for making profits.
What are the Threats to Whirlpool?
The last part of the SWOT analysis of Whirlpool is the potential threats to the company. The significant threats to the company are as follows:
- Mature Markets:
The mature markets of the company are the United States and other Asian markets. That is why it is becoming very difficult to establish a presence in these areas.
- Intense Competition:
Intense rivalry in the industry is the most significant problem for the company. That is why, the opponent companies are stealing market share from whirlpools and revenue is becoming stagnant. The competition ei not be reduced in the upcoming days. That is why the company should think of other revenue and profit-generating scopes.
- Declining Margins:
The company is facing a lot of challenges due to reducing margins as they directly endanger the expansion and survival of the company.
Conclusion
Whirlpool Corporation is committed to being the best multinational kitchen and laundry corporation that is always trying to improve the lives of people at home. The digital world is growing rapidly. So, the iconic brand folio of the company including Whirlpool, Maytag, KitchenAid, Consul, Brastemp, Bauknecht, Anana, JennAir, Yummly, and Indesit is doing intentional invention for fulfilling the constantly changing requirements of the customers. If you require any kind of help or you are not capable enough to write this case study on this topic you may feel free to approach My Assignment Writing Help.
FREQUENTLY ASKED QUESTIONS
- Why is Whirlpool so Popular?
Whirlpool Corporation is the best home appliance corporation that is polar fur selling products under innumerable varieties of brands like KitchenAid, Whirlpool, Maytag, Jenn-Air, Amana, and Consul. That is why it has become so popular.
- What is the Business Model of Whirlpool?
The company follows a cost-driven strategy to reduce expenses through important automation and low-price value propositions. Other things driving the business are marketing and administration strategy.
- What is the Tagline of Whirlpool?
The tagline of Whirlpool of everyday care.
