06国贸1班
 欧阳彩云 邱小敏 莫亚 吴诗瑶 张其燕

‘’’’

1）To what extent is the appliance market regional rather than
global?（欧阳彩云 3206004354）
2）What seem to be the key success factors in the appliance
business?（邱小敏 3206004355）
3）Are Whirlpool‘s difficulties with its global strategy due to
internal factors or to external factors beyond its control?（莫亚
3206004353）
4）To what extent does Whirlpool’s experience suggest that
globalization is not a good idea in the appliance business?
Explain fully。（吴诗瑶 3206004356）
5）To what extent should Whirlpool adapt its global strategy?
(You may
want to （进入） Whirlpool’s website and annual
reports to see how the company has fared recently and whether
its international commitment remains strong.)—— (张其燕
3206004357)
 1）To
what extent is the appliance
market regional rather than global?
欧阳彩云 3206004354
Global is, simply speaking, a
corporation whose profit and market
both come from all over the word.
Global corporation always have a very
clearly orientation in one or several
international commodities. Similar but
different advertisements will be seen
everywhere to disseminate the
commodities. They should vary
according to different cultures, but at
the time, they must belong to the same
system.
◆ When a company start global corporate, its
global extent strengthen and regional extent is
opposite. Thereby, this is not always good.
◆ For a company, to be globalization, must be
strictly successful at its birth place and realize
what strengths it possesses. International talent is
another important factor that a company may
meet while going to globalization.
◆ If a company has solved these problems,
globalization may take big profit for him. On the
contrary, regional may be the best choice for him.
What seem to be the key success
factors in the appliance business?
邱小敏 3206004355

1 Leading brands
Customer satisfaction, brand image and market niche as
the main access road, with the brand to other companies
to form the barriers to entry, is a "market-oriented," the
main form of business.

2 Cost leadership
Set up to enhance the productivity and production
velocity (Time to Volume) niche-oriented, or
economies of scale in order to shorten the
manufacturing process, quality control as the
main niche and take advantage of the cost to the
formation of barriers to entry, is a "production
Oriented "or" cost-oriented "business-oriented
patterns.
3 Pluralism
To create for different forms of industrial technology,
markets or production of comprehensive benefits, and to
achieve the scale of the expansion, is a kind of "capital
operation-oriented" business patterns.
4 And single-minded
Focus on a product or a particular industry segments
in the field of business is, in essence, a "capitaloriented operation," the operating patterns.
Are Whirlpool's difficulties with its global
strategy due to internal factors or to
external factors beyond its control?
莫亚3206004353
I think Whirlpool's difficulties with its global
strategy are due to both internal factors and
external factors beyond its control, but maybe
the internal factor affect it most.

1、 “it is not only important to recognize new
market opportunities, but to also recognize that
needs change even among those consumers in
mature, replacement markets. Shifting
demands driven by all aspects of our society
are an opportunity for us to deliver different
value to consumers,” Whirlpool's president
said. According to these words from Henry O.
Marcy, we can know the internal factors
•. 2、 innovating in itself is a challenge because it
requires investment in R&D. Of course, increased
investment is difficult when the cost of manufacturing
in regions like the U.S. is so high. Pulling out some
more useful facts, Some study revealed that external
overhead costs experienced by U.S. producers add at
least 22.4 percent to unit labor costs compared to U.S.
trading partners. Another challenge is that as today's
manufacturers try to branch out to other markets,
certain international barriers make it hard to compete.
U.S. manufacturers of hair clippers, for example, can't
sell their products to China without paying a 40percent import tariff, while the U.S. tariff on the same
product is only 4 percent, he said. Also, European
advocates are pushing to ban the use of Huffs, which
discriminate against American-style refrigerator
designs that heavily rely on the refrigerant.
While challenges certainly exist in today's competitive
landscape—whether on a global scale or at the local
retail level—Mr. McGuire concluded that it all comes
back to innovation and differentiation.
To what extent does Whirlpool’s
experience suggest that globalization
is not a good idea in the appliance
吴诗瑶 3206004356
business?
One
company that has adapted to the new economy and changes
brought by globalizing has been Whirlpool. In 1989, Whirlpool
Corporation embarked on an ambitious global expansion with the
objective of becoming the world market leader in home appliances.
However, by the mid-1990s, serious problems had emerged in the
company's international operations.
Whirlpool has faced many difficulties even crisis in its globalization.
Having searched the information of the development history of the
enterprise, I listed some essential points for the reasons:
※1. Fragmented distribution network in Europe.
※2. Different consumer needs and preferences.
※3. High costs due to tailored products in Europe and Asia.
※4. The innovation from the local R&D groups resulted in products
that were R&D driven instead of market driven.
★I have collected some examples by scanning books of Whirlpool. For
example, in Europe refrigerators tend to be smaller than in the U.S.,
have only one outside door, and have standard sizes so they can be
built into the kitchen cabinet. But In Japan, refrigerators tend to have
several doors in order to keep different compartments at different
temperatures and to isolate odors. Also, because houses are smaller in
Japan, consumers desire quieter appliances.
★As a result of failure in globalization in 1995, Whirlpool's European profit fell
by 50% and in 1996, the company reported a $13 million loss in Europe. In Asia,
the situation was even worse. Although the region accounted for only 6% of
corporate sales, Whirlpool lost $70 million in Asia in 1998 and $62 million in
1997. In Brazil, Whirlpool found itself a victim in 1997, and again in 1998, of
sky-rocked interest rates. Despite the company conduct investments of
hundreds of dollars throughout the 1990s to modernize operations there,
appliance sales in Brazil plummeted by 25% in 1998.
★I strongly believe that Whirlpool had extremely difficult experiences in
globalizing their market because the company did not meet the customer
preferences. The European market consisted of more than 320 million
consumers whose preferences varied by country and by region. For
instance, Swedes preferred galvanized washing machines to withstand the
damp salty air. The French liked to cook on gas at high temperatures,
splattering grease on cooking surfaces, and so preferred self-cleaning
ovens, while the Germans liked to cook on electric stoves at lower
temperatures and did not need such features.
★Thus I consider that all these external factors put numerous pressures on
Whirlpool. In addition, other external factors- intensified competition in
Europe, Mexico’s peso devaluation crisis, unprecedented raw materials cost
increases- did not help to improve the situation either.
★The internal factors, such as manufacturing inefficiencies, start-up costs
associated with production of a redesigned mid-size refrigerator and
restructuring of the pan-European sales forces, also created many
complexity for the company.
★I have heard some experts have said that few companies or industries lend
themselves to "naive" global strategies. All require some degree of adaptation
to regional and national conditions. The international strategy agenda has
over-emphasized standardization. Greater clarity of information will create an
increasing requirement for consistency in quality, delivery, and marketing of
products and services across borders.
★Not all companies will be able to allocate the resources or develop the
capabilities for such management of quality and responsiveness across wider
and wider geographic boundaries.
★Companies are also in danger of foregoing the benefits of differentiation
from recognizing and capitalizing on country-specific and regional
opportunities.
★Companies are also in danger of foregoing the benefits of differentiation
from recognizing and capitalizing on country-specific and regional
opportunities.
★Companies are also in danger of foregoing the benefits of
differentiation from recognizing and capitalizing on country-specific
and regional opportunities.
★After studying and analyzing Whirlpool’s case, I recommend that in
pursuing a global strategy, companies should not ignore the existence of
individual countries altogether. Many successful product or service
innovations have resulted from ideas observed elsewhere. A presence in
international markets creates tools for gathering market intelligence and
is considered an important benefit of a varied international presence and
a factor that is leading to centralize operations. Indeed Whirlpool has
come a long way since embarking on its global strategy.
★In a word, from my point of view, in the globalization age, because of
“Globalization Headaches at Whirlpool”, Whirlpool should focus on its
global marketing strategy and sales modes.
To what extent should Whirlpool adapt
its global strategy?
张其燕3206004357
Global strategies require some degree of adaptation to regional and
national conditions. But not all companies will be able to allocate the
resources or develop the capabilities for the standardization that the
international strategy agenda over-emphasized .
When Whirlpool went in to for global for the first time, it had
extremely difficult experiences in globalizing their market because
the company did not meet the customer preferences in different
countries. In addition ,the external and internal factors also put
numerous pressures on Whirlpool.
But Whirlpool soon realized the problem. It learns that in pursuing a
global strategy, companies should not ignore the existence of
individual countries altogether. Many successful product or service
innovations have resulted from ideas observed elsewhere. A
presence in international markets creates tools for gathering market
intelligence and is considered an important benefit of a varied
international presence and a factor that is leading to centralize
operations.
Thereby, For adapting its global strategy, whirlpool take attention
to some aspects .For one thing ,Whirlpool uses its sufficiently
skilled to implement integration and coordination effectively. For
another ,the company masters the greater clarity of information
which are about the requirement for consistency in quality,
delivery, and marketing of products and services across borders.
Last but no least, to meet the customer preferences in different
countries.
Thereby, For adapting its global strategy, whirlpool take attention to
some aspects .For one thing ,Whirlpool uses its sufficiently skilled to
implement integration and coordination effectively. For another ,the
company masters the greater clarity of information which are about
the requirement for consistency in quality, delivery, and marketing of
products and services across borders. Last but no least, to meet the
customer preferences in different countries.
With the development of the Whirlpool's global strategy ,the
company becomes more and more strong, and more and more
optimistic about the prospects .