Whirlpool Establishing A Presence In Global Emerging Markets

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Business Finance

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Read Case 6-2 Research Helps Whirlpool Keep Its Cool at Home, Act Local in Emerging Markets on page 207.

Write a 700- to 1,050-word paper in which you provide detailed answers to the following discussion questions at the end of the case study:

  • Describe Whirlpool's global marketing strategy. Does Whirlpool use an extension product strategy or an adaptation product strategy?
  • What is the primary reason people buy and own major appliances such as a washing machine? Is there a secondary reason as well?
  • What are the key lessons to be learned from Whirlpool's experience in emerging markets?

Utilize outside source material to support your ideas, and include analytical data specific to this study.

Cite at least three outside references in addition to your textbook.

Format your paper consistent with APA guidelines.

No plagarism!!!

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Whirlpool Looks to the Future in Asia and Europe After a decade of losses, Whirlpool China finally posted a profit in 2006. That same year, Jeff M. Fettig succeeded David Whitwam as Whirlpool’s CEO and chairman. If emerging markets are to be drivers of global growth under Fettig’s leadership, Whirlpool will have to build brand recognition in countries such as Brazil, India, and China. Also, consumers in emerging markets must be persuaded to move beyond washing machines to purchase some of the company’s other appliances. That trend is already gaining traction: Middle-class Chinese consumers are splurging on high-end appliances such as a side-by-side Whirlpool refrigerator that costs the equivalent of $2,500. Many of the units find their way into living rooms. As Michael Todman, president of Whirlpool International, noted, “Appliances can be furniture, too. It’s a source of pride to own one: ‘Gee, look what I can own. I’m doing well.’” By 2009, Whirlpool was still a minor player in China; in terms of market share, it was a distant third behind Haier and Midea. Fettig closed the company’s washing machine plant in Shanghai and transferred production to a joint venture with Hisense-Kelon Electrical Holdings. In 2013, with an eye to further strengthening Whirlpool’s presence, Fettig bought a 51 percent stake in Hefei Rongshida Sanyo Electric Company. Hefei Sanyo’s product strategy is well aligned with Whirlpool: The company offers the Rongshida and Royal Star brands at the low end, Sanyo is a mid-market brand, and Diqua is a premium line. In addition, the Chinese company has a strong national distribution network.
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Explanation & Answer

Your assignment is complete.

Running head: ESTABLISHING A PRESENCE IN GLOBAL MARKETS

Establishing a Presence in Global Markets
Students Name
Institution Name

1

ESTABLISHING A PRESENCE IN GLOBAL MARKETS

2

Describe Whirlpool's global marketing strategy. Does Whirlpool use an extension
product strategy or an adaptation product strategy?

The Whirlpool company is an American manufacturer of home appliances that has its
headquarters in Michigan. The company has over 90,000 employees with a revenue of $21
Billion. The company has been expanding into new and emerging markets across Europe and
Asia, and it is notable that the company was still a minor player in the market hence for this
reason the company has employed a global market strategy that is aimed to coordinate the
marketing efforts in the foreign nations. One particular approach that stands out for the company
is the adoption product strategy, upon globalization the company discovered that each market
had a different specification that would assist the home appliance product successful in the new
markets (Bhan, 2007).
The main aim of the company was to expand its consumer base however new markets have
varying needs and, in this...


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