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International Business Essay

1301 words - 6 pages

Whirlpool's dramatic turnaround through internationalization
Whirlpool's Dramatic Turnaround through Internationalization

Q1: The Whirlpool Corporation manufactures dryers, washers, refrigerators, freezers, dishwashers, microwave ovens, compactors and ranges in thirteen countries and trades them in almost 170 countries under the brand names Whirlpool, Magic Chef, Maytag, Jenn-Air, Kitchen Aid, Amana, Kenmore, Bauknecht and Brastemp. Whirlpool generated more than $19 billion in 2006 as the annual sales indicting an increase of 26% from fiscal 2005. This was due to increased international demand for its innovative products and brands. Whirlpool acquired Maytag Corporation in the same year in ...view middle of the document...

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Whirlpool enhances competitiveness in the domestic market by going international. Internationalization raises the level of profits by stabilizing the seasonal fluctuations in the sales volumes commonly associated with local demand. Internationalization helps curtail production costs and other related marketing expenses owing to economies of scale. Similarly, going international extended the potential sales of the products that existed and helped the company to gain greater global market share. The firm also takes pride in advanced technology associated with some global markets such as China, Poland and Mexico. As a result, this has helped in saving on costs associated with unnecessary technology transfers. Considering internationalization has boosted whirlpool ability in retaining high technology levels as well as skilled labor force sourced across nations. Going global enhances profitability levels owing to the perceived currency strength across nations (Brown& Gutterman, 2003).

Q3: Whirlpool integrated local subsidiaries operations in order to enhance its technology capacity locally and perhaps transfer this to the global market for competitive reasons. As result, processes such as production and distribution are easily shared with the company divisions in global niche. During this integration whirlpool acquired other appliance businesses from various regions in Europe, Italy, Poland, Bulgaria, Hungary, Russia, Romania, Czech Republic and Slovakia, in a bid to expand globally. This saw the firm open offices in New Delhi, Hong Kong, Shanghai, and Singapore to facilitate global operations. Major considerations have been made during these global operations. For example, the firm manufactured low-cost versions of the popular models in order to target the customers in the low-income areas such as China, Latin oor even in India. Continuous improvement on the product has seen the firm grow faster. For example, in technological improvement Whirlpool has manufactured a microwave oven that grills bake pizzas, steaks, and has drawers which slide out for easier access to the large dishes. The firm has also developed a washer that avails various usage options for consumers, since it has a built-in sensor to detect the load size and automatically select the spin speed, water levels, and the type of appropriate wash cycle. This helped in the company succeeding because consumers would opt to buy such appliances that are improved and easier to use.

Such a move assisted whirlpool in targeting all social classes globally. Additionally, whirlpool undertook training for nearly all job classification that lasted almost a year and conducted by some outside consulting group. This move boosted the firm's bid in obtaining local talents. Whirlpool has cross-regional R&D teams cooperating across the global in ensuring diverse clients'...

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