GLOBALIZATION AT WHIRLPOOL. 06 国贸 3 班 组员 ： 3206004427 邝乃英 (question3) 3206004428 黎丽仪 (question1,2) 3206004429 李曼丽 (question5) 3206004430 梁玉婷 (question4). 1 ） To what extent is the appliance market regional rather than global? （黎丽仪）.
GLOBALIZATION AT WHIRLPOOL
To what extent does Whirlpool’s experience suggest that globalization is not a good idea in the appliance business? Explain fully.
In my opinion, there are many reasons why Whirlpool experiences suggest the globalization is not a good idea in appliance business. Now, let me mention some difficulties that Whirlpool faced in its globalization.
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.
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.
I strongly believe that Whirlpool had extremely difficult experiences in globalizing their market because the company did not meet the customer preferences.
Here are some examples in difference markets.
＊In the European market
＊In the Asian market
Asian consumer preferences were different from those in Europe or North America.
Kitchen appliances needed to be smaller to fit in Asian kitchens. Lack of space sometimes required the consumer to store the appliance in an outside hallway and transport it into the kitchen for use. Also refrigerators also tended to be smaller and more colorful. When Asian countries first began to experience significant economic growth, some East Asians viewed their refrigerators as status symbols .
These external factors put numerous pressures on Whirlpool. In addition, other external factors- intensified competition in Europe, Mexico 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.
From what is mentioned above we can reach the conclusion that globalization is not a good idea in the appliance business, suggested by Whirlpool’s experience .
To what extent should Whirlpool adapt its global strategy?(李曼丽)
should not ignore the existence of individual countries altogether.