Overview Whirlpool Corporation, the world no.1 appliance company, who sells refrigerators, stoves, washing machines, dryers and microwave ovens from domestically to globally. Global economic crisis has translated into lower sales in North America and Europe. By acquiring Philips Electronics, Whirlpool has vaulted into the number 3 position in Europe. However, the developing nations in Asia and Latin America hadn’t achieved the desired results. The structure of the appliances industry is the main challenge faced by Whirlpool such as the industry overcapacity is a major issue.
In 1990s, Whirlpool has began to streamline the European organization to cut costs and increase margin. The president of Whirlpool was confident that a global market segmentation approach was the key to success in Europe. Research has also indicated that consumers in different countries prefer different types of features. Besides, Whirlpool has conducted the usability studies that provide insight into the ways that consumers interact with its products. The results are used to help designer create appliances with a distinctive look and feel. Market research also drives the search for new products that address the specific needs of developing markets. Their researcher has convened a focus group and made visits to representative households for conducting the research regarding the needs by this group of people. Whirlpool has invested $30 millions to develop the new washer to meet the large class of consumers who still wash clothes by hand. Apart from that, focus group research indicated that consumers would find a smaller capacity washer acceptable and they also realized that the washer should be aesthetically pleasing. Adaptation of the platform are manufactured and marketed in Brazil, China and India. In 2006, Whirlpool China finally posted a profit by entering the market via joint