Whirlpool Ppt

Competitive Strategies at Whirlpool India

Case Analysis by: Vipin Solanki 007 Ghanshyam

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Varsha Vijay

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Neha Nair

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Hari Krishan 035

Whirlpool India ±A Brief Insight Worlds Worlds larges largestt white white goods goods comp company any,, status status reac reached hed in in 2006. Sale Sales s -$1 -$18b 8bilillilion on,, 7300 73000 0 empl employ oyee ees. s. More More then then 70 manu manufa fact ctur urin ing g cent center ers. s. Ente Entere red d Indi India a thr throu ough gh a JV with with TVS TVS grou group. p. 1995, 1995,acq acquir uired ed kelvi kelvinat nator or to to faci facilit litat ate e entry entry into into refrigeration refrigeration market.

Whirlpool India ±A Brief Insight Worlds Worlds larges largestt white white goods goods comp company any,, status status reac reached hed in in 2006. Sale Sales s -$1 -$18b 8bilillilion on,, 7300 73000 0 empl employ oyee ees. s. More More then then 70 manu manufa fact ctur urin ing g cent center ers. s. Ente Entere red d Indi India a thr throu ough gh a JV with with TVS TVS grou group. p. 1995, 1995,acq acquir uired ed kelvi kelvinat nator or to to faci facilit litat ate e entry entry into into refrigeration refrigeration market.

Vision-Every Home ,Everywhere, with pride,  passion and performance.

MissionMission- Everybody Everybody creating creating loyal  loyal  customers for life

OBJECTIVES

Innovation Operational excellence Customer centric approach Diversified talent

BUSINESS

PORTFOLIO

PRODUCT PORTFOLIO

Air treatment

Air conditioners

Fabric care

Microwave ovens

Food preparation

Refrigerators

Food stream solution

Washing machines

WHIRLPOOL STRATEGIC FRAMEWORK

Transformation from accomplished  manufacturer to a consummate marketer 

BUSINESS Brand

TRACK

building

ISO and six sigma Export oriented unit established Market positioning Consumer sensing Productivity improvements and cost reduction

Strategies Generic Strategies Corporate Level Strategies Other Important Strategies

Strategies Generic Strategies Corporate Level Strategies Other Important Strategies

GENERIC BUSINESS STRATEGIES

When the two factors of positioning-the competitive advantage and competitive scope are combined Competitive advantage can arise due to two factors  Lower cost  Differentiation

Competitive scope can be in terms of two factors  Broad market  Narrow market

PORTER¶S GENERIC STRATEGIES

Competitive Advantage

Lower Cost Broad

Target

1. Cost Leadership

Differentiation

2. Differentiation

Competitive Scope

Narrow Target

3 A. Cost Focus

3 B. Differentiation Focus

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Ansoff Matrix

Concentration Strategy

Internationalisation & Cooperation

Digitalisation Transformation of value chain Integration of communication technologies with business processes and management practices.

Market Positioning & Advertising Theme- Your Partner in Home Making Customer Focused Innovations Ad campaign- Ice Ice baby!!

Food For

Thought!!!

Q uestion 1

Analyse the case to identify the type of generic business strategy or strategies Whirlpool India is adopting

Strategy adopted by Whirlpool Differentiation strategy Market

positioning is on the theme µyour partner in homemaking¶ Core competence-customer excellence Customer focus drives innovations Differentiation built on customer responsiveness. Focus on special features- movable trays, space for  large bottles and strong body to withstand the heavy loads .

Future plan.

Cost leadership -through sustained productivity

improvements and cost reduction. Expects to turn losses into profit by 2008 by cost reduction.

Q uestion 2

What aspects of digitalisation of Whirlpool India can you identify in the case? Discuss Briefly.

Digitalization Incorporated digital manufacturing technology into its washing machine. Software connecting CAD with assembly times and cost of materials Research Centre at Pune Online Connectivity to the rest of the world. Application of a customer centric marketing strategy Website made more interactive-2006

Q uestion 3 What aspects of internationalisation of  Whirlpool India can you identify in the case? Discuss Briefly.

Internationalization In

1958 Whirlpool Cor. entered into Brazil.

India

was identified as a growth market in the late-

1980s. 

Joint venture with TVS Group to produce automatic washers at Pondicherry. In

1995, it acquired Kelvinator of India limited to facilitate entry into the refrigerator market in India. A majority

ownership in the joint venture with TVS led to the emergence of whirlpool of India limited in 1996.

Contd..  Major



brands are

 produced

in 13 countries and

 marketed

to consumers in over 170 countries

Global consumer design centre for Asia based at Delhi

Export  R ecognized

as an export house with an export-oriented unit based at Pondicherry ( to produce kitchen Aid appliances for the export market in the U.S.)



Also exports refrigerators and washing machines to South Asia, Asia-pacific, Latin America and west Asia, R ussia and East European countries

 It

claims to be the largest exporter of home appliances from India.



Exports constitute 13 percent of the company and reached R s. 200 crore in 2006-2007 .

Q uestion 4 In your opinion, what is the stage of industry devt in the consumer durables industry in India? Depending on your ans, comment on whether Whirlpool Indias generic business strategies are appropriate.

Development stage of consumer durable industry Consumer Durables is one of the fastest growing industries in India A strong growth is expected across Projected Growth Rates

All key segments Colour TVs Refrigerators

25-30% 18-22%

Washing Machines

15-20%

Air Conditioners

32-35%

Others (including VCDs

35-40%

and DVDs)

CONCLUSION:The industy is in growing stage

Consumer durable industry in the growth stage Key factors  Competition crop up  Competitors with same core competencies  Consumer is hard to convince

What Whirlpool is doing?

Product differentiation strategy Focussing on core competencies  Distribution and Service Network  Strengthening retail distribution: 11000 retail outlets 150 cities and towns