that in order to make Whirlpool one company worldwide it first required making Whirlpool a global brand, which was a formidable task in Europe where the name was not well-known. Because of the different preferences of consumers in different markets, a purely global strategy with standard products was not appropriate. Whirlpool would have to adapt its products to local markets, but maintain some global integration in order to realize cost benefits.2. What seem to be the key success factors in the appliance business?The key success factors in the appliance business are to cut cost, produce innovative products continuously, and meet or exceed customer preferences. These are must-have factors that all appliance businesses intend to focus on. In my opinion, cutting cost is the most important factor in the appliance business. According to G.E. Appliances CEO David Cote, This industry doesnt reward investment, so we have to spend money sparingly and carefully. After Maytag pulled out from Europe, the company concentrated in North American Market. Despite the failure in Europe, Maytag increased its sales as much as 20%, and also increased share price up to $46.56. This type of success could become possible because Maytag cut cost by revising its suppliers. Sourcing down its 936 suppliers in 1996 to 135 suppliers in 1999, Maytag gained enormous profits and competitive advantage over its competitors. GE also concentrated on cutting cost by creating joint ventures with companies abroad. For example, GE established partnerships with Godrej and Philacor to manufacture refrigerators and laundry products. Since these two companies, based in India and Philippines, could manufacture quality products at low price, it was a massive advantage for GE. Through this successful partnership with these suppliers, GE was able to cut cost and generate $6.4 billion in sales in 1996 (Johansson, 2000). Introducing innovative products continuously is ano...
