rtments at different temperatures and to isolate odors. Also, because houses are smaller in Japan, consumers desire quieter appliances.Whirlpool already was the dominant player in a fragmented industry.High costs due to tailored products in Europe and Asia. The innovation from the local R&D groups resulted in products that were R&D driven instead of market driven.External and internal factors that I mentioned on Question #3.In 1995, Whirlpools European profit fell by 50% and in 1996, the company reported a $13 million loss in Europe. In Asia, the situation was even worse. Although the region accounted for only 6% of corporate sales, Whirlpool lost $70 million in Asia in 1998 and $62 million in 1997. In Brazil, Whirlpool found itself a victim in 1997, and again in 1998, of sky-rocked interest rates. Despite the companys investments of hundreds of dollars throughout the 1990s to modernize operations there, appliance sales in Brazil plummeted by 25% in 1998 (Johansson, 2000). I strongly believe that Whirlpool had extremely difficult experiences in globalizing their market because the company did not meet the customer preferences. The European market consisted of more than 320 million consumers whose preferences varied by country and by region. For example, Swedes preferred galvanized washing machines to withstand the damp salty air. The British washed thier clothes more often than the Italians did, and wanted quieter machines. The French liked to cook on gas at high temperatures, splattering grease on cooking surfaces, and so preferred self-cleaning ovens, while the Germans liked to cook on electric stoves at lower temperatures and did not need such features (Janesurak, 1995).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 i...
