In 2006 whirlpool became the largest home appliance maker in the world. This was not an easy feat. The appliance industry is highly competitive industry with price wars being a driving factor for competition. Whirlpool’s philosophy focused on customer loyalty. Its products were built to be reliable with long lifecycles, which meant substantial emphasis had to be paid to product quality. Whirlpools philosophy is particularly difficult as it needs to not only to make high quality appliances, but it needs to do so efficiently to stay ahead of the competition.
The primary focus of the article is on china, China had become the largest household electrical market in Asia Pacific area at the time. Further, China stood out as one of the largest household appliance makers in the world, also boasting a large market share. In 1995 Whirlpool had entered the Chinese, however quickly withdrew due to its unfamiliarity with and unclear positioning in the Chinese market; this was however prior to China jointing the World Trade Organization. China’s entrance into the WTO resulted in freer access to China’s market, this greatly improved conditions for Whirlpool.
By 2011 the Whirlpool brand was regarded as a high-quality product by Chinese consumers and Whirlpool even relocated its Asian headquarters to Shanghai. Whirlpools multinational experience helped it become a player in the Chinese market. Due to many factors (transportation delays, lack of technology and capacity of foreign resources, cultural and language differences, quality assurance, political and economic stability, and proper inventory management systems) Whirlpool set up it procurement office in Shaingai. Procurement was done in china for a variety of reasons, but mainly lower associated cost.
Being a supplier for Whirlpool was not easy, Whirlpool’s standards were extremely high, The Whirlpool Supplier Quality System was developed based on the ISO 9001. The household appliance industry was