Knowledge Management at Whirlpool

<< Previous

Excerpts

Background Note Whirlpool was the world's leading manufacturer and marketer of major home appliances with 66 manufacturing and technology research centers around the world as of 2011. It manufactured appliances across all major categories, including fabric care, cooking, refrigeration, dishwashers, countertop appliances, garage organization, and water filtration. The company's leading portfolios of brands included Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, and Bauknecht. In 2011, Whirlpool generated annual sales of around US$18.7 billion and had 71,000 employees globally. The history of Whirlpool dates back to 1911 when three brothers 3/4 Frederick, Louis, and Emory Upton - set up a company, Upton Machine Corporation (Upton) at St. Josephs, Michigan, USA, to produce electric motor-driven wringer washers...

In 1997, Whirlpool rolled out a brand focused value creation strategy which focused on building brand equity and customer loyalty by developing path breaking products. Whitwam felt that in order to execute its brand focused value creation strategy, Whirlpool would have to be innovative and operationally excellent. However, the company was unable to create sufficient value for its shareholders, though it was the leading global home appliance maker at that time. The company's revenues, profit margins, and market share remained stagnant. According to Whitwam, "Despite our aggressive actions during the last several months, we continue to face industry and economic conditions that have led to intensified price competition, rising material costs, and slowing or declining demand. Appliance-industry shipment declines in North America and a broad industry slowdown in Europe have been far more pronounced than previously forecast"...

In September 1999, Whitwam announced the company's new vision - "Innovation from Everyone and Everywhere", which meant innovation across the company including its products, customer touch points, business systems with suppliers and vendors, and its entire strategic focus. The key objective of the strategy was to derive innovative ideas not just from a central product development team but from everywhere and everyone. The new vision was supported by three new prerequisites - Reach High, Focus on What Matters, and Do What You Commit To. The new innovation system defined innovation as a creative idea focused on a customer touch point that offered unique and compelling solutions to the customer, provided sustainable competitive advantage, and created extraordinary value for the company's shareholders...

Gradually, Whirlpool developed its 'consumer-driven innovation model' that recognized three areas for innovation - new products, marketable innovations, and product replacements. It was reported that the innovation model encouraged employees to understand customer needs and get more involved in product development. To drive innovation further, Whirlpool applied the Double Diamond innovation process wherein products were designed by looking at various perspectives such as company values, customer views, understanding the processes, and environmental issues. The phases in the Double Diamond innovation process included ideas, business case, experiments, prototype, and scale-up...

Excerpts Contd... - Next Page>>

---

	Enter your search terms Submit search form

---

Marketing Financial Products ICMR Textbooks Collection	Case Studies in Finance Volume-IV Case Volumes Collection	Case Studies in Finance Vol III Case Study Volumes Collection