Innovation at Whirlpool - Creating a New Competency
Abstract
Case Intro 1
Case Intro 2
Excerpts
Innovation Fuels Growth
On April 25, 2006, Whirlpool Corporation (Whirlpool) reported net sales of US$3.5 billion for the first quarter of 2006, up 10% compared to the corresponding period of the previous year.
Its net earnings during that period stood at US$118 million, up 37% over the first quarter of 2005. These sales and earnings figures for the first quarter of 2006 were the highest Whirlpool had recorded in its earnings history. It was also the 19th consecutive quarter of year-over-year increase in sales revenues for the company. Analysts attributed this increase to the strong worldwide demand from customers and channel partners for the company's innovative products. Commenting on the company's Q1 2006 results, Jeff M. Fettig (Fettig), Whirlpool's chairman and CEO, said, "Our first-quarter results reflect solid performance by all regional businesses, strong earnings momentum generated from innovation, productivity, and leverage from our global operating platform."
Whirlpool had come a long way from where it had been in the late 1990s when it was faced with stagnation in revenues, profits, market share, as well as share price.
According to analysts, this was a direct result of the stagnation in its product line caused by very little attention being paid to innovation.
In 2000, David R. Whitwam (Whitwam), chairman and CEO of Whirlpool, initiated major efforts to bring about a change in the company's corporate culture and embed innovation as a core competency.
Analysts felt that these efforts, which were later carried forward by his successor Fettig, had borne fruit, judging by the consistent growth in Whirlpool's revenues since 2002....
Buy this case study (Please select any one of the payment options)
