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Supply chain management: Whirlpool - Term Paper Example

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Supply Chain Management: Whirlpool Summary The home appliance manufacturing industry is worth over 17 billion US dollars in the US employing over 50 thousand people. The products of the industry include dishwashers, freezers, washing machines, ovens, air conditioners, clothes dryers, laundry equipment, and others (Snyder and Duarte, pp…
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Supply chain management: Whirlpool
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Download file to see previous pages Integration of IT in business has led to many cost advantages for the organization. In fact, much of the innovation and increased communication amongst the employees of the organization is because of IT. It has streamlined the processes and help the organization in achieve its goal of “every home, everywhere” (Snyder and Duarte, pp. 20-25). Although, supply chain management has been an issue for the organization. During 2000, a famous joke in the home appliance industry of US was that whirlpool ranked fifth amongst the four top home appliance manufacturers in terms of delivery of performance. Amongst the recommendations for the organization, focusing on customer needs, imitating or beating the competition and building partnerships are the obvious solution. Industry The household or home appliance manufacturing industry is an important industry for the US and many developing countries since their contribution to the GDP and employment is significant (Snyder and Duarte, pp. 30-32). According to the statistics of the year 2011, the home appliance manufacturing industry of the US was estimated to have earned revenue of over 17 billion US dollars, employing over 50 thousand people. ...
Although, it expects that in the near future, if the housing market witnesses a boom, so would the home appliance industry (Woods and Mattern, pp. 85-86). Over the past couple of decades, information technology has completely changed the landscape of the industry and the competitive forces acting on it. The bargaining power of the buyers has increased because now they have better information about the products, prices and their characteristics thus; they can play competitors for each other. The US home appliance industry is a highly concentrated industry with the four top players, Whirlpool, LG, GE, and Electrolux claiming more than 90 percent of the market share (Marquardt, p. 52). The advent of IT has only intensified this rivalry because it has broadened the scope of competitors in terms of their geographical operations. LG and Electrolux would not have been active players in the home appliance industry of US if it were not for the globalized market place created by the use of IT. Suppliers also now have more options and better knowledge thus increasing the threat of their forward integration and bargaining power. The threat of substitutes and new entrants appear to be largely unaffected (Palvia, Palvia, and Zigli, pp. 324-325). Company With a history of over a century, Whirlpool Corporation has established itself as a leading player in the industry. It does not only operate in the US industry but it is a worldwide and global player. One of the biggest achievements in this regard is the fact that Whirlpool has devised a mechanism to keep their IT budgets and costs down over a long term. Whirlpool has developed its expertise in leveraging the SAP NetWeaver in such a way that it is now able to develop its capabilities and ...Download file to see next pagesRead More
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