VRIO on Whirlpool (Whirlpool internal external analysis report) - Essay Example

Whirlpool Corporation Analysis Report Whirlpool Corporation is involved in manufacturing and marketing of major home appliances to the whole world. Some the principal products manufactured by this company include the refrigerators, laundry appliances, freezers, dishwashers, cooking appliances and more. It falls under the category of consumer electronics industry. In addition, the company targets the middle and upper class people with their prices categorized in the mid-price premium segment (Snyder and Duarte 22).

Whirlpool Corporation can be analysed using the concept of VRIO where the both internal and external operations are evaluated to give a detailed report. The essay is based on this analysis which also covers the strengths, opportunities, weaknesses threats to the organisation. Valuable, Rare, Imitate and Organized (VRIO) is an analysis technique that surveys the external and internal environments of a company so as to produce a good and reliable business report. The valuable component of analysing a business focuses on the attractive features of the company that are not common in other competing companies.

In addition, the company becomes valuable when it produces goods at a lower cost and sells the final products at affordable prices making high profits. Whirlpool Corporation is largest producer of major appliances in the world. As discussed earlier, the major appliances include the freezers, refrigerators, vacuum cleaners and air treatment products. Other competing companies such as Samsung, Elextrolux, LG electronics and Haier mostly focus on simple home appliances and other home devices. While other companies partly manufacture home electronics, Whirlpool Corporation specialised in the major appliances and thus becomes the leading producer in the world (Snyder and Duarte 25).

The highly skilled and specialised personnel enable the company to manufacture appliances at a lower cost, which are then sold at affordable prices. The Whirlpool Corporation considers patents and trademarks as valuable assets that protect their designs and technology. In addition, the manufacture high-quality products, unlike other firms who have trademarks, but, produce low quality products. Some of the popular trademarks of Whirlpool Corporation include the Consul, KitchenAid and Whirlpool (Robbins, Stuart-Kotze and Coutler 123).

As a result, the popular trademarks give the company competitive advantage and thus enlarging their markets around the world. Also, the strong internal environment enables the company to perform well in the market. It consists of strategic business units, that is, the global air treatment unit, microwave oven unit and financial corporation units. These units give them temporary competitive advantages over Bosch Siemens, Samsung and other competitors. The manufacturing process and the design of the company’s products are not hard to imitate since Elextrolux, Samsung or Siemens also produce such products.

In other words, Whirlpool Corporation does not have the monopoly of manufacturing major home appliances because many companies produce similar appliances. However, the company has invested in research and development in order to create new designs that are likely to enlarge their markets over time. It has around 60 technology research and development centres around the world (Robbins, Stuart-Kotze and Coutler 125). Whirlpool internal structure is organized to capture new ideas and opportunities so as to increase sales and influence in the market.

As stated earlier, the strategic units are structured in such a way that they can accommodate changes in the future. Also, the human resources are trained to accommodate and increase the sale and market of the company. The company profile indicates that the recovering housing market in the US is an opportunity that can be exploited since people will demand for more appliances. Additionally the predicted growth in Compound Annual Growth Rate (CAGR) in India is an opportunity for Whirlpool Corporation home appliances (Snyder and Duarte 30).

Works Cited Robbins, Stephen P, Stuart-Kotze, Robin, and Coulter, Mary. Management. Toronto: Prentice Hall Canada, 2003. Print. Snyder, Nancy T, and Duarte, Deborah L. Unleashing Innovation: How Whirlpool Transformed an Industry. San Francisco: Jossey-Bass, 2008. Print.