Whirlpool and the Built-in Appliance Industry in India
(6 pages of text)
India’s real estate boom led to the built-in appliances industry’s biggest opportunity. In 2010 and 2011, a total of 533,954 residential units were launched in seven top cities: Mumbai, National Capital Region, Pune, Kolkata, Bengaluru, Chennai and Hyderabad. As the market evolved and demand increased, investments and improvements in infrastructure, software, education, work force, installation, after-sales service, logistics were guaranteed to occur. This was expected to initiate a cycle of profitable growth. Whirlpool was already an established player in the home appliances segment. Given the improving industry described above, should Whirlpool tap this emerging market? If so, what might be its strategic objectives and positioning strategies for dealing with the competition and appealing to its prospective customers?
This case shows the importance of managing strategic change in an organization with respect to the development or maturity of the marketplace, including macro- and micro-level business environmental factors, strategic choices, evaluating options and devising strategies. Strategizing requires decisions about choosing which products to launch in which cities, managing working capital requirements and adopting entry strategies to achieve the desired profits. This case is designed to be an effective teaching and learning tool in a wide range of courses, including a core marketing course in a segment devoted to strategic management or analysis of business environments, a core strategic management course or an elective on new product development.
India, Large, 2013
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