User:WhirlpoolAnalysis/sandbox

Bargaining power of Buyers: Customers in this market are constantly demanding innovative products, at the lowest cost. With endless alternatives available, Whirlpool needs to constantly develop, innovate, and market their products in a way that convinces customers of their quality and brand. Whirlpool bargains with their customers by offering quantity discounts, and devoted a large portion of their revenue to research and development, helping produce a better product for a lower price. Increasing interest rates and declining sales of homes directly contributes to the gross amount of sales in home appliances, and has impacted whirlpools financial objectives negatively.

Bargaining power of Suppliers: The industry has faced a slow increase in the cost of materials such as metals, oil-based materials, resins, as well as transportation. These changes in the global economy have forced operating costs to slightly increase, while pushing Whirlpool to innovate and maintain their competitive advantage. Whirlpool does not use a single supplier for their raw materials, so alternatives are always available, and often used when prices pose a threat to forecasted operating and manufacturing costs. Whirlpool’s dependence on resources is unique, because they possess the power to do business with whomever they feels best suits their needs, whether it be price, speed of delivery, or cost of transportation.

Industry Rivalry: The household electric appliance industry is endlessly competitive, as firms are constantly trying to develop the next unique product. Although the consumer need for these goods will remain in place for the foreseeable future, the suppliers of these goods will fluctuate due to industry demands and consumer preference. By increasing customer value, Whirlpool has been able to dominate the industry and trump competitors when it comes to consumer satisfaction and return on investment. A steady decline in the sale of products to retailers such as Sears, Home Depot, and Best Buy, has pushed Whirlpool to compete in a market whose buyers are willing to pay less, while demanding more. Whirlpool has focused their commitment to profitability by focusing on areas that are less reliant on the success of their retailers. Whirlpool is also subject to the Foreign Corrupt Practices Act, which places them at a disadvantage to foreign competitors who are not subject to these laws.

(http://www.timesfreepress.com/news/business/aroundregion/story/2016/jan/15/chinese-appliance-maker-buys-ge-appliance/344873)

(http://www.wikinvest.com/stock/Whirlpool_(WHR)/Filing/10-K/2009/F3464831)

Founders/BRIEF (1-2 paragraphs only) history


 * Whirlpool’s original name was Upton Machine Company which was a family run business by Lou Upton. Lou started off by investing his money in a venture to manufacture household equipment. However this business failed, he was then given the chance to select something from his failed to venture as a return on his investment. He chose the patents on hand washing machines which be believed could be electrified. In 1911 Lou and his family produced motor-driven wringer as the Upton machine company. There was immediate demand for the product and so the company started to grow and they merged with another company called Nineteen hundred corporation. Even during the great depression the firm was growing.


 * WW2 brought a stop to production of washing machines. In the summer of 1945 they started manufacturing washers again and over the years as the company grew so did their product range. In 1949 the company was rebranded to Whirlpool where they were making $48 million in sales and annuals earnings of $3million Reference - http://www.whirlpoolcorp.com/history/ accessed 9/11/16