Whirlpool Case Study

1995 – Whirlpool continued to strength its global leadership in major home appliance industry

Disappointing performance due to manufacturing inefficiencies and start up cost of new fridges in US, partly due to restructuring difficulties in Europe, as well as raw materials cost increases combined with minimal growth or even declining demand in North Americaand Europe

US APPLIANCE INDUSTRY

Home appliance classification:

Laundry Washers and DryersRefrigeration Refrigerators and FreezersCooking Ranges and OvenOthers Dishwashers, Disposals and

Trash CompactorsFloor Care (SomeMfgs)

Floor polishers and vacuum cleaners

Manufacturing cost comprised about 65% to 75% of total operating cost while Labor – less than 10%

Component production = scale-sensitive i.e. doubling compressor out for fridges reduced unit cost by 10%-15%

Robotics introduction reduced scale economies while improving quality and performance consistency and enhancing flexibility

Industry Structure

1980s – 1990s: Appliance manufacturers realized they must offer complete line of appliances even if they did not manufacture all of them themselves which was the reason

Merger Activities:

Electrolux White Consolidated

Whirlpool KitchenAid and Roper (broadened WP presence at high end & low end of the market)

Maytag Jenn-Air and Magic Chef

Inter-firm Sourcing:

Whirlpool made trash compactors for Frigidaire (Electrolux/White Consolidated)

GE made microwave oven for Caloric (Raytheon) and Jenn-Air and Magic Chef (Maytag)

By 1995: 5 major competitors controlled 98% of the core appliance market

Whirpool 35% | GE 29 3% | Maytag 14 4% | Electrolux 13 5% | Raythron 62%

Competition in US (1980s to 1990s)

Industry demand depended on:

State of economy, Disposable income level, Interest Rate, Housing Starts and Consumers’ ability to defer purchases

Market Saturation level remained high and steady due to market maturation

Factors of competition

Lower cost, monitor margins, achieve economies of scale

Big 5 all renovating and enlarging facilities

Electrolux spent over 500 million to upgrade old plant for White Consolidated Industries

GE automated its Louisville plant which over 10 years halved the work force and raised output by 30%

Maytag built new facilities in the South for lower cost and non-union labor purposes

Others built twin plants on the Mexican border to profit from cheap labor

Factories / plants produced one product category only covering all price points

Quality became an important feature in this industry

Relation with suppliers changed as companies used fewer of them than in years past

Contracts set up over longer terms to improve quality and keep costs low with just-in-time deliveries

Demand for faster delivery which caused manufacturers to improve delivery systems

Innovation

Increase in government regulations:

- Concern on the more stringent environmental standards in the European community would become a law in US

- Possible ban on CFC in refrigerators by 1995- To reduce water consumption and noise level for washer and

dishwasher

Advances in computer software:

- New programs using fuzzy logic or neural networks- Technologies in cooking surfaces – ceramic glass units, solid

elements, modular grill configurations - Self cleaning oven, automatic ice cube makers, self defrost

fridges, pilotless gas ranges, and appliances that can be preset

Intense competition

- Consumers concerned with how appliances look- White on white look which made the kitchen look larger

Outlook

US continued to look unattractive, growth rate est at 3% baed on 1994demand of 46 million units At the prevailing saturation levels, demand was restricted mostly to replacement purchases (79%) with remainder going to new housing and household formation This creates the need for competitors to look elsewhere

GLOBALIZATION OF THE APPLIANCE INDUSTRY

Foreign Competition

- 1992 – 98% of dishwashers, washing machines, dryers, fridges, and ranges sold in US were made domestically

- Big 4 each owned the market for each major appliance except for microwave ovens

- Before 1986, Microwave import from Korea - Goldstar, Samsungand Japan – Sharp and Matsushita = 17% of total appliance sales

Europe

Prime attractiveness to US manufacturers because:

- Western Europe moved towards a unified market of some 320 million consumers

- Appliance demand expected to grow 5% annually- Political changes in Eastern Europe integrated these

countries into the world trade system

Companies’ operation style:- 1970-80s European white goods industry experienced same

consolidation as US:- Until mid 1980s – most companies either produce and sell in

only one national market or export to a limited extent to many European markets from one country

- By late 1980s – Electrolux Zanussi, Philips Bauknecht, Bosch-Siemens, Merloni-Indesit, Thompson, and AEG had controlled 70% of market (excluding ovens and air-con)

About European Markets:- Segmented with different consumer preferences pertaining to

almost every type of appliance due to different lifestyle e.g. Americans prefer to stuff as many clothes into the washer while Europeans prefer smaller built-in models and eating habits e.g. French prefer to cook food at high temp while German prefer to cook at normal temp

- Hard to establish pan-European models that would yield sustainable competitive advantage through manufacturing, procurement, and marketing efficiencies

- Many of the national markets featured strong competitors- Distribution is different from US: basically 2 channels

(retail trade and kitchen trade) - A.B. Electrolux, a strong player in the appliance industry

managed to acquire more than 200 acquisitions in 40 countries spanning 5 businesses

- A.B Electrolux also tried to establish a pan-European approach to the appliance market, followed by exploring trans-Atlantic opportunities. However they ran into trouble in 1993 during the recession and combined with market fragmentation, reduced their profits far below the targeted 5% margin

- Germany: Bauknecht (Philips), Semens-Bosch and AEG-Telefunken

- Britain: GEC’s hotpoint- France: Thomson-Brandt- Italy: Merloni adopted low-cost labor strategy- In 1980s, no brand had more than 5% of the overall market,

even though the top 10 producers generated 80% of the volume\1989 - How the Americans closed up the gap relative to

geographic scope of Electrolux: - Americans landed in Europe- GE joint venture with Britain’s GE Corporation (GEC)- Maytag acquired Hoover Division through the purchase of

Chicago Pacific- Whirlpool joint venture with N.V. Philips- In spite of concerns about differing consumer preferences in

Europe, the largest U.S. appliance manufacturers establishedthemselves before the 1992 EU Program became a reality. European Community rules required 60% local content to avoid

tariffs, which combined with the fear of a “Fortress Europe”protected by Community-wide tariffs after 1992, excluded exports as a viable strategy

- Within short period, further agreement followed: AEG with Electrolux in washer and dishwasher, Bosch-Siemens with Maytag, European Economic Interest Group combined with several manufacturers with France’s Thompson-Brandt as the leader

- Despite this trend, number of European manufacturers of homeappliances was estimated to be about 100

Asia

World second largest home appliance market due to:

- Rapid economic growth in the near future thanks to booming economies of the Pacific Rim countries

- Expected growth rate at least 6% annually through the 1990s- Biggest promise on the world’s most populous states: China

and India - Though both are only approaching levels at which people

could afford appliances_____________________________________________________________________

- Market dominated by 50 widely diversified Asian manufacturers, primarily from Japan, Korea and Taiwan

- Preferences different from North America and Europe mainly due to lack of space hence owning a fridge represented a status symbol and created a demand for stylish colors and finishes

- Technology wise: both direct-cool and forced-air models werecommon in Asia whereas in Europe more to direct-cool and North America more to forced-air version

- Washers had to be portable mainly because of lack of space and no basement to keep washers permanently hooked up to water supply and drain – often moved to bathroom and kitchenfor use

- Due to delivery to apartments without elevators there is need for manual carrying up flights of stairs, thus lightweight designs on wheels coupled with handles for easy relocation is necessary

- Washing habits were different as well due to the types of fabric used by different cultural and market groups.

- Likewise for cooking, differences were noted on the two-burner, tabletop cooking unit used in contrast to ranges used in North America and Europe.

- In air-conditioning, split-system units were the dominant version in Asia, Units installed high on the wall so that window space would not be blocked hence making remote control an important feature.

Latin America

The region that promises attracting growth once the markets emerge from decades of political instability, economic mismanagement and hyperinflation

- 1990 – above happened and coupled with efforts to lower tariffs which stimulated trade

- 1994 – white goods industry in comprised about 65 competitors

- Whirlpool expected appliance shipments to expand faster thanin North America and Europe

WHIRLPOOL CORPORATION

Company Background- 1996: Headquartered in Benton Harbor, Michigan - One of the world’s leading manufacturers and marketers of

major home appliances- Company plants located in 12 countries- Distributes to over 140 countries under 28 brand names- Recognizes the world compassed 4 major regions:

1. North America (Canada, Mexico and US) : 46 million units sold annually

2. Europe (Western, Central and Eastern Europe, Africa and Middle East) : 50 million units sold annually

3. Asia : 56 million units sold annually4. Latin (the Caribbean, Central and South America) : 17

million units - Mid 1980s, limited growth potential of its established

markets motivated Whirlpool’s top management “to remain focus on major home appliances but to expand into markets not already served by Whirlpool”

North America Appliance Group- Formed in 1989 from operations in US, Canada and Mexico- A streamlined organization with an unified strategy,

originally around 4 brands- 1992: Whirlpool reorganized NA operations behind a strategy

to create a “dominant consumer franchise” (DCF). Such a strategy required a better understanding of consumer needs;

improving product quality and keeping low costs was deemed necessary but not sufficient. Objective was to become more customer focused, which entailed a functional organization dealing with 4 core processes: product management, brand management, trade partner management and logistics.

- New approach employed cross-functional teams within each function with product business teams at the center

- To support its DCF strategy, Whirlpool announced a multitudeof new products aim at 6 discrete appliance consumer segments i.e. 1. The traditionalist2. The housework rebel (Whirlpool that helped consumer to manage homes better)3. The achiever (KitchenAid brand appliances with style and substance)4. The self-assured (Roper brand appliance which were value-priced and offered basic styling and features)5. The proven conservative and 6. The homebound survivor

- Jun 1993: Whirlpool was named winner in the 30 million SuperEfficient Refrigerator Program (SERP) – where it eliminated CFCs completely by using a different refrigerant

- 1994: energy-efficient refrigerator with a CFC-free sealed system launched

- 1996: introduced a new clothes washer that use 1/3 of the water and energy of a conventional washer

- 1993 annual report: Since 1988, NAAG increased its regional market share by nearly 1/3 with help from Inglis, Ltd, the Canadian subsidiary and Vitromatic S.A., the Mexican affiliate

- 1994: Whirlpool had a major restructure, closing plants and reducing headcount in an effort to reduce costs.

- 1995: Montogomery Ward, the second largest home appliance retailer in the US, became a Whirlpool customer

Whirlpool’s Globalization

- Competitive advantage by leveraging a global presence in the various regional markets despite the differences in consumer habits and preferences

- US appliance market constraints: limited growth opportunities, high concentration of domestic competitors and increasing foreign competition

- US also represent only about 25% of the worldwide potentialfor major appliance sales

- Most importantly, Whirlpool vision can no longer be limitedto domestic borders as national borders no longer define market boundaries – marketplace for products and services is more global than ever before and growing more so every day

- Consumer in major industrialized countries are living increasingly similar lifestyles and having similar expectations of what consumer products must do for them

- As such, companies that operate on a broad global scale canleverage many of the strengths better than those who only serve an individual national market

- Very likely, appliance manufacturing will always has to be done regionally.

- Yet, the ability to leverage many of the strengths of a company on an international basis is possible only if that company operates globally

Whirlpool Trading Corporation (WTC)

- Formed to consolidate existing international activities andexplore new venture

- 1985: increased its equity interest in Inglis, from 48% to more than 50%

- 1986: Aspera S.r.l Torino, Italy was purchased from Fiat- Late 1950s: Whirlpool entered Brazil- 1969: Whirlpool entered Canada- 1980: Whirlpool globalization took shape when it added

Mexico, India and Europe through a series of joint venture- Move in South America and Asia were motivated by

expectation on climbing of disposable incomes in these continents would result in growing demand for appliance that would at least partially mirror the American consumer boom of 1950s and 1960s

- Dec 1, 1987: David R. Whitwam assumed the position of President, CEO and Chairman of the Board of Whirlpool Corporation

- Since then, he transformed a domestically oriented 4 b company into 8 b global force

- Whirlpool communicated orientation: Whirlpool in its chosen lines of business will grow with new opportunities and be the leader in an ever-changing global market. We will be driven by our commitment to continuous quality improvement and to exceeding customers’ expectations. We will gain competition advantage through this, and by building on existing strengths and developing new competencies. We will be market driven, efficient and profitable.

Whirlpool Europe B.V

- 1988: Whirlpool joint venture with N.V Philips; second largest appliance manufacturer in Europe behind Electrolux

- Deal was for a 53% interest in Philips’ worldwide Major Domestic Appliance Division for $361 million in cash; new company = Whirlpool International B.V. (WIBV)

- 1991: Whirlpool bought over remaining interest from Philipsand change name to Whirlpool Europe B.V (WEBV)

- 1994: WEBV with 13% market share, occupied 3rd position in Europe behind Electrolux (25%) and Bosch Siemens (15%) ______________________________________________________________________

- After formation of WIBV, Philips decentralized organizationwas phased out and WIBV split into customer focused business units. Brands positioned to fit the niches and conditions in Europe, an approach employed in the US

- Bauknecht was aimed at the high end of the market, Philips/Whirlpool at the middle and Ignis at the lower end

______________________________________________________________________

- 1995: Whirlpool terminated its successful brand-transfer effort and dropped the Philips brand name

- Bauknecht and Philips/Whirlpool Appliance Groups received the decentralized sales and marketing functions, respectively which supported all of Whirlpool European brands

- National sales consolidated into 3 sales regions to take advantage of the growing European cross-border trade

- Marketing function included separate, brand-oriented components to strengthen brand identity and same time ensure internal coordination

- Manufacturing and technology activities reorganized around product groups and development centers: Germany focus on laundry and dishwashing products / Italy on refrigeration and cooking

- Key support functions (Consumer services, IT, logistics andplanning) were maintained as separate, centrally managed entities

- Distribution was reconfigured towards a pan-European approach – 10/28 finished goods warehouses were closed: idea is to put systems support in place so products could be delivered more accurately and timely______________________________________________________________________

- WEBV assumed responsibility for the Middle East and Africa, which accounted for 100 million in sales, mainly inthe form of kits in an attempt to boost local content and thru preempt the emergence of domestic-content rules

- 1994: another reorganization was started to streamline operations on a Pan-European basis in conjunction with similar efforts in North America in hope of achieving annual cost savings of about 150 million, starting in 1997

- 1992:WIBV started a 4 year effort to redesign its products (entire product line) to increase manufacturing efficiency,improve product quality and increase customer satisfaction

- Whirlpool identified “value gap” in Europe – comparison ofEuropean industry’s performance against best-in-class NorthAmerican and Asian players shown that European producers delivered lower levels of customer satisfaction. Also European paid more for their appliances than their US counterparts. Today, the gap was closed by 15-20% for all appliances.

- Global outlook was forged in the management team.- Managers rotated between Europe and US to foster global

thinking.- Move paid off when in 1991 the VIP Crisp microwave oven,

developed by a new “advanced global technology unit” in Norrkoping, Sweden was introduced and quickly became Europe’s best-selling model. VIP Crisp had heated based plate that allows Italian to bake crisp pizza crusts and British to fry eggs. VIP Crisp was subsequently imported tothe US

- WEBV moves to establish itself in the emerging markets of Central and Eastern Europe which in 1991 represented about 11% of the world appliance market and promised attractive growth opportunities over the long term.1. Bauknecht – set up distribution system in East Germany

after opening of border2. 1992: WEBV developed distribution networks in the entire

region and established a wholly-owned sales subsidiary inHungary

3. 1992: Whirlpool took 43.8 minority investments in Whirlpool/Tatramat as a joint venture in the Slovak Republic, which manufactured and sold automatic washers and marketed products assembled at other WEBV locations.

4. 1993: Sales subsidiaries had been opened in Poland and the Czech Republic (strengthen position in Eastern Europeand Greece in Southern Europe).

5. 1994: WEBV took controlling interest in this joint venture.

6. 1995: Joint Venture with Russia7. 1996: Expansion into Romania and Bulgaria planned

Latin American Appliance Group

- 1958: company purchased equity interest in Mulitbras S.A. (Brazil), a major appliance manufacturer

- Whirlpool strategy: taking full advantage of this large emerging market by optimally positioning its brands across the entire spectrum, based on in-depth consumer research inan attempt to cultivate “customers for life”

- Brazilian market = half of all appliances sold in L/A in 1994 – Whirlpool held equity positions in 3 Brazilian companies: 1. Multibras which in 1994 merged 3 sister appliance makers

into 1 organization and with annual sales of 800 m held market leader position.

2. Embraco, one of world’s largest manufacturers of compressors and exported to 50 countries on four continents

3. Brasmotor S.A., which was a holding company with a majority interest in Multibras and a minority interest inEmbraco

4. Whirlpool claimed to be second highest recognition brand after Cola-cola

5. 1992: took over SAGAD, Philips’ white goods operation in Argentina which except for Brazil and Argentina, this South America Sales Company was responsible for sales throughout the region

Whirlpool Latin American operations were part of the Whirlpool Overseas Corporation (WOC), formed in 1990 as a wholly-owned subsidiary to conduct marketing and industrial activities outsideNorth America and Europe and included:

US Export Sales, Overseas Business Group acquired from Philips inthe WIBV transaction, and 3 wholly-owned sales companies in HK, TH and Aus

Industrial activities included technology sale and transfer, kit and component sales, joint venture manufacturing and project management for affiliates

WOC key responsibilities also included feeding new technologies from Whirlpool bases in N/A and Europe to its other units; ensuring optimal brand positioning in each country and analyzing specific appliance design for their suitability to various markets

1993: Whirlpool decided that its global business interest would be better served by establishing two standalone business units, one for Latin America call LAAG and the other the Whirlpool AsianAppliance Group for Asian operations

Asian Appliance Group

- exported home appliances to Asia over 30 years from US

- Due to acquisition of Philips’s appliance business, access was broadened to Asian markets

- Whirlpool strategy: 5 Ps – Partnerships, Products, Processes, People, Pan-Asian approach.

- Strategy in 3 phases: start-up, building and market leadership

- Whirlpool market researched and decided to base its foray on the so called T-4 i.e. refrigerators, clothes washer, microwave ovens and air conditioners.

- Refrigerator 1st appliance brought when income rose- Clothes washer came next- Air-conditioners important because of heat and humidity in

much of this region- Microwave had become an essentially global appliance with

its features and design- Focus on China and India (most populous countries)- Market entry supposed to occur through joint ventures

followed by “Greenfield” plants- Planned to use pan-Asian platform, modified for specific

areas to meet regional preferences- Only “Whirlpool” would be used since market was not

considered mature enough to allow for a multibrand approach- 1987: joint venture in India with Sundaram-Clayton, Ltd

called TVS Whirlpool, Ltd which produced semi-automatic clothes washers, the so-called “World Washer” and twin-hub washers for Indian market

- 1993: Whirlpool Asian Appliance Group – regional headquarters established in Tokyo and later Singapore whichalso became home of a pan-Asian marketing, product development and technology center.

- Asian market further sub-divided into 3, then 4 operating regions: Greater China, based in HK (Peoples Republic and HK), South Asia, based in Delhi (India Pakistan and surrounding markets), North Asia, based in Tokyo (Japan,

Korea, Philippines and Taiwan) and Southeast Asia, based inSingapore (Aus and New Zealand)

- 1994: investment jumped to over 200 m- Jointed venture with Teco Electric & Machinery Co. Ltd to

market and distribute home appliance in Taiwan as an insider

- 1995: acquired controlling interest in Kelvinator of India,Ltd, one of the largest manufacturers and marketers of refrigerators in India

- Same time acquired controlling interest and d2d management of its existing India-based venture, TVS whirlpool, Ltd

- China became the center of a series of joint ventures combines with plant expansions and upgrades. Moves marked important milestone as they completed the T-4 strategy in China

- Long term strategy: creation of technology center in Singapore where new products would be designed for the Asian market and which could tap into Whirlpool’s global expertise. As in Latin America, the Worldwide Excellence System was adapted to regional circumstances and provided astrong integrating mechanism.

- To accelerate WES, Whirlpool assembled global product teams, offered foreign assignments within global organization to key personnel and hire aggressively within the region.

ORCHESTRATING THE STRATEGY GLOBALLY

- Despite being a global force by 1995, Whirlpool’s US exports were less than 10% of gross revenues. The company recognized the need to lay groundwork for utilizing effectively its experience worldwide in product technology and manufacturing processes and transferring it quickly to wherever needed and thereby leverage its global presence togain sustainable competitive advantage. For that, a number of projects and organization functions and arrangement wereput in place:

Global Business Units

- 2 products groups managed and organized on a global platform.

- The Microwave Oven Business Unit: managed microwave oven production and development activities globally with manufacturing and product development facilities in

Norrkoping, Sweden, and a second, low-cost source in development in Shunde, China. (Whirlpool claimed its top five microwave oven manufacturers

- 1995: Global Air Treatment Unit formed with a growth strategy that anticipated quadrupling of volume in the first half of 1996 relative to the same period in 1995

- Whirlpool Financial Corporation (est. 1957) served manufacturers, retailers and consumers in the US, Canada and Europe. With assets exceeding 1.9b in 1995, provided inventory and consumer financing to support product sales from point of manufacture through the market channel to consumer

World Washer

- To create a lightweight compact washer with few parts that could be produced in developing countries where manufacturing technology was not advanced and could be soldat a price that put it within reach of many more householdsthan the designs marketed in the industrialized world

- Goal: to develop a complete product, process and facility design package versatile enough to satisfy conditions and market requirements in various countries but with low initial investment requirements. Same time, to establish a beachhead especially against the Far Eastern rivals.

- Common design was envisaged for India, Brazil and Mexico - It proved necessary to develop 3 slightly different

variations instead of replicating the original version for all 3 markets

- Reason constituted to factors such as material cost, labor and overhead costs differences

- Goals were identical – minimizing facility investment and avoiding big finish systems and welding stations that required extensive machinery for materials cleanup and environmental safety

- Brazil: plant designed as a creative convection cooling system to address high humidity

- India: new facility built in Pondicherry, just 12 deg northof the equator

Worldwide Excellence System

- WES was the company blueprint for quality, customers and continuous improvement worldwide

- Combined ISO 9000, Deming approach in Asia, Baldrige systemused in US

- WES used a point system to measure success of implementing the program

- WES has 7 categories- Whirlpool people and leadership categories described the

involvement of people at all levels in moving the corporation to excellence

- Fact-Based Management, Strategic Planning, and Quality of Process and Products outlined the major internal processes for achieving excellence. Measurement and Results explainedthe methods used to determine what customers expected and to assess how well they were being satisfied. The continuous monitoring of Customer Satisfaction was used forunending improvement of activities and processes

Technology Organization

- Goal: to develop advanced innovative products and move themto market quickly and competitively

- Early success: 1991 when VIP Crisp microwave oven was introduced and quickly became Europe’s best-selling model

- Global Procurement organization bought all materials and components needed for production facilities

- Centers based in US, Italy and Singapore bought finished products, commodities sourced on a regional or global basis, and standardized parts and components

- Most other parts and materials sourced from suppliers located near the production facilities where they were used

- In developing countries: this implied educating and assisting local suppliers in attaining Whirlpool standards

- Corporate Technology Development group developed product and process technology capabilities and provided technical services to Whirlpool businesses

- Technology development activities were geographically dispersed in Europe, Asia and North America

- Advanced Product Concepts unit looked beyond current product needs for appliance Whirlpool was making i.e. developing new product concepts through market research

- Advanced Manufacturing Concepts team brought new manufacturing processes and identify and developed simulation tools and best practices to be used on a global basis

- Strategic Assessment and Support identified and evaluated non-traditional new product opportunities in cooperation with other units of Whirlpool. It also established corporate policy regarding product safety and computer-aided design and manufacturing; addressed environmental andregulatory issues and intellectual property rights

RACE FOR GLOBAL DOMINANCE

- Everyone was pursuing similar strategies in establishing global position of strength.Electrolux - Expanded using pan-European and local brands as well as joint venture in China to manufacture water purifiers, compressors and vacuum cleaner plant. Same time acquired major holdings in production facilities for refrigerators and washing machines. In TH, IA, MA and SG – developed network through retailers and in Latin America, the company acquired a minority interest in Brazil’s secondlargest white goods manufacturer, Refripar

- Bosch-Siemens Hausgerate GmbH (BSHG) – alliance with Maytagto sell distinctively European designs, acquired major interest in Wuxi Little Swan Co., a leading manufacturer oflaundry appliances. In Brazil, BSHG brought Continental 2001, a large appliance producer. In Eastern Europe,

completed the construction of a washing machine factory in Lodz, Poland

- GE – focus effort in India, China, SEA and South America. Same time strengthening alliances in Mexico and India, and developed a number of new products specifically for global markets

EPIOGUE

- Fiscal year 1995: Whirlpool reported per share earnings of $2.80, up from a year earlier but still below the 1993 high. Mainly due to:

- North America: product shipments had declined by 1.4% and operating profits had dropped by 16%

- Europe: rising material costs, fierce competition, and a shift by consumers to cheaper brands and models reduced Whirlpool’s shipment by 2% while industry grew by 1%

- Latin America: volume was up thanks to robust growth in Brazil compare to Argentina where industry shipments plummeted by as much as 50% due to Mexican collapse

- Asia: reported an operating loss due to continuing expansion while shipments increased by 193% and revenues by83% respectively.

David Whitham said that the company was ahead of schedule in its restructuring effort in Europe and North America and he anticipated significant improvements in operating efficiency for 1996. Evidently Whirlpool felt good about its position in the industry, in spite of the lackluster short-term results