International marketing assignment

Second, industry profit margins in the region are traditionally much lower than those of manufacturers in the Western countries. The reason for this was cultural: historically the industry was organized to do business in individual national markets, an approach with inherent cost inefficiencies. Now, however, Whirlpool believes that it can use its unique regional position to deliver greater home-appliance value to its customers and in turn establish h a competitive edge for itself.

A strategy to do so suggests that the opportunity to eliminate costs which do not add to consumers’ perceptions of value- ND invest some of the savings in to product and service characteristics that do add value?? will be substantial. One of the key strategies adopted by Whirlpool was the purchase of the appliance business of Philips Industries, the large Netherlands-based NC, thereby obtaining control over Philips’ European white goods production facilities and distribution systems.