SWOT, STEEP and BCG1 Analysis of Whirlpool

Based in Benton Harbor, Michigan, Whirlpool is the world’s largest home appliance manufacturer. With annual sales of over $20 billion and nearly 50 manufacturing and research facilities worldwide, the company sells to consumers in more than 150 countries. Among its many major brand names are Whirlpool®, KitchenAid®, Brastemp®, Bauknecht®, and Consul®. The company’s broad vision is to have the company’s products in “every home, everywhere.”

With more than 80,000 employees and over 70 manufacturing and technology research centers worldwide, Whirlpool transformed itself from a regional manufacturing and trade-focused business into a global enterprise. The success of Whirlpool’s global business is driven by its ability to truly understand and fulfill customer needs, develop highly innovative solutions, and continuously improve productivity and quality. Also, Whirlpool is the number one household appliance brand in Europe and has been selected as a Superbrand in the UK at the beginning of 2010.

STEEP Analysis

The STEEP analysis is a tool that helps us compare how the external environment (as down turns in the economy, lack of investment in innovation etc.) will impact on given company's strategic plan and it can remain competitive. When used correctly, the STEEP analysis will offer to decision makers the information which should be used to improve existing strategic plans.

The five elements of a STEEP analysis are reflected in the name itself, as following:

• S – Social: The social element of the external environment takes into account the aspects that describe society as a whole. Some of the key elements that organizations must deal with in each market are: demographics, lifestyles, religion, education, age distribution of the population etc.

Whirlpool Corporation has seven employee run diversity networks that are involved with business, employee, and community projects to address the needs of the groups they represent. These diversity networks are The Women's Network (TWN), the Native American Network (NAN), the Whirlpool African American Network (WAAN), The Pride Network (PRIDE), the Whirlpool Asian Community (WAC), the Whirlpool Hispanic Network (WHN), and the Young Professionals Network (YP). One of their strategies is to be more customers focused.

• T – Technological: Industries that rely on technological advances to generate new products and services are prone to be affected by rapid changes in the environment. That’s why we have to analyze, to monitor and measure the effects the changes within the technological environment will have on the company’s product-development strategies.

The company’s technology goal is to develop advance, innovative products and move them to market quickly and competitive. Several functions were organized to achieve this goal, such as:

- Global Procurement organization: bought and organized the distribution of all materials and components needed by appliance production facilities.

- The Corporate Technology Development: develop product and process technology capabilities and provided technical service to Whirlpool business.

- An Advance Product Concept unit: develop new product concepts that were identified through market research.

- The Advance Manufacturing Concepts team: bring new manufacture process, identify and develops simulation tools and best practices to be used on global basis.

- Strategic Assessment and Support organization: identify and evaluated non-traditional new product opportunities.