STRATEGIC MANAGEMENT

Case Study Presentation

On
Maytag Corporation
J. Devid Hunger
Presented By:

Zehra Abdul Aziz

Waqar Ameen
Nauman Uddin Khan
Syed Ahmed Ali

Industrys Dominant Features

o Market Growth Rate And Size

The market growth rate was very high at its early maturity but
now it is on it maturity stage so the growth is steady but the size
of market is much expanded due to global competition

o Scope Of Competitive Rivalry

There is big scope of competitive rivalry because the big
companies in this industry has already doing business globally its
mean they are already mature at their parent country so the
competitions in this country will increase.
o Number Of Rivals

There is several numbers of rivals in this industry because

there are lot of global regional and local companies is in this
industry.

o Learning And Experience Curve

The existing companies was available in the market from1980s so they are more experienced and skills as compare to new
rivals. They improving their R & D and cost efficient through
learning and experience curve.
o Economies of scale

All of the major home appliances manufactures were heavily

engaged in renovating and building production facilities improve
quality and reduced Labor and material cost to gain Economies of
scale.
Pace of technological change was very high companies
were competing through technology they introduce SMART
products.

o Pace of technological change

o Product innovation

U.S appliances manufactures were moving towards a stronger

productoriented market. They designed product for customer
satisfaction
as per the need of customer. They Introduce energy saving
appliances
Whirlpool GE Maytag and other company design their product as
energy saving and efcient uniquely differentiated

o Buyers needs and Requirements

US buyers needs sophisticated machinery which they can

present in their small threats, they also need full kitchen solution
which is lled by the Global companies.
o Degree of Product Differentiation

As this Companies Focus on Differentiation, Then there

technology became same and they lost their differentiation and
the price competition increases.
o Vertical Integration

AB Electrolux, Siemens, Whirlpool, form the B2B electronic market

place for European Households Appliance maker, Distributor and
retailers for the convenience of Dealers

Porters Five Forces Acting On

Industry

The Major Drivers Of Change

First Driver :
Product Innovation
In 2002 U.S appliances manufactures were moving towards a
stronger product-oriented market. They designed there product for
customer satisfaction and as per the need of customer. They
introduce energy saving appliances. Whirlpool, GE, Maytag and other
company design their product as energy saving and efficient and
uniquely differentiated. A survey of 500 residential found that
roughly 25% of the population said that they would be willing to pay
15% to 25% above the standard price for higher energy saving
appliance.

The Major Drivers Of Change

(Cont)

Second Driver:
nological Change And Manufacturing Process Innovat
In 2002 manufacturer were introducing SMART appliances
with increasingly sophisticated electronic controls and self
diagnostic features. Smart Appliances were being connected
to the internet. These appliances could call for service,
download programs, contact security providers in case of gas
leaks or re, pay utility bills, and be programmed remotely to
start and stop when needed.

The Major Drivers Of Change

(Cont)

Third Driver:
Changes in cost and
efficiency

The basis for effective competition had been producing

the fewer basic components necessary in the most
efficient plants. Although individual designs might vary,
the components inside the appliances were becoming
more universal and were being produced highly
automated plants, using computer-integrated
manufacturing process. Fewer parts mean simple
manufacturing and less chance of break down. The result
was lower manufacturing cost and higher product quality.

The Major Drivers Of Change

(Cont)

Forth Driver:
Increase in Globalization of
the industry:
The industry diversies globally in 2002, the Korean and
Japanese company were come in the industry they were
broadly diversied and well established globally and U.S
markets become globalize.

Strategic Group Map

Key Success Factors For The

Industry

Technology Related:
It will help in introducing innovative product according to the demand of
the customer, and it will lower down production cost and improve
quality of the product.

Manufacturing Related:
It plays a great role as the entire major home appliance manufacturers
were heavily engaged in renovating and building production facilities to
gain scale of economies by reducing labor costs and manufacturing
cost.

Distribution Related:
Distribution plays a vital role in success because when and where to
market is very critical in the home appliance industry. It product is not
distributed properly then the company will lose buyers. Firms must have
strong presence in the distribution channel.

Key Success Factors For The Industry (cont)

Product Innovation:
Product innovation is one of the major success factors in the home
appliance industry. Different companies coming with different and
innovative product like automatic washing machine, 2 door refrigerator,
stylish and compact appliances that can be put in the kitchen etc.

Marketing Related:
The key component of marketing related factor of key success is Brand
Name. Brand name plays an important role in selecting the product.
Whenever consumer reached to a retailer he always has brand name in
his mind especially in home appliances, which is created through
experience.

Competitive Profile Matrix

Weightage

Whirpool
Company
Rating

Whirpool
Company
Weighted
Score

GE
Company
Rating

Technology
Related:

0.4

1.6

1.6

1.6

Manufacturi
ng Related:

0.2

0.6

0.6

0.6

Distribution
Related:

0.2

0.6

0.6

0.4

Product
Innovation:

0.1

0.4

0.3

0.3

Marketing
Related:

0.1

0.3

0.2

0.4

1.00

3.5

3.3

3.3

Strategic
Factors

Total

GE
Maytag
Maytag
Company
Company
Company
Weighted
Weighted
Rating
Score
Score

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