CONSUMER DURABLE

CHAPTER:-1

Industrial/Sectoral scenario

ANNEXURE:-

 History/ Evolution of the sector

 Overall working of the sector
 Challenges faced by that sector in India
 SWOT analysis
 Major player in the sector
 GDP contribution by the sector
 Some facts/ figure regarding that sector (optional)
 Global Perspective
 Summary

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 INTRODUCTION:-
The Consumer Durables industry consists of durable goods and appliances for domestic
use such as televisions, refrigerators, air conditioners and washing machines. Instruments
such as cell phones and kitchen appliances like microwave ovens are also included in this
category. The sector has been witnessing significant growth in recent years, helped by
several drivers such as the emerging retail boom, real estate and housing demand, greater
disposable income and an overall increase in the level of affluence of a significant section
of the population. Consumer durables refer to those consumer goods that do not quickly
wear out and yields utility over a long period of time. The consumer durables industry
can be broadly classified into two segments: Consumer Electronics and Consumer
Appliances. Consumer Appliances can be further categorized into Brown Goods and
White Goods. 

 EVOLUTION OF THE INDIAN CONSUMER DURABLE SECTOR:-

Evolution of consumer durables sector marked from pre-liberalization period with closed
market, increased product availability, increased media penetration and advertisements.
Liberalization of markets since 1991 added more importance to this sector by allowing
global players such as Samsung and L.G. Since then the focus of consumer durable
market shifted from promotion to product innovation. Increased availability and
affordability of consumer finance also provides impetus to the growth of this sector.
Indian companies such as Videocon and Philips gained global identity. Consolidation of
market share by different companies led to increasing penetration of high end products
like AC and Microwave ovens. Both Indian and foreign companies are very active in this
field by innovating different models suitable to the preferences of urban and rural
consumers. The growing importance of consumer durable goods among Indian
consumers is a good indicator of high growth rate of this sector. The improving living
standards have made home washing machines an essential consumer good in the Indian
market. The changing environmental dynamics, urbanization and rising income levels are
driving the growth of this segment that was once inhibited by the high price point. The
Indian refrigerator market was worth INR 41 billion in 2009 and is projected to reach
INR 223billion by 2020. Although the market has been growing, it remains
underpenetrated. Market penetration of refrigerators in India is 21% as compared with the
global average of 85%.With the continuous inflow of disposable income and the
advancement of technology, the need for the varied consumer durable goods are

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 increasing. This in turn is leading to a strong competition among the different consumer
durable brands available in the nation. The rural and urban market of consumer durables
has been growing at a rate of around 15 % on an average.

FIG: 1.1

 List of main companies producing consumer durable goods in India:

SR. NO COMPANY PRODUCT
1 VIDEOCON INDUSTRIES TELEVISION,
REFRIGERATOR, ETC
2 LG (LIFE GOOD) AIRCONDITIONER,
REFRIGERATOR,
TELEVISION, WASHING
MACHINE
3 WHIEPOOL INDIA REFRIGERATOR, WASHING
MACHINE
4 BAJAJ ELECTRICALS GEYSERS, ELECTRIC FANS
5 HAVEELS AIRCONDITIONER,
REFRIGERATOR,
TELEVISION, WASHING

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 MACHINE, FANS, GEYSERS
6 BLUE STAR AIRCONDITIONER
7 PANASONIC TELEVISION, CD/DVD
PLAYER
Table no: 1

 OVERALL WORKING OF THE SECTOR OF CONSUMER

DURABLE:
The consumer durables sector includes consumer appliances and consumer electronics.
The consumer appliances sector includes air conditioners, refrigerators, washing
machines and sewing machines, electric fans, cleaning equipment, microwave ovens and
other domestic appliances. Consumer electronics include televisions, audio and video
systems, electronic accessories, CD and DVD players, digital cameras and camcorders.

By 2025, it is expected that India is will become the fifth largest consumer durables

market globally. The consumer durables industry is projected to double at 14.8% CAGR
to reach approximately USD 12.5 billion in FY15 from USD 6.3 billion in FY10.

At present, more than 77% of households in urban India have a television, 33% own a

refrigerator, 17% have an air cooler and 13% own a washing machine. Air conditioner
penetration in India compares unfavorably with other developing markets, especially
Asian countries, along with the other consumer durables categories within the country.

The improving living standards have made home washing machines an essential
consumer good in the Indian market. The changing environmental dynamics,
urbanization and rising income levels are driving the growth of this segment that was
once inhibited by the high price point. The Indian refrigerator market was worth INR 41
billion in 2009 and is projected to reach INR 223 billion by 2020. Although the market
has been growing, it still remains underpenetrated. Market penetration of refrigerators
in India is 21% as compared with the global average of 85%.

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 The Indian television market is shifting from the traditional cathode ray tube (CRT)
technology to LED, LCD and Plasma televisions. Some leading players have officially
stopped the production of CRT televisions and are now concentrating on LED TV's.
While in 2012 CRT sales stood at 7 million units and flat panels stood at 5 million units,
in 2014 CRT sales were only 2.5 million units while flat panel sales stood at close to 9
million units. It is expected the TV industry revenue will reach INR 130,500crore by
2020.TVs form the next largest imports in the consumer durables sector behind air
conditioners in India.

 CHALLENGES FACED BY CONSUMER DURABLE SECTOR IN

INDIA:
 Increasing completion–  Indian manufacturers face strong competition from
Chinese and other SE Asian counterparts which have a huge supply base and installed
capacities. Moreover, China government provides numerous subsidies for manufacturing
unit development which the Indian government is unable to match.

 Capital intensive nature of business - Cost of production in India is higher as

compared to China and other SE Asian countries due to high finance cost. Moreover,
given the frequency changing energy efficient norms manufactures will need to invest
substantial amounts for products with high rating. The cost of capital at 12% - 14% is
much higher than global average of 5% - 7%.

 Limited scale and quality– Most of the suppliers of raw materials and component
in India do not have scale to cater to the substantial demand in the industry, making them
less cost competitive as compared to the import. Moreover, the quality of inputs is not as
competitive to Chinese or other SE Asian counterparts. This has led various global major
to scale down operation in India.

 Tax and duty structure– Indian taxation system is usually complex, especially
where indirect taxes are concerned. While income tax, excise and customs duty are set by
the Central Government, state and municipalities also levy their own taxes.
 Infrastructure deficiency– India‘s spent on infrastructure was only 7.2% of its GDP
in 2012.

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W
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The basic infrastructure for any industry comprises good roads, power, water,
telecommunication, finance raw materials, components and logistics. In India, these
facilities are not up to the mark even in established industrial estates.


SECTOR:
SWOT ANALYSIS OF CONSUMER

 STRENGTH
FIG: 1.2

Higher Growth. Key drivers being Urban and Rural.

DURABLES

Advancement of technology which gives the company’s ability to introduce new

product and new product features.

Government policies in favour of industry includes infrastructure development,

reduction in excise duty and so on.
 WEAKNESS
Supply continues to outstrip Demand. Demand cyclical and seasonal.

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 Volatile performance of the agricultural sector has a negative impact on demand.
The sectors performance is highly dependent on monsoon and reforms, which has
failed often.



OPPORTUNITY
Diversification. Developing new products for new markets.
Easy availability of finance has stimulated consumer to buy durables.
Changes in consumer outlook from spend now-save later mentality leading to
high disposable income.
 THREAT
Dozen companies operating in the
white goods segment. Prices would
continue to remain depressed and
margins will be under pressure.
Threats of cheaper imports from China
and other South East Asian countries.

 MAJOR PLAYER IN THE SECTOR OF CONSUMER

DURABLE:

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COMPANY PRODUCT
CATEGOR
Y
ACs,
REFREGE
RATORES,
SPECIALL
Y
COLLING
PRODUCT
INCLUDIN
G

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viii
CHAMBER
& COLD
STORAGE
ACs &
COLLING
EQUIPME
NT.
TVs,
AUDIO-
VISUAL
SOLUTIO
N,
COMPUT
ERS,
MOBILE
PHONES,
MICROW
AVE
OVENS,
VACCUM
CLEANE
RS &

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ACs.
TVS,
DVD
PLAYERS
,
MICROW
AVE
OVENS,
WASHIN
G
MACHIN
ES &
POWER
BACKUP
SOLUTIO
NS.
ACs,
ELECTRI
C WATER
HEATER
S, FANS,

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CABLES
& WIRES,
MOTORS,
COLLERS
.
FANS,
ELECTIC
WATER
HEATER
S,
COLLERS
,
MICROW
AVE
OVENS,
REFRIGE
RATOR.

TABLE NO: 2

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 GDP CONTRIBUTION BY THE CONSUMER
DURABLE SECTOR:
Indian appliance and consumer electronics (ACE) market
reached Rs. 76,400 crore (US$ 10.93 billion) in 2019.
Appliances and consumer electronics industry is expected
to double to reach Rs. 1.48 lakh crore (US$ 21.18 billion)
by 2025.
According to Retailers Association of India (RAI), sales of
consumer electronics increased by 2% in September 2020
and 8% in October 2020, as compared with same months in
the last year. Electronics hardware production in the
country increased from Rs. 4.43 trillion (US$ 72.38 billion)
in FY19 to Rs. 5.47 trillion (US$ 89.38 billion) in FY20.
Demand for electronics hardware in India is expected to
reach US$ 400 billion by FY24.
There is a lot of scope for growth from the rural market
with consumption expected to grow in these areas as
penetration of brands increases. Demand for durables like
refrigerators and consumer electronic goods are likely to
witness an increased demand in the coming years,

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 especially in the rural areas as the Government plans to
invest significantly in rural electrification.
Growing awareness, easier access, and changing lifestyle
have been the key growth drivers for the consumer market.
The Government of India's policies and regulatory
frameworks, such as relaxation of license rules and
approval of 51% Foreign Direct Investment (FDI) in multi-
brand and 100% in single-brand retail, are some of the
major growth drivers for the consumer market. According
to the Department for Promotion of Industry and Internal
Trade (DPIIT), Between April 2000-September 2020, FDI
inflow in the electronics sector stood at US$ 2.94 billion.
On November 11, 2020, Union Cabinet approved the
Production-Linked Incentive (PLI) scheme in 10 key
sectors (including electronics and white goods) to boost
India’s manufacturing capabilities, exports and promote the
‘Atmanirbhar Bharat’ initiative.

 GLOBAL PERSPECTIVE:

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Increasing global demand for durable goods prevents the
decoupling of economic growth from natural resource use
required to achieve sustainable consumption and
production. Presently, most consumers in the United
Kingdom (UK) exhibit a strong preference for purchasing
new durable goods. Therefore, short-to-medium term
strategies that seek to engender sustainable consumption of
durable goods should focus on encouraging consumers to
choose longer-lasting, reliable products. This paper outlines
the importance consumers place on six purchasing factors
(appearance, brand, guarantee length, longevity, price and
reliability) across eighteen categories of durable goods.
Data was collected from a UK national survey of consumer
satisfaction with product lifetimes (n=2207). The research
identified that most consumers consistently emphasizes the
importance of longevity and reliability when purchasing
new products. If consumer preference for longer-lasting,
reliable products can be translated into purchasing
behavior, progress can be made towards engendering
sustainable consumption, enacting the circular economy
and reducing national ecological footprints.

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1. Introduction:
Life cycle engineering (LCE), with its emphasis on
reducing the detrimental economic, environmental and
social impacts of goods and services across their
lifetime. Has a fundamental role to play in attainment of
many of the United Nations Sustainable Development
Goals (UNSDGs). Sustainable Development Goal
twelve, the promotion of sustainable consumption and
production . Is of particular interest to LCE, as increases
in the lifetime of durable goods present an opportunity to
reduce the detrimental impacts of rampant consumption
in increasingly ‘throwaway societies’. Increasing the
lifetime of products by developing more durable and
reliable goods. Ensures critical raw materials are used
more efficiently and resource loops are slowed.
2. Meeting challenges to sustainable consumption
and production with longer-lasting products:
The design, manufacture, distribution, use and
disposal of durable goods accounts for a significant
proportion of industrialized nations’ energy and

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 material demand. Durable goods are defined in the
United Nations’ System of National Accounts 2008
as products “that may be used repeatedly or
continuously over a period of more than a year”.
However, decreasing lifetimes of durable goods
across the globe, coupled with increasing global
populations and affluence are placing ever-
increasing demands on the planet’s resources. If it
is the aspiration of LCE to operate within
biophysical planetary boundaries while furthering
human prosperity and social equity, then efforts
towards mitigating the detrimental economic,
environmental and social impacts of short-lived
durable goods must be addressed.
3. Methods:
The results reported in this paper were collected as part
of a national online survey into consumer satisfaction
with product lifetimes across a range of durable goods
conducted in February 2017 in the United Kingdom

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(UK). Eighteen product categories, encompassing an
exhaustive range of durable goods, were formulated from
a review of the United Nations’ Statistics Division’s
Classification of Individual Consumption According to
Purpose and Mintel academic market research
intelligence. To reduce the impact of survey fatigue, each
participant only answered questions on up to nine of the
eighteen product categories. A Likert-type scale, with
options ranging from ‘not at all important’ to ‘extremely
important, was designed to assess the relative importance
that participants assigned to five-to-six purchasing
factors: Appearance, brand, guarantee length, longevity,
price and reliability (Appendix A). The purchasing
factors selected for this study were refined from research
into consumer purchasing preferences conducted by
Knight et al. A pilot study was conducted to select the
most appropriate purchasing factors to use across the
entire range of product categories under investigation.
Ultimately, the six purchasing factors outlined above
were found to be the most suitable. Reliability was only
assessed for products with complex electrical, electronic

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 or mechanical parts (i.e. bicycles, cars, electronic goods,
jewellery, clocks and watches, large kitchen appliances,
power tools for the home and garden, small household
appliances, and space heating and cooling products).
Demographic information, such as age and gender, was
also collected from survey participants to inform the
sampling strategy.

 SUMMARY:
The analysis reveals that the use of consumer durable
goods increased considerably in recent years. The

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increasing consumer electronics market in India presents an
attractive opportunity to manufacturers. Most of the global
corporations are looking at India as regional hub for
manufacturing and sales to cater to not only Indian market,
but SAARC and Middle East &African markets as well.
People are more and more aware of the products available
in the market. The consumer durables industry in India is
set for sustained growth over the long term, fueled by
favorable consumer demographics, overall growth in
services and industrial sectors and infrastructure
development in suburban and rural areas. India can emerge
as the future manufacturing hub for the region, provided
there is adequate focus and support from the Government
for this sector. Several Indian and MNC players are looking
to strengthen their presence in India to leverage this
opportunity. Success in the long-term will require firms to
develop a wide and robust distribution network,
differentiate their products in areas of relevance to the
consumer and innovate in the areas of promotion, product
financing, etc. The product and approach to market need to

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be customized to suit the unique needs of the Indian
market.

CHAPTER-2
COMPANY PROFILES

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ANNEXURE:-

 NAME & LOCATION OF COMPANY

 NAME & LOCATION OF OTHER BRANCHES
 YEAR OF ESTABLISHMENT
 BRIEF HISTORY
 NAME OF FOUNDER AND PROMOTERS
 VISION STATEMENT
 MISSION STATEMENT AND VALUE
STATEMENT
 ORGANIZATIONAL STRUCTURE / HIERACHY
(IF AVAILABLE) (ALONG WITH DIAGRAM
ALSO EXPLAIN THE SAME IN BRIEF)
 CONTROLLING SYSTEM (IF AVAILABLE)
 SWOT ANALYSIS OF THE COMPANY
(INDIVIDUAL)
 ANY OTHER SPECIFIC DETAIL.
 NAME:- L.G.

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 LOCATION OF
COMPANY:- Its
Headquarters are in L.G Twin
Tower building YEOUID-DONG Yeingdeungpo District
Seoul, South Korea.
 NAME:- L.G
 LOCATION OF OTHER BRANCHES:-
KOLKATA, PUNE, ETC.
 YEAR OF ESTABLISHMENT:- The L.G Electronic
Company was established on October 1958 (As LG gold-
star) January 1995 (As LG Electronic) (Reincorporated in
2002).
 BRIEF HISTORY:-
 HISTORY OF L.G
 1958–1960s
In 1958, LG Electronics was founded as Gold Star .
It was established in the aftermath of the Korean
War to provide the rebuilding nation with
domestically-produced consumer electronics and
home appliances. The start of the country's national

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 broadcasting that created a booming electronics
market and a close relationship it quickly forged
with Hitachi helped Gold Star to produce South
Korea's first radios, TVs, refrigerators, washing
machines and air conditioners. Gold Star was one of
the LG groups with a brethren company, Lak-Hui
(pronounced "Lucky") Chemical Industrial Corp.
which is now LG Chem and LG Households. Gold
Star merged with Lucky Chemical and LS Cable on
28 February 1995, changing the corporate name to
Lucky-Gold star and then finally to LG Electronics.
 1970s–1990s
LG Electronics earned US$100 million in revenue from
exports for the first time in its history. Rapid growth by
globalization saw the company establish its first overseas
production, based in the United States, in 1982. In
1994, Gold Star officially adopted the LG Electronics
brand and a new corporate logo. In 1995, LG Electronics
acquired the US-based TV manufacturer Zenith and
absorbed it four years later. Also in that year, LG
Electronics made the world's first CDMA digital mobile

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 handsets and supplied Ameritech and GTE in the US, the
LGC-330W digital cellular phone. The company was
also awarded UL certification in the US. In 1998, LG
developed the world's first 60-inch plasma TV and
established a joint venture in 1999 with Philips –
LG.Philips LCD – which now goes by the name LG
Display. In 1999, LG Semiconductor merged
with Hynix.
 2000s–present
In order to create a holding company, the former LG
Electronics was split off in 2002, with the "new" LG
Electronics being spun off and the "old" LG Electronics
changing its name to LG EI. It was then merged with and
into LG CI in 2003 (the legal successor of the former LG
Chem), so the company that started as Gold Star does
not currently exist.
LG Electronics plays a large role in the global
consumer electronics industry; it was the second-largest
LCD TV manufacturer worldwide as of 2013. By 2005,
LG was a Top 100 global brand and recorded a brand
growth of 14% in 2006. As of 2009, its display

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manufacturing affiliate, LG Display, was the world's
largest LCD panel manufacturer. In 2010, LG
Electronics entered the smart phone industry. LG
Electronics has since continued to develop various
electronic products, such as releasing the world's first 84-
inch ultra-HD TV for retail sale.
On 5 December 2012, the antitrust regulators of
the European Union fined LG Electronics and five other
major companies (Samsung, Thomson since 2010 known
as Technicolor, Matsushita which today is Panasonic
Corp, Philips and Toshiba) for fixing prices of
TV cathode-ray tubes in two cartels lasting nearly a
decade.
On 11 June 2015, LG Electronics found itself in the
midst of a human rights controversy when The
Guardian published an article by Rosa Moreno, a former
employee of an LG television assembly factory.
At the end of 2016, LG Electronics merged its German
branch (situated in Ratingen) and European headquarter
(situated in London) together in Each born, a suburb
of Frankfurt am Main.

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 In March 2017, LG Electronics was sued for its
handling of hardware failures with recent smart phones
such as the LG G4.
Koo Bon-joon, who was the CEO and the current vice
chairman of LG Electronics, was replaced by his nephew
Koo Kwang-mo in July 2018 as CEO and vice
chairman. The move came after the succession of Koo
Kwang-mo as the chairman of the parent company LG
Corporation who succeeded his adoptive father and
Uncle Koo Bon-moo after Bon-moo died of a brain
tumor on 20 May 2018.
LG announced in November 2018 that Hwang Jeong-
hwan, who took the job as president of LG Mobile
Communications in October 2017, will be replaced by
Brian Kwon, who is head of LG's hugely profitable
home entertainment business, from 1 December 2018.
Also in 2018, LG decided to stop smart phone
production in South Korea to move production to
Vietnam, in order to stay competitive. LG said Vietnam
provides an "abundant labor force" and that 750 workers

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 at its South Korean handset factory would be relocated to
its home appliance plant.
On 5 April 2021, LG announced its withdrawal from
the phone manufacturing industry after continuous loss
in the market. In 2020, LG faced a loss of 5 trillion won
(US$4.4 billion).
 NAME OF FOUNDER:- Koo In-hwoi
 PROMOTER:- Ranjan Jain
 VISION STATEMENT:- LG Electronics constantly
researches and introduces a full range of innovative,
greener products and services, and continue to be a leader
in developing green innovations. LG Electronics will
realize Global Top Company in the EESH area through
corporate level EESH management system operation,
energy efficiency optimization, business site safety &
health, and employee health improvement activities. By
providing differentiated customer value, LG Electronics
will pursue earth environment preservation, sustainable
social advancement, and improve the quality of life for
stakeholders.

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 MISSION STATEMENT:- To create value for
customer. To respect human dignity. To become the best
in its class by winning customers’ acclaim a true leader in
the global market.
 VALUE STATEMENT:- Core Values Open
Communication. Controlling current self-pride,
communicating with speed & accuracy based on respect
for others through modesty, attentive
listening/consideration, and open minded
thinking/behavior.
 ORGANIZATION STRUCTURE
LG Electronics created a new global leadership structure
that it says will give its four operating companies more
autonomy “to respond quickly and decisively to market
conditions and business-growth opportunities.”
The four companies are home entertainment, mobile
communications, home appliance and air solution, and
vehicle components.
The company also announced new executive
appointments and said it is giving the executives “more

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independence and responsibility to facilitate rapid
decision-making.”
Separately, the company also said it “expects high-
growth areas such as automotive components, energy, IT
and B2B” to “drive more of LG’s growth going forward”
and complement its “ongoing leadership in televisions,
mobile devices and appliances.”
As part of the changes, CFO David Jung adds a new role
as corporate business administration officer overseeing
overseas sales and marketing, global production, and
quality management.
Jung has also been president, but EVP Lee Sang-bong,
head of LG’s energy business center, will be promoted to
president. He will also take on an expanded role as B2B
officer overseeing all of LG’s commercial sector
business, which includes professional displays,
commercial air conditioning systems, and energy
solutions.
Global sales and marketing officer Wayne Park will
assume the new title of EVP and head of LG’s European
operations, while EVP Brian Na will be responsible for

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 LG’s overseas sales and marketing, overseeing 47 sales
subsidiaries worldwide.
New representative directors of LG Electronics are Jo
Seong-jin, president/CEO of home appliances and air
solutions; Juno Cho, president/CEO of mobile
communications; and CFO David Jung.
In its fiscal third quarter, the company’s consolidated
sales fell 4.7 percent from the year-ago quarter to 14
trillion won ($12 billion), operating profit fell 37 percent
to 294 billion won ($251.5 million), and net income fell
38.5 percent to $106.8 million.
All appointments are effective Dec. 1, with promotions
taking effect on Jan. 1. The new organizational structure
will take effect when confirmed at a general meeting of
shareholders in early 2016.




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 FIG NO:2
 SWOT ANALYSIS OF L.G COMPANY
 STRENGTH:-Global Giant: LG Electronics controls
114 local subsidiaries worldwide, with roughly 82,000
executives and employees. LG is an MNC and is a well-
recognized brand which deals in white & brown goods. It
has always been known for its simple design, easy to use,
Innovative & reliable technology.

1. Extensive distribution system:- LG being a fast moving

consumer durable company makes its products available in

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 the markets through its distribution partners. Because of its
pull strategy, LG observes very fast stock rotation but also
has to use dumping of stocks to the channel partners. It uses
Glo-cal strategy (be global act local) to market its products.
2. Diversified products across the categories:- LG has a
huge product line and length across the product categories
both in white & brown goods.
3. High TOMA:- Through its continuous branding efforts,
sponsoring sporting & lifestyle events like ICC cricket
world cup, Formula one championship, soccer matches etc.
LG has created high visibility and thus is successful in its
branding efforts.
4. CSR activities:- LG has always been involved in
community work so as to involve the people in the co-
creation of the wealth.
5. Brand equity:– The long term presence of LG in the
market, along with their amazing product strategies, and
reliability on their products has ensured that LG has
a strong brand equity, and hence is able to survive in a
tough business environment.

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 WEAKNESSES

1. Management:- Due to its extensive presence in the white

& brown goods market they are not able to focus on every
single product category properly due to which they are
losing their market share in several products like T.V,
Refrigerator etc.
2. No Cash cows:– Samsung has amazing brand equity due to
its smart phones and smart TV’s. Similarly, most brands
have a super hit product which is a cash cow. However, in
LG, there is hardly any product which is a cash cow for
them. 

 OPPORTUNITIES:- 

1. Changing lifestyle:- Growing urban population, Rise

in disposable income, shift towards technological products
& migration from rural to urban areas are some of the
factors that will be the driving force for the home
appliances, electronics goods
2. Competitors helping in the adaptation of the new
technology:- Intense competition in the industry is helping

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 LG in making their products acceptable to the society. So
LG can leverage out benefit of this & can increase their
market share by considering competitors move.
3. Market Expansion:- By further penetrating to the
emerging markets will help the company in accelerating its
growth rate.
4. Strategic Partnership:- Till now LG has been involved in
the collaborative partnership with many companies. It is
making technology advances and identifying
business opportunities through various partnerships
relationships with some of the world’s leading companies.
Strategic alliance between corporations in which companies
with different infrastructures cooperate in the fast-
developing. 

 THREATS:-  

1. Intense rivalry within the industry:- Every company in

this industry is fighting hard to make their presence felt &
hold their market share. Majority of the players in the
industry follows red ocean strategy in order to kill the
competition which is affecting the industry as a whole.

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 2. Stagnant Urban demand dynamics:- Since more & more
companies are venturing out in the over competitive urban
market, there is little growth left in these markets, so over
dependence on these market will be riskier for the company
like LG.
3. Government Regulations:- Government policies relating
to use of innovative technology for energy & power
conservations is by & large affecting the industry & forcing
them to switch to renewable sources of energy.
4. Sluggish Economy:- Macroeconomic uncertainty,
Recession, un-employment etc. are the economic factors
which will daunt the industry for a long period of time.

 ANY OTHER SPECIFIC DETAIL

 SLOGANS

 "We Put People First" (1997–1999)

 "Digitally Yours" (1999–2004)
 "A Better Life with Digital" (2002–2004)
 "Life's Good" (1999–present in Australia and 2004–present
in the rest of the world)

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xxxv
 "Innovation for a Better Life" (2016–present)

Page
xxxvi
 NAME:- Bajaj Electricals
 LOCATION OF THE
COMPANY:-
Mumbai,Maharashtra,India.
 NAME:- Bajaj Electricals
LOCATION OF OTHER BRANCES:- Mumbai,
Pune, Lucknow, Ahembdabad, jaipur, Raipur,
Chandighar.
 YEAR OF ESTABLISHMENT:- 14 July 1938.
 BRIEF HISTORY:-
History of bajaj Electricals:-
Bajaj Electricals was incorporated on 14 July 1938 as
Radio Lamp Works Limited under the Indian Company
Act, 1913 as a Public company limited. On 1 October 1960
it was renamed to Bajaj Electrical Limited. In 1964, Match
well Electricals (India) Limited, ("Matchwell"), a
manufacturer of electric fans became a subsidiary of the
Company and subsequently, with effect from 1 July 1984,

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xxxvii
the business and undertaking of Match well was
amalgamated with the company.
In the financial year 1993–1994, Bajaj Electrical entered
into a joint venture with Black & Decker Corporation, US,
for the manufacture and marketing of power tools,
household appliances, and related accessories, through a
separate company named Black & Decker Bajaj Private
Limited, ("Black & Decker Bajaj").
During the financial year 1999-2000 Black & Decker Bajaj
became a 100% subsidiary of the Company upon the
Company acquiring a further 50% of the shareholding
thereof from Black & Decker Corporation, after which
Black & Decker Bajaj was renamed as Bajaj Ventures
Limited. However, in the financial year 2002–2003, the
Company divested 50% of its shareholding in Bajaj
Ventures Limited and Bajaj Ventures Limited ceased to be
a subsidiary of the company. In January 1998, the company
established a new manufacturing unit
at Chakan near Pune and commenced operations of
manufacturing of fans and die-cast components. The
production of fans at the manufacturing activities of the

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xxxviii
Match well unit also was gradually shifted to the Chakan
unit. In September 1999, Bajaj established and
commissioned a wind energy generation unit with an
installed capacity of 2.8 mega watts in the village of
Vankusawade in Satara, Maharashtra. The facility
continues to run profitably till date.
In the year 2000-2001 the Company set-up manufacturing
facilities including a fabrication unit and a galvanising
plant at Ranjangaon, near Pune for the manufacture of high
masts, lattice towers, and related products, and the said
manufacturing facilities commenced commercial
production with effect from 1 April 2001.
In November 2002, the Company entered into a technical
collaboration and brand licensing agreement with Morphy
Richards, United Kingdom, for the sales and marketing of
electrical appliances under the brand name of "Morphy
Richards" in India.
In the year 2005 the company entered into a Distribution
agreement with Trilux Lenze of Germany for high end
technical lighting.

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xxxix
 In the year 2007, the company acquired 32% of the share
capital of Star lite Lighting Limited, a company engaged in
the manufacture of Compact Fluorescent Lamps ("CFLs").
In 2012–2013, they have completely divested the stake and
association with Black & Decker Corporation, USA.
In 2015 Bajaj Electrical appointed On Ads
Communications as their sole creative partner.

 NAME OF FOUNDER:- Kamalnayan Bajaj

 VISION STATEMENT:- “Enhancing quality of life
and bringing happiness with sustainability”.
 MISSION & VALUE STATEMENT:- Innovation:
To continuously explore, develop, create and
implement new technology, processes, ideas and
products.
 Customer Delight: Proactively anticipating internal
and external customer needs and relentlessly working
towards exceeding their expectations.
 Empowerment: Creating conditions and enabling
people to take responsibility for enhanced

Page xl
 contribution towards personal and organisational
objectives.
 Team work: Believing in ‘One for all and all for
One’ thereby working together to exceed our
expectations in achieving organisational objectives.
 Integrity: Having complete integrity alignment in
what we feel, what we speak and what we do, thereby
demonstrating honesty and having strong moral
principles. Having firm belief in the reliability, truth
and ability of all stakeholders and company
processes.
 ORGANIZATIONAL STRUCTURE:- Bajaj
Electricals Limited (BEL), a globally renowned and
trusted company with a turnover of ₹4,987 crores
(FY 19-20) is a part of Bajaj Group. Bajaj Electricals
business is spread across – Consumer Products
(Appliances, Fans, Lighting), Exports, and EPC
(Illumination, Transmission Towers and Power
Distribution). With 20 branch offices and

Page
xli
approximately 500 customer care centers, we are
scattered in different parts of the country. We also
have a presence in premium home appliances and
cookware segments with brands like Morphy
Richards and Nirlep.

But to know Bajaj Electricals, one must understand

our core principles. We get a Gandhian set of values
by our founding father, Jamnalal Bajaj which our
current leaders follow and aim to carry forward, as a
legacy. Our tagline 'Inspiring Trust' is a value we
strongly associate with and try to fulfil in our
everyday endeavours. Apart from work, we also
believe in bringing change in the society through our
philanthropic work. Our Corporate Social
Responsibility (CSR) division rests on sustainability,
gender diversity, employee volunteering and
community outreach programmes.

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xlii
To increase our footprint globally and in India, we
have partnered with reputed brands from across the
world to give you the best possible services. BEL has
marketing arrangements with and Securiton of
Switzerland for Luminaires, Delta Controls of
Canada for Integrated Building Management
Systems, Greystone of Canada and Magnum Energy
of the USA for Wired and Wireless Sensors, DiUSA
and Media of China for Fans, and Morphy Richards
of UK for Appliances. Bajaj Electricals has also
invested in Starlite Lighting for manufacturing
energy-saving lamps (CFL). With such a vast
portfolio under our banner, we have managed to
touch lives at every juncture.

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xliii
 FIG NO:-3

 SWOT ANALLYSIS OF BAJAJ ELECTRICALS

Page
xliv
  STRENGTH:- Decades of experience in design,
development and manufacturing – Strong financial
performance – Diversified into many segments and
tapping sophisticated markets – High liquidity has
enabled it to invest in new technologies and have
grown in many segments – Market leadership and
price competitiveness – Has a strong workforce and
good brand presence due to TVCs and print ads.
 WEAKNESS – The brand has less penetration across
international market – Market share is limited due to
intense competition – Company has changed it’s
logo, People are not aware of new one.
 OPPORTUNITY – Expansion through Strategic
Alliances – Growth in its product line could increase
demand – Population growth and urbanization is
increasing the demand – Emphasis on in-house R&D
for Technology Development – Focus on Technology
Intensive Products – It is less into exports so it can
start exporting.

Page
xlv
 THREATS – Maturing
categories, products, or
services – New
competitors with new
model and new design. –
Cheaper technology –
Price wars.

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xlvi
 NAME:- HAVELLS
 LOCATION OF THE COMPANY:- Noida,India.
 NAME:- Havells
LOCATION OF OTHER BRANCES:- Haridwar,
Baddi, Noida, Alwar & Bengaluru.
 YEAR OF ESTABLISHMENT:- 1958.
 BRIEF HISTORY:-
History of Havells:-In 1958, Qimat Rai
Gupta dropped out of school and founded an electric
trading operation in the electric wholesale market
of Old Delhi. With an investment of Rs.10,000. He
started Havell's Industries. In 1971, Gupta bought
Havells brand from Haveli Ram Gandhi, and in next
five years. he started the first manufacturing plant at
Tilak Nagar, New Delhi of the Rewireable Switches
and Changeover Switches in his Kirti Nagar Plant,
near New Delhi. In next few years, Havells started to
set up manufacturing of the energy metres. Later, it
acquired Towers and Transformers Ltd. and turned it
Page
xlvii
into a profitable manufacturing energy meters
company in one year, Later, the company entered
MCBs manufacturing at Badli, Delhi, in a joint
venture with Geyer, Germany.
In 1974, the company started manufacturing of the
Changeover Switches plant at Sahibabad, Uttar
Pradesh. In 1980, they started manufacturing Control
Gear Products at their Faridabad, Haryana plants.
Later in the 1980s, they acquired a manufacturing
plant at Alwar, Rajasthan for Power Cables & Wires.
In that same year, they entered into a joint venture
with Electrium, UK for manufacturing Dorman Smith
MCCB and Crabtree modular plate switches.
Acquired an electric control and switchboards
at Noida for manufacturing customised
packaged solutions. Introduced high-end Ferraris
Meters in joint venture with DZG, Germany.
Acquired controlling stake in Duke Arnics
Electronics (P) Limited engaged in manufacturing of

Page
xlviii
electronic metres—single-phase, three-phase, multi-
function, tri-vectors and also acquired controlling
interest in an industry major-Standard Electricals Ltd
and also an acquired business of Havells Industries
Ltd, MCCB of Crabtree India Limited and merged
ECS Limited in the company to consolidate its area
of core competence.
 NAME OF FOUNDER:- Qimat Rai Gupta
 VISION STATEMENT:- To be a globally
recognised corporation for excellence,
governance, consumer delight and fairness to
each stakeholder including the society and
environment we operate in.

 MISSION STATEMENT:- To achieve our

vision through business ethics, global reach,
technological expertise, building long-term
relationships with all our associates, customers,
partners and employees.

Page
xlix
 VALUE STATEMENT:- Customer Delight:-A
commitment to surpass our customer
expectations.
 Leadership by example:-A commitment to set
standards for our business and transactions based
on mutual trust.
 Integrity and Transparency:-A commitment to
be ethical, sincere and open in our dealings.
 Pursuit of Excellence:-A commitment to strive
relentlessly, to constantly improve ourselves, our
teams, our services and products so as to become
the best-in-class.
 ORGANIZATIONAL STRUTRE:

Page l
 FIG NO:4
 SWOT ANALYSIS
 STRENGTH:-High Recall and Loyalty – Havells
India has high brand recall and loyalty and owns

Page li
 many prestigious brands. Havells India has 12
manufacturing plants in India that are located at
Baddi, Haridwar, Faridabad, Sahibabad, Alwar,
Assam, and Neemrana.
 Preferred Choice for Electrical Products – Havells
along with its brand have earned the difference of
being the preferred choice of various electrical
products for consumers both in India and abroad.
 Huge Product Range – Havells produces a huge
range of products that range from home and kitchen
appliances, commercial and industrial appliances,
domestic lightening, LED lighting, modular switches,
fans, water heaters, induction motors, and many
more. All their products are of high-quality and the
quality is the same for both the Indian
and international market.
 Global Presence – Havells India has expanded its
business operations at the international level and has
a strong distribution network out there.

Page
lii
 Good Command on Fast Growing Countries –
Havells India has a great investment in fast-growing
and emerging countries. Due to this, it has expanded
its business operations and also attain greater
visibility.
 Good Acquisition History – Havells India has
created a good history of the acquisition. It had
acquired the lightning business of Sylvania, a
Frankfurt-based company which is a global leader in
the lighting business.
 High R&D Investment – Havells India has a high
investment in R&D and has helped them to deliver
various innovative solutions to produce good
products.
 In-house Manufacturing – Havells India has an in-
house manufacturing unit for their products which is
easy to monitor the activities.

Page
liii
 WEAKNESS:- Debt Ratio – Havells India is
estimated to possess high debt ratio that is a big
weakness for its business success.
 Small Market Share at the Global Level – Havells
India tends to have a small market share at the global
level. Due to this, the company sees less visibility
with the brand at all places.
 The slowdown of Real Estate – At the time when
there is a dip in the real estate, Havells India is said to
perform low due to the impact on the economy.
 Global Market Performance – The global market
performance will hit the business operations of
Havells India more adversely especially after having
a series of acquisitions.
 Switch gear Segment – Havells India has a weak
position in the industrial switchgear segment.
 OPPORTUNITIES:-GloballyEmerging Markets –
Havells India will have to have its visibility at the
global level to enhance its business operations.

Page
liv
 Focus on Weak Segment – The company will have
to focus on its weak segment. This will provide them
with more opportunity to expand their business
operations.
 Chinese Firm Acquisition – Havells India sees a
good opportunity on the acquisition of low-cost
manufacturing of Chinese firms.
 Increase in Customer Market – The company has
an expected customer market to grow by 15-20%.
This ensures a stronger business revenue for the
company.
 Business Diversification – Going up the value
chain will, in fact, provide more opportunity to see
new business domains for the company.
 THREATS:- Delay with Power Projects – Havells
India delay in execution of power projects is a serious
threat to the company as it affects its reputation and
business revenue.

Page lv
 Unorganized Market – The unorganized market
segment will tend to pull down its business
operations that are seen as a great threat to the
company.
 Changing Government Policies – The quite often
updates of the Government policies is an obstacle
to industrial sales.
 A Single Entry for the Business – Havells India
sees a maximum business that comes from only India
and hence it’s business revenue depends only on the
Indian economic situation. This is a serious threat to
the overall growth of the business.
 ANY OTHER SPECIFIC DETAIL:-
MARKETING:- The company has promoted its
brand through sponsorship of cricket events like
Champions Trophy, Champions League, IPL Season
2, IPL Season 1, T20 World Cup. The company also
reaches consumers directly, through "Havells
Galaxy" – a shop for electrical and lighting needs.

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lvi
 NAME:-
WHIRLPOOL
 LOCATION
OF THE COMPANY:- Benton Charter Township,
Michigan, United States.
 NAME:- Whirlpool
LOCATION OF OTHER BRANCES:-  Gurugram,
Faridabad, Pondicherry and Pune.
 YEAR OF ESTABLISHMENT:- 11, nov,1911.
 BRIEF HISTORY:-
History of Whirlpool:- On November 11,
1911, Louis Upton (Lou), who worked as an
insurance salesman, and his uncle, Emory Upton,
who owned a machine shop, founded the Upton
Machine Company. Following a failed business
venture, Lou acquired a patent to a manual clothes
washer. He approached Emory to determine if he

Page
lvii
could add an electric motor to the design. With the
aid of a $5,000 investment from retailing executive
Lowell Bass ford, they began producing electric
motor-driven wringer washers. Soon after its
founding, Lou's younger brother Fred joined the
company. Their first customer, the Federal Electric
division of Commonwealth Edison, ordered 100
machines, but a fault in the gear transmission led the
customer to threaten their return. After the machines
were recalled and repaired, Federal Electric doubled
the order. They remained a customer for three years,
then they began producing their own washers. The
loss of Federal Electric forced Upton to diversify
until, in 1916, they landed Sears, Roebuck & Co. as a
customer. Sears began selling two types of Upton
wringer washers under the "Allen" brand, one for
$54.75 and a deluxe model for $95. Sales grew
quickly and in 1921, Sears appointed Upton as their
sole supplier of washers. To avoid becoming over-

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lviii
 reliant on Sears, Upton began marketing a washer
under their own brand name.
 1950s to 1980s: Early acquisitions:-To better
compete with more diversified manufacturers, in
1955, Whirlpool acquired Seeger Refrigerator
Company and RCA's air conditioner and cooking
range lines. The company changed its name to
Whirlpool-Seeger Corporation and began using the
RCA-Whirlpool brand name.[6] Whirlpool
acquired International Harvester Company's
refrigeration plant in Evansville, IN in 1955.[9] In
1956, a 100-acre (0.40 km2) administrative center
was opened in Benton Harbor, Michigan. In 1957, the
RCA Whirlpool Miracle Kitchen was introduced with
an estimated 15 million television viewers. The
company changed its name back to Whirlpool
Corporation and brought in Robert Elton Brooker as
President. At the 1959 American National
Exhibition at Sokolniki Park Moscow, Brooker

Page
lix
presided over the Whirlpool kitchen. The Whirlpool
kitchen inspired the Kitchen Debate between then
Vice President Richard Nixon and Soviet
Premier Nikita Khrushchev.
In 1966, Whirlpool dropped the RCA name, hence
the brand name became Whirlpool. The following
year, the company introduced a 24-hour helpline. By
1978, annual revenues exceeded $2 billion.
In 1966, Whirlpool purchased Warwick Electronics,
a major television producer for Sears. It also included
the division Thomas Organ Company. Whirlpool
exited the television market in 1976 by selling the
operations to Japan's Sanyo Electronic Co.,[9] but
retained the organ business for the electronic
technology.
In 1986, Whirlpool acquired Kitchen Aid, a division
of the Hobart Corporation. It also announced that it
would close most of its manufacturing facilities in the
St. Joseph, Michigan area by the end of 1988.

Page lx
 1980s to 2000s: International expansion:-In 1987,
Whirlpool began selling compact washers in India
and acquired a majority interest in English of Canada.
In 1988, Whirlpool bought a 53% stake in the large-
appliance division of Philips N.V., creating a joint
venture called Whirlpool International. The purchase
made Whirlpool the world's largest manufacturer of
major appliances, with annual sales of approximately
$6 billion. The 47% stake was bought from Philips in
1991, completing the acquisition. In 1989, Whirlpool
acquired the Roper brand and Bauknecht of
Germany.
Whirlpool entered the Indian market in the late 1980s
as part of its global expansion strategy. It founded a
joint venture with the TVS Group and established the
first Whirlpool manufacturing facility in Puducherry,
where it manufactured washing machines. In 1995,
Whirlpool acquired Kelvinator India Limited,
marking an entry into the refrigerator market as well.

Page
lxi
That same year, the company acquired major shares
in TVS joint venture, and in 1996, the Kelvinator and
TVS acquisitions were merged to create Whirlpool of
India Limited. This expanded the company's portfolio
on the Indian subcontinent to include washing
machines, refrigerators, microwave ovens, and air
conditioners. Whirlpool of India Limited is
headquartered in Gurgaon, and it owns three
manufacturing facilities at Faridabad, Puducherry
and Pune.
In 1997, the company acquired a majority stake
in Embraco, a Brazilian maker of compressors for
refrigeration. In 2000, it acquired Brazilian appliance
maker Multibrás, owner of the brands Brastemp and
Consul, including its stake on Embraco. In 2001,
Inglis Ltd. changed its name to Whirlpool Canada.
Whirlpool continues to market Inglis appliances to
this day.

Page
lxii
 2000s to present: Growth and closures:-By 2004,
annual revenues exceeded $13 billion. In
2005, Maytag Corporation shareholders voted to
accept Whirlpool Corporation's stock purchase. After
the US Justice Department approved the merger in
2006, the company acquired Maytag, including the
Maytag, Jenn-Air, Amana, Jade, Magic
Chef, Admiral, Hoover, and Dixie-Narco brands. It
sold Dixie-Narco to Crane Co., and Amana
Commercial to AGA. In 2007, Whirlpool
sold Hoover to Techtronic Industries, TTI Floor
care, and Jade Appliances to Middle by Corporation.
It also closed plants in Newton, Iowa, Searcy,
Arkansas, and Herrin, Illinois, resulting in the loss of
4,500 jobs in the affected communities. In 2008,
Whirlpool announced the closure of plants in La
Vergne, Tennessee, Reynosa, Mexico, Oxford,
Mississippi, and Jackson, Tennessee.

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lxiii
In 2009, Whirlpool acquired WC Woods from
bankruptcy and closed the company's Evansville,
Indiana plant.
In 2011, Whirlpool celebrated its 100th Anniversary
and unveiled its 100th Anniversary logo and an
updated corporate logo.[19] It also took over the
former KarstadtQuelle brand Privileg from Otto
GmbH.
In 2011, Whirlpool announced the closure of the Fort
Smith Arkansas plant. The following year Whirlpool
opened a manufacturing plant in Cleveland
Tennessee replacing a 123-year-old facility. The
$200 million project added about 130 jobs to an
established workforce of 1,500. The 1-million-
square-foot (93,000 m2) facility manufactures
premium cooking appliances for Whirlpool's
portfolio of brands. The project includes a
distribution center.

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lxiv
In August 2013, Whirlpool leadership Zachary
Guenther - Interim CEO Whirlpool Corporation,
2013 announced it would acquire a 51% majority
stake in China’s Hefei Royal star Sanyo (a joint
venture between Japan's Sanyo Electric Co, now a
unit of Panasonic Corp, and Hefei State-Owned
Assets Holding Company Ltd, the investment arm of
the local state government) for $552 million and give
the company leverage to expand in the Chinese
appliance market.
In July 2014, Whirlpool announced it would pay
€758 million ($1 billion) to buy a 60% stake in
Italian rival Indesit. In December Whirlpool
completed a successful mandatory tender offer for the
remaining shares and delisted Indesit from the Milan
Stock Exchange. Indesit is now a wholly owned
subsidiary of Whirlpool Italia Holdings S.r.l.

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lxv
In January 2017, Whirlpool announced that it would
cut about 500 jobs from its Europe, Middle East and
Africa dryer manufacturing unit by 2018. This
decision provides the closure of the plant in Amiens,
France, which became an issue in the 2017 French
presidential election, with both Marine Le
Pen and Emmanuel Macron visiting the workers on
strike before the second round.
In October 2017, Whirlpool and retailer Sears
Holding Corp. reportedly ended their 101-year old
association that allowed Whirlpool branded
appliances to be sold at Sears’s stores, and later at
Kmart. The companies reportedly were unable to
come to an agreement on pricing issues. Whirlpool
will continue to supply Kenmore appliances
manufactured for Sears.

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lxvi
 In March 2020, Whirlpool Corporation announced
the official opening of a new Factory Distribution
Center in Tulsa, Oklahoma.

 NAME OF FOUNDER & PROMOTERS :- Louis

& Emory upton

 MISSION STATEMENT:-

Earn trust and create demand for our brands in a

digital world

 VISION STATEMENT:-

Be the best kitchen & laundry company, in constant

pursuit of improving life at home

 VALUES STATEMENT:-

Integrity
Respect
Teamwork
Spirit of Winning
Diversity with Inclusion.

Page
lxvii
 ORGANIZATIONAL STRUTURE:-Whirlpool
Corporation is a Fortune 500 company and a global
manufacturer and marketer of major home appliances
with its headquarters in Benton Charter Township,
Michigan, United States, near Benton Harbor,
Michigan. The company has annual revenue of
approximately $18.4 billion, more than 70,000
employees, and more than 70 manufacturing and
technology research centers around the world. The
company markets Whirlpool, Maytag, KitchenAid,
Jenn-Air, Amana, Gladiator Garage Works, English,
Estate, Brastemp, Bauknecht, Consul, and other
major brand names to consumers in nearly every
country around the world.
After acquiring the Maytag Corporation on March
31, 2006, Whirlpool Corporation passed Electrolux to
become "the largest home appliance maker in the
world."
Founded in 1911, Whirlpool is celebrating its 100th

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lxviii
Anniversary in 2011.
In the U.S., Whirlpool has manufacturing facilities in
Fort Smith, Arkansas; Amana, Iowa; Tulsa,
Oklahoma; Cleveland, Tennessee; Ohio (Clyde,
Findlay, Greenville, Marion and Ottawa).

Page
lxix
 FIG NO:5

 SWOT ANALYSIS

 STRENGTH:- Excellent product portfolio –
Whirlpool is one of the largest manufacturers of

home appliances as well as consumer electronics.

Whirlpool has Washing machines, Refrigerators, Air

Page
lxx
 Conditioners and many different products in its
portfolio. Its Product portfolio is quite in depth.

 Huge Revenue – Whirlpool has a huge revenue of

$21 Billion per year as of 2017.

 Employee strength – Whirlpool has a huge

employee strength which is advantageous to the
company. Whirlpool has around 1 lakh employees
across the world.

 One of the top Major appliances manufacturer –

Whirlpool is Present in most of the large appliances
as well as home appliances. It is Ranked 199th
by Forbes in the top global companies across all
sectors.

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lxxi
 Strongest in Washing Machines – Whirlpool has a
clear market leadership in Washing machines where
it is clearly the leader above all other brands.

 Manufacturing Advantage – Whirlpool has

manufacturing in 61 countries where it has
manufacturing hubs. The factories are known to have
optimized operations giving excellent output. As a
result, Whirlpool is easily able to match
the demand in the market for its products.

 Covers the whole world – Whirlpool is present in

the US, UK, Europe, Middle East, Africa, Asia and at
least above 100 countries. This fantastic presence of
the company has helped the brand in the high
revenue.

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lxxii
 Strongly involved in charity work – Whirlpool has
many charity initiatives and believes in CSR and
giving back to the society.

 WEKNEES:-
 Stagnancy in total revenue – A major weakness
Whirlpool faces is that there is stagnancy in their
total revenue generated. Since the last several years
Whirlpool has risen and dropped but it has stayed on
or around $21 billion revenue. This shows that the
company is not growing and is losing market share to
other competitors.
 Dependence on US market – The company is
majorly dependent on the US markets and some
markets in Asia. As a result, it loses to other brands
in other countries and loses out on potential revenue.
 Alt presence is dropping – Whirlpool does not have
a good ATL presence. Its BTL presence is average as

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lxxiii
 well. Because it is a star in the BCG matrix, its
spends on ATL and BTL needs to be higher.
 Differentiation is lacking – The consumer
electronics industry is filled with brands which are
copying each others products and there is not much
differentiation that can be done between brands. Such
differentiation is lacking for Whirlpool as well.
 High revenue but low margin – The revenue is high
but to maintain the same level of revenue, the
expenses are getting higher too. As a result, the
company has high revenue but the net margin is
dropping.
 OPPORTUNITIES:-
 Entering Small Appliances – Whirlpool is known
majorly as a large appliance and home appliances
product. But there are many small appliances which
are not present in the product portfolio of Whirlpool.
This is something which LG has done and which

Page
lxxiv
 Whirlpool can do to expand its targeted customer
base and to offer more products from its own brand.
 E-commerce sales – Whirlpool can capitalize the
rise in E-commerce sales across the globe and
especially in developing nations.
 Emerging markets – Whirlpool can concentrate on
developing and emerging markets especially in
Africa and parts of Asia. These emerging markets can
help Whirlpool build its brand in a nascent market
and thereby give a boost to the revenue of the brand.
 Increasing depth of Portfolio – Increase product
portfolio depth is another opportunity which
Whirlpool can capitalize on. It can sell more products
to its already existing huge customer base.
 R & D – Whirlpool can spend more on its R & D to
give even better products at competitive prices to the
customer thereby penetrating the market even more.
 Services – The consumer durables segment is one of
the segments where service is always a major

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 problem because of the nature of the products.
Thus, innovations in service delivery will help the
brand in brand equity as well as in becoming a
trustworthy brand.
 THREATS:-
 Intense Competition – A major problem to
Whirlpool is the intense competition in this industry.
As a result, other brands are taking away market
share and Whirlpool’s revenue is touching stagnancy.
The competition is not going to drop in time. Thus
Whirlpool needs to look at additional avenues to
generate revenue and to get profit.
 Dropping margins – The dropping margins are a
major threat to Whirlpool as they challenge the
brands expansion and the brands existence directly.
 Mature markets – US and other Asia markets are
mature markets where there are many brands present
and penetrated. As a result, having a footprint in
these regions is getting more and more difficult.

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 ANY OTHER SPECIFIC DETAIL

 Energy conservation :-Whirlpool has received $19.3 million in U.S. Department of

Energy funding as part of its Smart Grid Investment Grant program.

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