Strong brand value and recognition give Whirlpool adistinctive advantage in the market from its competitors.
Relatedness of the statement
As of 1998, Whirlpool
Corporation claimed to be the world’s leading
manufacturer of major home appliances. The company manufactured inthirteen countries and marketed its products under eleven major brand namesto over 140 countries. The brand name became well known in America,Europe and Asia and it was the strength of Whirlpool
Whirlpool will lead tocontinued improvement in the operating performance in 1998 and beyond,especially as we manage through a difficult market and economicenvironment. In 1989, Whirlpool Corporation (Whirlpool) embarked on anambitious global expansion with the objective of becoming the world marketleader in home appliances. In Asia the industry was highly fragmented,consisting ofmanufacturers primarily from Japan, Korea, and Taiwan.Matsushita, the market leader, held less than10% market share outsideJapan.
Strong brand name helps to increase margins by charging premium prices for goods, because customers perceive a higher standard of quality fromcompanies with strong brands. A strong brand name may also help to supportthe stock price, because people will associate a strong brand with a strongstock. Approximately 120 million home appliances are sold in developedcountries each year. The appliance industry is generally classified into four categories: laundry, refrigeration, cooking, and other appliances. Appliances