International Business

International Business Case Study

Question 1 3
Question 2 4
Question 3 5
Question 4 6
Question 5 7
References 8

Question 1
What is the nature of Whirlpool’s domestic and international business environments? What types of risk does the firm face?
The nature of the domestic and international business environment of Whirlpool is highly competitive in nature. There are a number of opportunities to make a mark with the type of product that is more preferred at a certain place but at the same time the level of risk involved sees no bounds. The company feels that this competitive environment has a single solution of internationalization. Hence, the company has not only expanded its business in USA but it has also gone a huge leap forward in making a mark in countries like Bulgaria, Hungary, Russia, Slovakia, Russia and also Czech Republic. In India, Whirlpool has made a name for itself. The company has come up with a variety of products so as to suit the dynamic environment at both local and international levels. But as we know, a larger return would only come from a bigger risk, there are also various amounts of risks associated with the company’s proceedings. The company was forced to invest lesser in the research and development in some of the lower-cost locations. This can be an advantage for the new entrants. Other than this, the company had to face declining sales in USA with its expansion strategy as the focus on the home country shifted elsewhere. The threats from competitors to the country are also ever-increasing. The reason for the same is that as Whirlpool is expanding its market to Asia as well, companies like Haier are giving it immense competition. So, there are chances that the company’s cost of investment in these countries might not reach break-even as predicted. These are some of the vital risks that Whirlpool is associated with in its international expansion program. The customers at home feel the of-focus strategy and...