The Company manufactures and markets a full line of major appliances and related
products, primarily for home use. The Company's principal products are home laundry
appliances, home refrigerators and freezers, home cooking appliances, home dishwashers,
room air-conditioning equipment, and mixers and other small household appliances.
Approximately 10% of the Company's unit sales volume is purchased from other manufacturers
for resale by the Company. The Company also produces hermetic compressors and
plastic components, primarily for the home appliance and electronics industries.
The Company markets and distributes major home appliances in the United States
under the Whirlpool, KitchenAid, Roper, and Estate brand names primarily to
retailers, buying groups, and builders. KitchenAid portable appliances, such
as mixers, are sold directly to retailers. The Company sells products to the
builder trade both directly and through distributors. Additionally, the Company
sells to Crosley Corporation under the Crosley private label brand, and to Costco
Wholesale Corporation under the Kirkland Signature brand. Major home appliances
are manufactured and/or distributed in Canada under the Inglis, Admiral, Speed
Queen, Whirlpool, Roper, and KitchenAid brand names. In Mexico, major home appliances
are manufactured and marketed under the Whirlpool, Acros, KitchenAid, Estate,
Roper, and Supermatic brand names. Some products are sold in limited quantities
by the Company to other manufacturers and retailers for resale in North America
under their respective brand names.
The Company has been the principal supplier of home laundry appliances to Sears,
Roebuck and Co. ('Sears') for over 80 years. The Company is also the principal
supplier to Sears of residential trash compactors and a major supplier to Sears
of dishwashers, freestanding ranges, home refrigerators and freezers, and microwave-hood
combinations. The Company supplies products to Sears for sale under Sears' Kenmore
brand name. Sears has also been a major outlet for the Company's Whirlpool and
KitchenAid brand products since 1989.
In Europe, Whirlpool markets and distributes its major home appliances under
the Whirlpool, Bauknecht, Ignis, Laden, and Polar brand names and its portable
appliances under the KitchenAid brand name. In addition to its extensive operations
in Western Europe, the Company has sales subsidiaries in Hungary, Poland, the
Czech Republic, Slovakia, Greece, Romania, Bulgaria, Latvia, Estonia, Lithuania,
Croatia, and Morocco and representative offices in Russia, Ukraine, Kazakhstan,
Yugoslavia, and Slovenia. In certain Eastern European countries, products bearing
the Whirlpool, Polar, and Ignis brand names are sold through distributors. The
Company manufactures refrigerators and freezers and markets a full line of products
under the Whirlpool, KIC, and Ignis brand names in South Africa. Whirlpool's
European operations also sell products carrying the Whirlpool, Bauknecht, and
Ignis brand names to distributors and dealers in Africa and the Middle East.
In Latin America, the Company markets and distributes its major home appliances
through regional networks under the Whirlpool, Brastemp, Consul, and Eslabon
de Lujo brand names. Appliance sales and distribution in Brazil, Argentina,
and Chile are managed by the Company's Brazilian subsidiary, and in Bolivia,
Peru, Paraguay, and Uruguay through distributors. Appliance sales and distribution
in Central American countries, the Caribbean, Venezuela, Colombia, and Ecuador
are managed by Whirlpool's North America Region and through distributors.
In Asia, the Company has organized the manufacture, marketing, and distribution
of its major home appliances into five operating groups: (1) mainland China;
(2) South Asia, which includes India, Bangladesh, Sri Lanka, and Nepal; (3)
Oceania, which includes Australia, New Zealand, and Pacific Islands; (4) North
Asia, which includes Hong Kong, Taiwan, Korea, and Japan; and (5) Southeast
Asia, which includes Thailand, Singapore, Malaysia, Indonesia, and the Philippines.
The Company markets and sells its products in Asia under the brand names Whirlpool,
KitchenAid, Bauknecht, and Ignis by a combination of direct sales to high-volume
retailers and chain stores, and through full-service distributors to a large
network of electronics stores.
Competition
The major home appliance business is highly competitive. In most major markets
throughout the world. The Company firmly believes that it can best compete in
the current environment by providing value added products and services under
its strong brand names.
The Company believes that, in terms of units sold, it is the largest North
American manufacturer of home laundry appliances and one of the largest North
American manufacturers of home refrigerators and freezers, room air conditioning
equipment, dishwashers, and cooking products. The Company believes that in North
America there are approximately 20 manufacturers or marketers of major home
appliances.
The Company believes that in Europe it is, in terms of units sold, one of the
largest manufacturers and marketers of major home appliance products, out of
approximately 35 European manufacturers, the majority of which manufacture a
limited range of products for a specific geographic region. There continues
to be significant merger and acquisition activity as manufacturers seek to broaden
product lines and expand geographic markets, and the Company believes that some
merger and acquisition activity will continue. The Company believes that its
Pan European organizational structure and strategy of marketing brand names
that are recognized throughout the region are competitive advantages in the
European market.
The Company believes that it is well-positioned in the Latin American appliance
market due to its ability to offer a broad range of products under well-recognized
brand names to meet the specific requirements of consumers in the region. The
Company believes that it is about twice the size of its nearest competitor and
that there are approximately 25 manufacturers or marketers of major home appliances
in the region.
In Asia, the major home appliance market is characterized by low saturation
and, as a result, rapid growth (except in Japan and South Korea). The Asian
market is served by approximately 50 manufacturers or marketers of varying size
and position on a country-by-country basis. The Company believes that it is
one of the industry leaders in the Indian market and it continues to establish
itself throughout the remainder of the region.
Competition in most of the Company's markets is based upon a wide variety of
factors, including, principally, product features, price, product quality and
performance, service, warranty, advertising, and promotion. As a result of its
global position, the Company believes it has a competitive advantage by reason
of its ability to leverage engineering capabilities across regions, transfer
best practices, purchase raw materials and component parts in large volumes,
and economically produce a finished product.