1 2013 – 2014 INTRODUCTION After-sales business plays an instrumental role in dictating firms’ financial well-being and competitiveness. Due to global competition, shrinking profits in primary products sales, and stagnating revenues, firms have expanded their after-sales businesses to boost sales, enhance profit, increase customer loyalty, and to differentiate their portfolio. Systematic, integrated approaches should optimally align after-sales management to the overall objectives of the firm and the current market situation. As a result of increased global competition, commoditization of primary products, and diminishing profit margins, the after-sales business has gained strategic importance for numerous companies across various industries. Accordingly, the perception of after-sales services has changed over the past few decades, from the traditional perspective of additional but necessary costs imposed exclusively by manufacturers (Lele, 1997) towards a potential source of competitive advantage and business opportunity (Armistead & Clark, 1992; Wagner & Lindemann, 2008). Due to increased awareness of the strategic value of service, firms are beginning to shift focus to aftermarkets. The after-sales business has emerged as a major source of competitive maneuvering, so that firms strive for competitive advantages with their after-sales service offer. Consequently, more manufacturers are shifting their emphasis from original products sales to customer needs; customers find value in the Dept. of Mgmt, Osmania Degree College for Women, Kurnool
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1
2013 – 2014
INTRODUCTION
After-sales business plays an instrumental role in dictating firms’ financial well-being and
competitiveness. Due to global competition, shrinking profits in primary products sales, and
stagnating revenues, firms have expanded their after-sales businesses to boost sales, enhance
profit, increase customer loyalty, and to differentiate their portfolio. Systematic, integrated
approaches should optimally align after-sales management to the overall objectives of the
firm and the current market situation.
As a result of increased global competition, commoditization of primary products, and
diminishing profit margins, the after-sales business has gained strategic importance for
numerous companies across various industries. Accordingly, the perception of after-sales
services has changed over the past few decades, from the traditional perspective of additional
but necessary costs imposed exclusively by manufacturers (Lele, 1997) towards a potential
source of competitive advantage and business opportunity (Armistead & Clark, 1992;
Wagner & Lindemann, 2008). Due to increased awareness of the strategic value of service,
firms are beginning to shift focus to aftermarkets. The after-sales business has emerged as a
major source of competitive maneuvering, so that firms strive for competitive advantages
with their after-sales service offer. Consequently, more manufacturers are shifting their
emphasis from original products sales to customer needs; customers find value in the trouble-
free operation of products. After-sales services enhance product availability during the entire
product life cycle and are key to long term company success. Users require after-sales
services and assistance to help them gain maximum value from their purchases to the point
that primary product purchase decisions may no longer be solely based on the product's value
(performance relative to cost) but also on the service price, quality, and portfolio available to
support the use of the product. Thus, after-sales services maximize the value extracted by
customers over the entire product life cycle (Goffin & New, 2001).
With the presence of a valuable aftermarket an incentive is created for competition. In
the meantime this attractiveness of the after-sales business containing services and spare parts
is recognized by further parties (e.g. competitors, suppliers) who are trying to gain a share of
the aftermarket.
Dept. of Mgmt, Osmania Degree College for Women, Kurnool
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After the Second World War the markets have gone through a transition, from the
conventional seller marker it has transformed into a buyer’s market. These were a time when
products were made without considering the consumer need. Now the time has changed
market have realized that the products can be sold best if they satisfy consumer’s needs. This
need can be an existing one or a created one .
In this project it has been tried to analyze the After Sales Service of the consumer and also
tried to give the various advantages that the good after sales service can made a consumer
satisfied. The study is being done with reference to Whirlpool Ltd. The Whirlpool limited is
among the one of the leading manufacturer of electronic goods in India.
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COMPANY PROFILE
History:
Whirlpool Corporation is the world's leading manufacturer and marketer of major
home appliances, with annual sales of more than $19 billion in 2011, 68,000 employees, and
66 manufacturing and technology research centers around the world. The company markets
Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, Bauknecht and other
major brand names to consumers in nearly every country around the world.
Our beginnings, though, were much more humble, based on a business failure and the
vision of one family. In 1908, Lou Upton invested his savings in a venture to manufacture
household equipment. When that company failed to materialize, Upton was offered the
opportunity to select something of value from the failed venture as a return on his investment.
He chose the patents on a hand washing machine that he thought might be electrified.
Lou Upton brought the patents and his innovative vision home to St. Joseph,
Michigan. In 1911, Lou joined his uncle Emory and brother Fred to produce motor-driven
wringer washers as the Upton Machine Company.
STRONG BUSINESS ETHICS
The company's first major order for 100 washing machines came almost
immediately. A problem arose when a cast-iron gear in the transmission
failed — in every single machine. Upon learning of the issue, Lou Upton
replaced the defective parts with a new cut-steel gear. Impressed with the
fledgling company's business ethics, the customer doubled its order to 200
washing machines.
Upton Machine continued to grow. In order to meet increased customer
demand, in 1929 it merged with the Nineteen Hundred Washer Company of New York.
Together they formed the Nineteen Hundred Corporation, and business grew steadily, in spite
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of the Great Depression of the 1930s. We began experimenting with new products,
innovative technologies and strong engineering and sales.
WHIRLPOOL IN THE 1940S AND 1950S
World War II halted washer production, as factories were modified to provide
components for the P-40 Warhawk aircrafts and military equipment. More than two million
units of war materials were produced, including aircraft propeller pitch controls, trailing
edges for fighter wings, hydraulic steering mechanisms for tank retrievers, carburetor parts,
pumps, gears and gear cases.
In the summer of 1945, we began producing washers again, anticipating that within three
years demand would be twice that of 1941. This began a
period of explosive growth that would take us from a
small manufacturer of washers and ironers to a large
manufacturer of a full line of major home appliances,
including the first fully-automatic washer and electric
dryer.
In 1949, we changed our company’s name to Whirlpool
Corporation to contribute to the recognition of our signature brand. We had grown to lead the
industry, achieving $48 million in sales and annual earnings of $3 million.
COMMITMENT TO SOCIETY
Lou and Fred Upton established the Whirlpool Foundationfollowing the war, making a
commitment – a promise – to reinvest in the community. Their intent was to provide financial
and leadership support for nonprofit organizations dedicated to improving the quality of life
in the communities where Whirlpool Corporation operated.
During the post-war boom years of the 1950s, we looked for new ways to expand our product
offering. In 1955, we merged with the Seeger Refrigeration Company, which provided us
with a quality refrigerator line. As part of the merger we also acquired RCA’s air
conditioning and range businesses, allowing us to provide customers with exceptional
products that met their needs. In 1958, we took our first tentative step toward operating in
foreign markets by entering a partnership with Brazil’s Brasmotor S.A., parent of appliance
maker Multibras S.A. Eletrodomesticos.
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EXPANSION AND DEDICATED SERVICE
By the start of the 1970s, Whirlpool offered appliances
to handle laundry, home heating and cooling, and the
full cycle of food preservation, preparation,
consumption and cleanup, in the kitchen. We continued
introducing innovative products that performed more
efficiently and helped make household tasks easier. To
support our consumers, we introduced the Cool Line,
the first toll-free consumer service support program in
the United States.
We formed the Office for Environmental Control in 1970, solidifying our focus on social and
environmental responsibility. This group allowed us to standardize strong environmental
standards across all of our operations. Concurrently, we formed partnerships with
environmental advocates, industry representatives and legislators to help craft robust energy
and water efficiency standards, test procedures and policies, a commitment that continues
today.
THE FIRST SPACE KITCHEN
In October 1960, Whirlpool received a government contract to design and build America’s
first experimental space kitchen. The kitchen included a miniature thermoelectric refrigerator,
freezer, three-cavity oven, self-heated water system, storage space for food and disposal units
for both dry and wet waste. This was the first attempt by appliance engineers to cope with the
problems of zero gravity, and a number of innovative solutions were developed. Our work
helped build public knowledge of and confidence in the space effort. Whirlpool continued
working with the government to develop food and equipment for space travel, pioneering the
development of food, waste management and personal hygiene systems used in all of
NASA’s Gemini, Apollo and Skylab missions.
We began growing our international business, expanding into Mexico. We also built a
manufacturing plant in Pondicherry, India, and began manufacturing and marketing
appliances throughout Europe. In 1986, we purchased the KitchenAid division of Dart and
Kraft, allowing us to continue the excellent tradition of major and countertop appliances for
which KitchenAid is known.
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Whirlpool accelerated our global expansion in the 1990s, with an expanded presence
throughout Europe, Latin America, Asia and parts of
Africa. We were well on our way to becoming a global
force in the home appliance industry and the industry’s
eventual leader.
GLOBAL APPLIANCE LEADERSHIP
In 2006, we took the significant step of acquiring
Maytag Corporation, resulting in an aligned organization able to offer more to consumers in
the increasingly competitive global marketplace. The transaction enabled us to become a
more efficient supplier to trade customers while offering a broader portfolio of innovative,
high-quality branded products and services to consumers.
Our focus on environmental sustainability continued with an emphasis on consistently
offering a full line of energy- and water-efficient products. In 2003, we became the world’s
first appliance manufacturer to announce a global greenhouse gas reduction target, a 3
percent reduction from 1998 levels by 2008. We revised the target in 2007, to a goal of 6.6
percent reduction by 2012. Currently our operations’ release of toxic chemicals in the United
States is nearly 90 percent less than the releases compared to the 1987 baseline year, while at
the same time production increased approximately 80 percent.
COMMUNITY FOCUS
One of the ways we demonstrate our commitment to community and society is through our
partnership with Habitat for Humanity International, which began in 1999, when we began
donating a range and an ENERGY STAR®-qualified refrigerator to every Habitat for
Humanity home built in North America. Our commitment has expanded to include support
for every Habitat home built globally by 2011, either through product donations, cash or
home sponsorship.
Throughout the years, Whirlpool has built a culture of doing the right thing based on living
up to our commitments to stakeholders and by quietly working behind the scenes to
strengthen the economic and social fabric of the communities in which we operate. Our
employees live by the values that have made our company the international leader that it is
today. We are delivering strong performance, providing an outstanding portfolio of brands,
and we’re creating better, more innovative products that improve consumers’ lives in and
around the home each and every day. Nearly 100 years ago, the Upton family continually
improved their washer; they cared about their community, their employees and their
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customers. They believed that "there is no right way to do a wrong thing." We still believe
that today.
LEADING BRANDS
Whirlpool markets some of the world’s most recognized appliance brands,
includingWhirlpool, Maytag, KitchenAid, Jenn-ir, Amana, Bauknecht, Brastemp and Consul.
The Whirlpool brand is the world's No. 1 global appliance brand.
OUR VISION
Every Home… Everywhere… with Pride, Passion and Performance
Our vision reinforces that every home is our domain, every customer and customer activity
our opportunity. This vision fuels the passion that we have for our customers, pushing us to
provide innovative solutions to uniquely meet their needs.
Pride... in our work and each other
Passion... for creating unmatched customer loyalty for our brands
Performance... that excites and rewards global investors with superior returns
We bring this vision to life through the power of our unique global enterprise and our
outstanding people... working together... everywhere.
OUR MISSION
Everyone, Passionately Creating Loyal Customers for Life
Our mission defines our focus and what we do differently to create value. We are a company
of people captivated with creating loyal customers. From every job, across every contact, we
will build unmatched customer loyalty…one customer at a time.
OUR VALUES
Our values are constant and define the way that all Whirlpool Corporation employees are
expected to behave and conduct business everywhere in the world.
Respect — We must trust one another as individuals and value the capabilities and
contributions of each person.
Integrity — We must conduct all aspects of business honorably – ever mindful of the
longtime Whirlpool Corporation belief that there is no right way to do a wrong thing.
Diversity and Inclusion — We must maintain the broad diversity of Whirlpool people
and ideas. Diversity honors differences, while inclusion allows everyone to contribute.
Together, we create value.
Teamwork — We must recognize that pride results in working together to unleash