What do you think of Whirlpool's new product development process? What concerns are
apparent in designing the new washer?
Whirlpool faces the ongoing challenge of deciding how much to adapt their products for
different markets. While adapting products allows them to cater to specific consumer
preferences, it can be expensive and time-consuming in terms of product development and
manufacturing. On the other hand, standardizing production processes brings efficiency benefits,
but producing too many product variations can negate these advantages.
To tackle this dilemma, Whirlpool employs a platform development strategy. By
establishing a common framework that underlies all product versions, they can add or remove
features based on the preferences of individual markets. This approach simplifies the product
design, with major components standardized while allowing for easy substitution of
customizable elements. This strikes a balance between market adaptation and operational
efficiency.
Whirlpool's operational strategy becomes complex as they strive to design a washing
machine that suits both the European and U.S. markets. In Europe, front-loading machines are
favored for their energy efficiency and gentle treatment of clothing. However, in the U.S., top-
loading machines dominate the market due to consumer demand for larger capacities.
To overcome this challenge, Whirlpool assembles a diverse project team consisting of
engineers, designers, and specialists from Germany, Italy, and the U.S. They collaborate to
develop the Duet washer, a front-loader introduced in the U.S. with a capacity 10-15% larger
than typical top-loaders. Simultaneously, they plan to launch the Dreamspace in Europe, which
features slight variations in size, style, and wash cycles. The Dreamspace is designed to hold
nearly twice the amount of clothes compared to a typical European front-loader. Whirlpool also
intends to sell the same machine in Asia, with a target of selling 600,000 units per year at a price
of $1,300 each.
Whirlpool's approach to new product development reflects a strategic and thoughtful
response to the challenge of adapting to different market preferences. By leveraging platform
development and assembling a diverse team, they aim to address the differences in washing
machine preferences between Europe and the U.S. This approach enables Whirlpool to remain
