Why did Whirlpool decide to adopt the Brand-Focused Value Creation (BFVC) strategy?
Several reasons explain why whirlpool decided to adopt the Brand-Focused Value Creation (BFVC) strategy. They were motivated by desire to focus on needs of their customers in an effort to improve service delivery. In addition, they wanted to improve customer loyalty and develop a strategy that would bring more benefits to shareholders. Before the adoption of the strategy, Whirlpool had realized that the company needed a stronger and more effective strategy that would enable it to remain a market leader in the future. The company had focused on improving the quality of products, cutting on competitive costs, and expanding their global presence. However, these aspects alone were not enough to propel whirlpool to greater heights. Moreover, they did not guarantee sustainability into the future. Creating brand loyalty by focusing on their customers was the solution to their hunger for sustainability.
How was the BFVC strategy implemented?
Whirlpool implemented the BFVC strategy by improving their operations and embracing innovation, and focusing more on advertising their products. Their innovativeness was evident from the development of brands such as Jenn-Air, Brastemp, and KitchenAid. The rationale behind innovation was that their products functioned in a similar manner as products manufactured by rival companies. Therefore, it was necessary for them to offer products and services that were of greater value than the ones they were producing. They created value for their brands by creating innovative products and by offering innovative solutions that their competitors did not offer to customers.
As a result, they sought ideas from their more than 60,000 employees, retail partners, and customers. They contracted an external consulting firm that helped them to drive innovation in the organization. Strategos taught Whirlpool’s employees how to innovate and generate excellent ideas. Strategos leader was appointed the vice president of innovation at Whirlpool. Snyder appointed a manager responsible for innovation in all regions. In addition, he selected 25 employees from each region who would be trained on innovation by Strategos. They formed what was referred to as the I-Teams. The teams generated many ideas that led to innovations and new products.
Personal assessment of the BFVC strategy?
The BFVC strategy was very successful even though it was initially an obstacle. Managers did not know how to implement it and did little to ensure its success. However, after the entry of Strategos, things changed at whirlpool. I think the strategy was effective and successful because of several reasons. First, it encouraged innovation, which is an important aspect of growth and organizational success. It encouraged whirlpool to allocate enough resources to innovation. Secondly, the strategy improved knowledge management at Whirlpool. The management of Whirlpool developed systems to monitor and manage innovation efforts. This led to improvement of employee productivity and the overall company’s productivity. Thirdly, the strategy led to improvements in the organizational structure of the company. The management adjusted the labels of product families to encompass broader groups of related products. In addition, manufacturing costs were cut and the quality of products was imp[roved owing to the effects of the BFVC strategy. Were it not for the strategy, whirlpool would be lagging behind in the market. The strategy set it apart from its competitors who were not keen on embracing innovation and improving their operations.
Recommendations to Whirlpool regarding its innovation management
There are several things that Whirlpool could do to improve its innovation management. First, they should use innovation as a tool to improve the value of their existing brands. When the strategy was developed, it was biased towards developing new brands rather than improving the value of existing brands. It is important for whirlpool’s management to realize that their brand name is due to the impact of their existing brands. Therefore, they should strive to improve the value of existing brands. Secondly, they should focus their efforts on one innovation at a time. This should include generation of ideas, development of a product, advertising, and marketing. Whirlpool focuses o several innovations at a time thus reducing the effectiveness of marketing and product development efforts.
For example, they could create time frames for different innovations during which they concentrate their efforts and resources on a single innovation at a time. Thirdly, they should conduct extensive market research in order to find out what is missing on the market. After conducting research, they should then focus their efforts on developing products that are missing on the market. In addition, they should seek opinions from customers on what products they would like introduced into the market or what changes they would love to see in existing products. This should be the basis of their innovation. They should not develop new products because they want to introduce a new product on the market. Instead, they should innovate because they want to satisfy a need that is inherent on the market. This is the best strategy to improve the value of their products and gain customer loyalty.