KitchenAid is an American home appliance brand owned by Whirlpool Corporation. Based in Benton Charter Township, Michigan, US, the company was started in 1919 by The Hobart
Manufacturing Company. The company was eventually bought out by and now is a subsidiary of the Whirlpool Corporation. Before we jump into the SWOT Analysis of KitchenAid, Let us see the
Overview Of The Company and Timeline
KitchenAid is Kitchenware and Home Appliances Company owned by Whirlpool Corporation. The American company produces all kinds of household and kitchen appliances ranging from hand mixers to coffee makers and even refrigerators to water filters.
KitchenAid is currently one of the most extensive manufacturers of home appliance products and kitchenware. They are competing against other major brands like Dyson, Sunbeam Products, Smeg, Panasonic, Bosch, etc. Their products are known for their unique and innovative features.
Employees: 8,000 Annual Revenue: $500 million per year Net Profit: $397 million
Competitors Of KitchenAid:
In the US, Sunbeam Products Inc., Kenwood, Sage Appliances, Smeg, Hobart,
Electrolux, Bosch, etc. Some of the international competitors are, Philips, Panasonic, Xiaomi, Midea, KONKA, LG, etc.
Did You Know?
The company was not founded by Whirlpool Corporation. The Hobart Manufacturing company made its inception in 1919. Whirlpool Corporation bought the company in 1986 for $150 million.
Development Timeline of KitchenAid
1919: KitchenAid was founded by The Hobart Manufacturing Company.
1922: KitchenAid introduced the new H-5 model stand mixers.
1928: The model “G” stand mixers are released.
1937: The model “K” launched amidst the great depression.
1939-1945: Operations were closed for the duration of the world war.
1949: The company expanded its product range by introducing its first dishwashers.
1969: The company reaches its 50th year and releases the K-45 model.
1985: KitchenAid purchased Chambers Company to incorporate their cookers into the brand.
1986: The company was purchased by Whirlpool Company in January 1986 for $150
million. Their first full line of refrigerators also came into the market.
2008: KitchenAid added induction cooktops to its appliance suite.
2019: The company celebrated its 100th anniversary.
SWOT Analysis Of KitchenAid
We’ll discuss KitchenAid’s strengths, weaknesses, opportunities, and threats with the SWOT Analysis. We’ll figure out how the company is going to expand its businesses, find opportunities, tackle its weaknesses and threats in the form of competitors and natural or man-made disasters.
S Stands For Strengths
- Product Range: KitchenAid manufactures a wide range of home and kitchen appliance products. They have a colorful range of products that can be found in many countries across the world. It has more options compared to its many competitors.
- Best in Class Home Appliances: KitchenAid has manufactured some of the most innovative and best quality home and kitchen appliances. The company is currently ranked 3rd in the most recent Top 50 Prophet Brand Relevance Index U.S. It goes to show what the company offers to their consumer expectations. The nearest another brand of this industry that has got into the list is the British company Dyson, placed at 30th.
- Brand Image: KitchenAid is owned by Whirlpool Corporation. Whirlpool Corporation is a world-famous multinational marketer of home appliance products. Their products are found all over the world. KitchenAid is already popular in the domestic market. As Whirlpool’s subsidiary, KitchenAid is also acquiring world recognition.
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W Stands For Weakness
- Intense Competition: KitchenAid is one of the most popular home appliances and
kitchenware brands in the US. The company has many brands competing against its integrity and brand value. The only downside is that it only exists in the domestic market. Unlike its parent company, it doesn’t have much recognition around the world. Some competitors on the other hand have far superior international recognition. The intense competition limits its market share.
- Premium Products Only: KitchenAid offers premium home appliance products only. The premium quality comes with an expensive price tag which a lot of people will find hard to afford.
- Limited Geography: Even though KitchenAid is an international company, it only operates in a select few countries. Either the company does not want to expand to other countries, or it simply can’t because of some of the competitors already entering and creating a presence in those countries.
O Stands For Opportunities
- Expansion into Emerging Markets: Expanding into emerging markets is a good opportunity for KitchenAid. With the world currently in absolute shock, the post-Covid world will bring unlimited opportunities and new markets for the home appliances industry. The company only needs to find the right market segment and set its foot into it.
- Bringing New Products: KitchenAid manufactures most of the home appliance products but not all. If they invest in another product category, it can bring them more market shares and more consumer recognition. Especially investing in products that are the talk-of-the-town and are in need the most right now amidst the pandemic.
- Better Technology: The company is already popular for its innovative and feature-rich products. If they research and implement better technology or master the technology available in their current products, they can increase their profitability.
T Stands For Threats
- Competition: For the last few years, big brands like Sunbeam Products, Kenwood, Dyson, Philips, Panasonic, LG, etc. have been innovating their variation of home appliance products. Some of the competitors also have better international recognition which is threatening for an internationally emerging company like KitchenAid. The intense competition also lowers the number of shares the company can withhold.
- Wars and Disasters: These two elements are threatening not for just KitchenAid, but also for lots of other organizations. KitchenAid had to be out of operation for 7 years during World War I also went through the great depression although it didn’t affect the company that much. And now in the current world, it’s incurring losses amidst the Covid-19 pandemic and its concurrent quarantine lockdowns.
- Global Economic Fluctuations: Everything has come to a standstill when the Coronavirus hit the entire world. Business organizations, offices, schools, colleges, everything had to stop. Closing down operations of business organizations has severely affected the global economy to the point that it’s now threatening all kinds of business industries.
KitchenAid SWOT Analysis Key Takeaways:
The SWOT analysis of KitchenAid highlights where the brand currently stands and what its
threats and opportunities are in the modern era. There are a few key suggestions for KitchenAid in the following section that were recommended after this detailed analysis:
- KitchenAid needs to expand to emerging markets and new product segments.
- The company needs to manufacture budget-friendly products for economical people.
- KitchenAid also needs to innovate and bring new technologies to their home appliance products.