Whirlpool dumping charge against LG and Samsung and possible supply chain response

An article in the Wall Street Journal (Jan 2, 2012) describes a claim by Whirlpool that LG and Samsung have dumped residential washing machines, at prices below production costs, and requests import duties to be levied.  Whirlpool claims that the higher margins in the protected South Korean market enables LG and Samsung to afford such US pricing. But aggressive import duties may incent LG and Samsung to set up manufacturing plants in the US, and compete even more aggressively with Whirlpool. Are Whirlpool’s claims a reasonable way to manage its competitiveness in the US ? Should the strategies used by LG and Samsung, which are good for the US consumer, be prohibited – thus increasing prices for consumers ? Given the modern global supply chain, with design, production and distribution spread across the world, what constraints regarding pricing should be prevented to enable effective competition ?

Advertisements

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s