An investment success story in Central and Eastern Europe: The model case of Whirlpool Slovakia

The objective of this paper is to show an illustrative outcome of the investment opportunities triggered by the breakup of the Soviet Union and communist bloc after the fall of the Berlin Wall, the Velvet Revolution, and many other similar events which ultimately led to the transition of Central and Eastern Europe (CEE) from a planned economy, to a free market economy. Around this same time, Whirlpool Corporation, one of the world’s leading manufacturers and marketers of home appliances, made a strategic decision to globalize its production and market. In pursuit of this decision, Whirlpool entered Europe, and later Slovakia in the new CEE market.

Methods: This paper is a narrative reviewing Whirlpool´s 25 plus years in Slovakia, its history and transition from a joint venture – a sub-standard producer of washing machines in Czechoslovakia, to where Whirlpool Slovakia today is not only among the leading producers of white appliances in the Whirlpool global value chain, but one of the models of efficiency in the production of top loader washing machines. From a theoretical viewpoint, this is a showcase of how a subsidiary’s mission transcends from a local level. This paper demonstrates how theory and practice coincide. The paper also highlights the chances, as well as the challenges, for Whirlpool Slovakia, the country of Slovakia, and for MNCs of entering the markets of Eastern Europe, and it speaks of the contribution and impact that Whirlpool has made on the people and community of Poprad, a small city on the foothills of the High Tatra Mountains.