6. VISION AND STRATEGY
The Electrolux vision is to be the best appliance
company in the world as measured by customers,
employees and shareholders.
It has based its strategyon four pillars:
7. Electrolux developed six SBUs(
Strategic business units) consisting of 4 major
appliance divisions ,a small appliance division
and a professional products division.
Core markets are:
Western Europe, North America
,Australia
Almost 65% of group sales comes from Japan
and New Zealand.
Markets characterized by low population growth
and high replacement product sales.
8. MARKETING INNOVATION
Electrolux has followed Porter’s generic
strategies of overall cost leadership ,
differentiation and focus.
“Innovation triangle” at Electrolux encourages
cooperation between Marketing , R&D and
design to ensures faster reach to the market
based on consumer insight.
“Same product architecture, differentiated
design” helps develop global modularized
platforms.
Platforms facilitate planning across divisions by
spreading successful launch in all markets
delivering greater customer value .
9. They aim to increase sales by 50% by introducing innovative product
offerings.
Their tagline “Thinking of you” increases their brand value significantly
through these cleverly designed print ads.
10. OPERATIONAL EXCELLENCE
Restructured production across divisions globally to
increase efficiency.
Shifted 60% of manufacturing from Western Europe
and North America to low cost regions.
11. PROFITABLE GROWTH
It constantly innovates to enhance current
products and penetrate existing markets.
Mergers and acquisitions are a major
aspect of their strategy to strengthen
global positioning .
Examples:
• Zanussi - Europe
•AEG -Germany
• Frigidaire , Kelvinator,
• White Westinghouse - North America
• Refripar - Brazil
• Olympic Group - Middle East &North Africa
14. •Electrolux’s vision is to be the best appliance
company in the world as measured by its
customers, employees and shareholders.
•Strategy based on 4 pillars of: innovative
products, operational excellence, profitable
growth and dedicated employees.
•Production efficiency has increased by
restructuring of the firm.
•Indulged in horizontal integration for
integrative growth.
15. •Global trends incline towards
sustainable products. Their line
of ultra silent products helps
prevent noise pollution.
•They have followed “same
product architecture,
differentiated design” to
produce local variations for
different markets.
•Global presence, consumer
insight, professional legacy,
sustainability, Scandinavian
heritage and wide product
range give them a competitive
edge.
16. What benefits will Electrolux receive
from the acquisition of GE
appliances?
How does it fit with the strategic
direction of the group?
What other strategic options can
Electrolux pursue for future growth to
achieve greater global dominance?
17. Benefits by acquiring General Electric appliance business include:
•Control over GE appliances kitchen and laundry products which makes
more than 90 percent of sales in North America.
•Access to GE appliances own distribution and logistic network.
•Additional 48.4 percent shareholding in Mexican company, Mabe which
manufactures products for GE.
•Gave company additional financial horsepower with greater business
opportunities around the world.
18. For greater world dominance:
•Set newer goals and excel in sustainable product
development.
•Brand portfolio increased by developing quality products for
price conscious customers.
•Invest in emerging markets like China, India.
•Develop long term strategies and downsize older business to
develop newer fresh ones.
•Develop marketing advertising channels to attract more
It fits well with Electrolux’s strategic
direction.
• Electrolux believes in profitable growth through merger and
acquisitions.
•Product line length has increased.
•Develop more innovative products in newer categories.
•Operational efficiency by own distribution network
