CASE STUDY

ELECTROLUX
 GROUP MEMBERS:

 ELECTROLUX
 AB Electrolux , popularly known as Electrolux, is a global leader in home and
professional appliances.
 It sells more than 50 million products in 150 countries.
 Have revenues of approximately $14.5 billion and employed 61,000 people worldwide.
 VISION: To become the best appliance company in the world as measured by
customers, employees, and shareholders.
 The main competitive advantages are global presence, consumer insight, design,
professional legacy and sustainability leadership.
 It has 4 pillar strategy: INNOVATIVE PRODUTCS, OPERATIONAL EXCELLENCE,
PROFITABLE GROWTH AND DEDICATED EMPLOYEES.
IDENTIFICATION OF THE PROBLEM
 1. Long term Strategic Direction

 2. Business Environment

 3. Meeting Strategic fit with the business environment

 4. Resource availability and competence of the company

 ANALYSIS OF THE ISSUES
 1. Long term Strategic Direction
The long term goal was the development of Electrolux, to speed up market-
oriented company based on understanding the customers’ needs.

Increasing the Continuous

Strengthening the
Productivity, product and
brands of
Procurement, and employee
Electrolux
logistics efficiency development

Building a strong
global brand
 2. Business Environment

 Globalizing products and related services all over the world and there will be more concentration
on product development, brand-building, marketing etc.

 Market polarization make changes in consume, strengthening global competition and growth. Thus
increasing the demand for both basic and higher-price products.

 Consolidating retailers with more big retail chains and fewer traditional dealers. That helps
Electrolux with wide geographical coverage, high purchase volume and to keep prices low.
 3. Meeting Strategic fit with the business environment

 Strategic fit was also a strong issue for Electrolux.

 They are trying to set a strategic positioning differing from its environment through niche
market in a particular segment

 The problem for Electrolux was that it was losing the advantage in the fast-growing
economies and this forced them to prioritize building the Electrolux brand globally, as well
as in all product categories.

 Organizations use conclusion it must be strategically improve its cost position through better
coordination at the global level.
 4. Resource availability and competence of the company

 By resources, we mean financial, human and the organization’s resources which are more important in
the implementation of strategic decisions.

 Strategies need to be considered are not only the existing resource base of the organization which is
suited to the environmental opportunities but also in terms of resources those can be obtained and
controlled to develop a strategy for the future.
EFFECTIVE SOLUTIONS TO THE PROBLEM

 Accelerating the development as a market-driven company.

 Greater understanding of customer needs and providing low cost and high quality products to create
customer delight.

 Creating efficient purchasing and supply-chain management that ensures high quality services than
competitors

 Developing leadership skills among employees to keep the company ahead of their competitors.

 Removing market complexities and cutting cost in all aspects of operations. It can be achieved through
efficient purchasing and production systems.
 Increasing the product renewal based on consumer insight. And that will help to capture the
portion of investment.

 Increasing investments in marketing and brand building that will place Electrolux as a world leader
in the industry.

 Maintaining a more efficient production and logistics systems and also amore efficient purchasing
arrangement.

 The systematic development of brands and staff by the intensified product renewals which are
implemented at the operational level and strategic decisions.

 The strategy is effectively implemented by everyone in the organization to achieve a common

goal.
STRATEGY USED BY ELECTROLUX
 There are three levels of strategy followed by Electrolux:

1. Corporate level of strategy:

Corporate strategy level brings the overall game plan for the management of a
number of companies.
Following actions ensures that Electrolux have Corporate strategy:
 Larger restructuring exercise at different parts of the business for adding value.
 The relocation of high-cost countries to low-cost countries.
 Brand Management activities to make Electrolux a global brand.
 2. Business level strategy:

Electrolux is following business level strategy to strengthen the market

position and to build competitive advantage. That will ultimately assist to gain the
competitive skills in a particular market. Objectives of Electrolux’s business level
strategy are:

 Removing market complexities and cutting cost in all aspects of operations. It can
be achieved through efficient purchasing and production systems.
 Increasing the product renewal based on consumer insight. And that will help to
capture the portion of investment.
 Increasing investments in marketing and brand building that will place Electrolux
as a world leader in the industry.
 3. Operational level Strategy

The third and final level of strategy used by Electrolux is the operational
strategy. Electrolux is dealing the strategy successfully through some following
functions:

 Maintaining a more efficient production and logistics systems and also amore
efficient purchasing arrangement.
 The systematic development of brands and staff by the intensified product
renewals which are implemented at the operational level and strategic
decisions.
 The strategy is effectively implemented by everyone in the organization to
achieve a common goal.
EFFECTIVE STRATEGIES WHICH CAN BE USED

 1. Technological Innovation: Continued investment in research and development to

pioneer new technologies in energy efficiency, smart home integration, and sustainable
materials.

 2. Partnerships and Alliances: Collaborate with tech companies, start-ups, or

complementary industries (like electronics or software) to develop integrated, cutting-
edge products.

 3. Sustainability Leadership: Position Electrolux as a leader in sustainable practices, not

just in product design but also in supply chain management and operational processes.
 4. Market and Product Diversification: Explore untapped or underrepresented
markets and expand product lines to cater to evolving consumer needs and trends.

 5. Customer-Centric Approach: Prioritize customer feedback and market research to

ensure products align with real-world needs and desires.

 6. Mergers and Acquisitions: Identify potential acquisitions or mergers with companies

that bring unique capabilities, technologies, or market access.

 7. Digital Transformation: Invest in digital platforms, e-commerce, and data analytics

to enhance customer experiences and gain insights for product development.

 8. Global Supply Chain Optimization: Streamline and optimize the supply chain to
improve efficiency, reduce costs, and enhance sustainability practices.
 LINKS TO THE COURSE
 1. https://www.swotandpestle.com/electrolux/

 2.
https://www.scribd.com/document/481520703/Strategy-electrolux-case-study-a
ll-answers-pdf

 3. https://thegemba.com/article/electrolux-case-study

 4.
http://fernfortuniversity.com/hbr/case-solutions/14983-electrolux-ab--managin
g-innovation.php