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Electrolux Case Study
Electrolux is one of the market leaders in the domestic and professional appliance market. In 2005, for the first time, they were pushed into second place in the industry. In response to this Electrolux has identified strategies which they wish to implement so combat thins slump in their sales.
Electrolux identified the following strategic issues: Managing under-performers, moving production to low-cost countries, more efficient production and logistics, more efficient purchasing, intensified product renewal, access to competences and starting to build a strong global brand. I, for the benefit of this exercise and according to me, have identified the three most important strategic issues faced by Electrolux which are:
• Starting to build a strong global brand
• Moving production to low-cost countries &
• Intensified product renewal
Electrolux have highlighted globalisation as being an area which the company would need to examine, and they will need to form some sort of ‘strategic weapon’ to tackle it. Globalisation within the economy can also be known as change. Change is an implication when making any strategic decisions in business. Branding is, for me, one of the most important aspect of a company’s success. Once one has established a strong brand it is something that is not easily copied by competitors especially if it is a unique product range. This will go hand in hand with product renewal. The aim of Electrolux’s should be to be the first brand people think about when prompted to purchase a household appliance.
Manufactures are looking to move produc ...