Electrolux Case Summary Essay

Category: Managing
Published: 31.08.2019 | Words: 445 | Views: 352
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As the largest domestic goods manufacturer in the world, Electrolux features about 70000 employees all around the world in about 150 countries, making 14 billion pounds in sales in june 2006.

However , an acquisition circumstance from its key competitor, Whirlpool, is difficult the? rst place of Electrolux, at the time Electrolux has just chosen to divest its outdoor split. A huge reduction in sales inside the following years is predicted. Starting from 1920s, Electrolux continues to be famous for it is expertise in industrial design on goods such as vacuum and a fridge. The products quickly got well-liked not only in the home country in Sweden, but also in other european countries such as Germany, England, USA and UK, because of the homogeneous traditions of these countries.

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A major growth in demand following World War II offered a lot to it is growth. With a large amount of accrued cash of the past years, Electrolux chose to expand quickly through a number of acquisitions to get more market share and diversi? cation. In late 20th century, Electrolux discovered fresh markets in developing countries when the market in european countries had been very adult and was even exhibiting a sign of going down. In addition, it went through a phase of restructuring the segmentations of goods as well as abandoned some much less important activities.

Up until 2006, the company features addressed their new strategies mainly about functional level to correspond to the issues. To maximize the pro? t, the production would be outsourced to developing countries with reduced labor costs. More ef? ient strategies has made the globalization even more feasible and cost-saving. For the product marketplace level, because of the market polarization, a more distinguishing product segmentation would be utilized.

While to get basic low-cost, economical products, Electrolux is introducing a series of items with bigger prices to fulfill the high end market. Alternatively, 2% of sales will be put in R&D to keep a higher rate of recent products releases. The supply chain management has always been vital in terms of consumer merchandise industry. The moment Electrolux is definitely outsourcing many productions, it is also hifting the strategy of distribution programs.

Instead of traditional dealers, big chains with large volume and large geographical protection are raised front as a result of lower portion cost. First and foremost these, the organization keeps attempting on brand-building by investment at least 2% of the sales each year. With more products are sold below Electrolux’s name, the company is likewise improving the brand photo by straining more on the culture through internal and external contact among staff, suppliers and retailers, etc .