Strategic Position of Electrolux
Explain why the issues facing Electrolux were strategic.
Axel Wenner-Gren, the founding father of Electrolux, established the principles by which the company still thrives. His dream to improve quality of life has had fundamental impact on homes around the world. Today’s Electrolux, 90 years later, is a global leader in household appliances and appliances for professional use.
One of the reasons why the issues facing Electrolux were strategic is the long- term direction. The company put an impact on expansion. By the mid 1930s they had established production outside Sweden in Germany, UK, France, USA, and Australia. The strategy was to grow through acquisitions and diversification. There were 59 acquisitions made in 1970s. In the 1990s Leif Johansson expanded into Eastern Europe, Asia and South Africa.
Electrolux strategy is the tool for achieving the long-term goal of an operating margin of 6%. Electrolux is therefore focusing first on continuing to reduce production cost. In the interest of creating long-term competitiveness, Electrolux is implementing a comprehensive program for savings in production and purchasing, which involves relocating production to and increasing purchases from low-cost countries.
The scope of an organisation is its range of products and services Electrolux is providing. It is the larger producer of domestic and professional appliances for the kitchen, cleaning and outdoor use.Electrolux products include refrigerators, dishwashers, washing machines, vacuum cleaners, cookers, chainsaws, lawn mowers, and garden tractors sold under esteemed brands such as Electrolux, AEG-Electrolux, Eureka and Frigidaire.
Competitive advantage plays a very vital role at Electrolux. It is a consumer-oriented company in which all product development grows out of insight into consumer needs. By increasing their customer insight, they are able to develop even more new products that solve the customer needs and problems. The company understands
Axel Wenner-Gren, the founding father of Electrolux, established the principles by which the company still thrives. His dream to improve quality of life has had fundamental impact on homes around the world. Today’s Electrolux, 90 years later, is a global leader in household appliances and appliances for professional use.
One of the reasons why the issues facing Electrolux were strategic is the long- term direction. The company put an impact on expansion. By the mid 1930s they had established production outside Sweden in Germany, UK, France, USA, and Australia. The strategy was to grow through acquisitions and diversification. There were 59 acquisitions made in 1970s. In the 1990s Leif Johansson expanded into Eastern Europe, Asia and South Africa.
Electrolux strategy is the tool for achieving the long-term goal of an operating margin of 6%. Electrolux is therefore focusing first on continuing to reduce production cost. In the interest of creating long-term competitiveness, Electrolux is implementing a comprehensive program for savings in production and purchasing, which involves relocating production to and increasing purchases from low-cost countries.
The scope of an organisation is its range of products and services Electrolux is providing. It is the larger producer of domestic and professional appliances for the kitchen, cleaning and outdoor use.Electrolux products include refrigerators, dishwashers, washing machines, vacuum cleaners, cookers, chainsaws, lawn mowers, and garden tractors sold under esteemed brands such as Electrolux, AEG-Electrolux, Eureka and Frigidaire.
Competitive advantage plays a very vital role at Electrolux. It is a consumer-oriented company in which all product development grows out of insight into consumer needs. By increasing their customer insight, they are able to develop even more new products that solve the customer needs and problems. The company understands