stratetig competition ELECTROLUX

onducting the strategic analysis of AB Electrolux, it is assumed that it must be analyzed in both business level and corporate level since the company’s strategy path is towards becoming the leader in household appliance industry while competing with the first leader in the industry Whirlpool Corporation and other dominating companies such as GE Appliances and LG Electronics. It is obvious that Electrolux managed to be globally successful focussed on sustainability matters and consumer needs without compromising on a low cost product variety, instead it has been focussing on producing quality in its products and managed to enter into a premium market of household appliances. The strongest sector of profitability and sales for 2009 was consumer durables in Europe and North America as Appendix 4 presents. Consumer durables are the most successful department with revenue amounting to 93% of overall revenue for 2009, leaving professional products revenue only 7%. Another consequence of the global recession was the fall in the share price of Electrolux. In determining whether Electrolux strategy is sustainable, one useful tool is SWOT Analysis. This analysis is useful to analyze the environment of the company and its strategic capability that affect business strategy planning.
STRENGTHS:
The company is focussed on sustainability issues (e.g. “green range” products). It relocated 60% of manufacturing to Mexico and China which are low cost countries. Additionally, it has strong sustainability initiatives. It managed to gain energy savings of up to $100 million a year. Electrolux managed to produce efficient products with low energy and environmentally friendly (e.g. AEG-Electrolux Super-Eco washing machine, Lagoon and Inspiro oven). Electrolux managed to increase its operating profit margin with firstly achieving low suppliers and production costs. Electrolux achieved a more “comprehensive thinking” when expansion, based