PG-41 Strategic Management -- Session twelve
Electrolux Case Summary
As the largest home products producer in the world, Electrolux has regarding 70000 employees all around the world in about one hundred and fifty countries, producing 14 billion dollars euros in sales in 2005. However , an acquisition case from its main competition, Whirlpool, is definitely challenging the п¬Ѓrst host to Electrolux, at that time Electrolux has just decided to divest its outdoor division. A massive decrease in revenue in the subsequent years is expected. Beginning from 1920s, Electrolux has been known for its expertise in industrial design on products including vacuum cleaner and refrigeration. The items quickly received popular with its home country in Sweden, but in different western countries such as Indonesia, France, UNITED STATES and UK, due to the homogeneous culture of those countries. A serious growth sought after after World War II contributed a great deal to its development. With a large amount of accumulated money of the past decades, Electrolux decided to expand quickly through a number of acquisitions for more market share and diversiп¬Ѓcation. In late twentieth century, Electrolux discovered fresh markets in developing countries when the industry in western countries was already very fully developed and was even displaying a sign of going down. In addition, it went through a phase of restructuring the segmentations of goods as well as deserted some fewer important actions. Up until 2006, the company features addressed it is new strategies mainly in functional level to match the difficulties. To maximize the proп¬Ѓt, the availability would be outsourced to developing countries with lower labor costs. More efп¬Ѓcient logistics has made the globalization more feasible and cost-saving. On the product market level, as a result of market polarization, a more distinguishing product segmentation would be utilized. While keeping the basic low-cost, economical products, Electrolux is introducing a series of products with larger prices to satisfy the sophisticated market. However, 2%...