Electrolux Case Study

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Electrolux Case Example
Refer to section 1.2.1 and explain why the issues facing Electrolux were strategic. Try to find examples of all of the items cited in that section.

Long-term direction:
* Major restructuring within the company
* Moving production to low-cost countries
* Strengthen the Electrolux Brand
* Increase production, purchase and logistic efficiency
* Continuous product and personnel development
* Building a strong global brand

Scope:
* Focus on indoor products (home and professional)

Competitive Advantage:
* Big know-how because of the long history of experiences and many acquisitions * Product development on consumer insight
* Access to competence (active leadership development and good career opportunities)

Strategic fit with environment:
* Increase rate of product renewal based on consumer insight * Cut costs (because of strong global competition)

Resources and Competences:
* Focus on indoor products
* Disposing/changing of many non-core industrial activities * Drive out complexity
* Efficient global coordination
* Product development on consumer insight (lower investment risk) * Access to competence (active leadership development and good career opportunities) * Intense product renewal

Values/Expectations:
* Accelerate the development as a market-driven company
* Greater understanding of customer needs
* Investing in the Electrolux brand (building it as a global leader) * Ongoing raise of profitability, increase of efficiency, reduction of costs

In the Electrolux case you can find examples for all the strategic characteristics mentioned in the section 1.2.1. In summary it is very complex because the decisions cover all aspects of the company (development, purchase, production, logistic, personnel) and are combined to form a very efficient and low-cost strategy to become the leader within the strong global competition. Uncertainty is...
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