Electrolux Part Case Study

Topics: Electrolux, Vacuum cleaner, United States Pages: 2 (458 words) Published: October 13, 2012


This was just the latest shift in strategy at Electrolux
whose impressive growth and development started
under the leadership of Alex Wenner-Gren in 1920s
Sweden. The early growth was built around an expertise
in industrial design creating the leading products in
refrigeration and vacuum cleaning. By the mid-1930s
the company had also established production outside
Sweden in Germany, UK, France, USA and Australia.
The period following the Second World War saw a
major growth in demand for domestic appliances and
Electrolux expanded its range into washing machines
and dishwashers. In 1967 Hans Werthén took over as
president and embarked on a series of acquisitions that
restructured the industry in Europe: 59 acquisitions were
made in the 1970s alone followed by major acquisitions

Photo: Electrolux

By 2005 Sweden’s Electrolux was the world’s largest
producer of domestic and professional appliances for
the kitchen, cleaning and outdoor use. Its products
included cookers, vacuum cleaners, washing machines,
fridges, lawn mowers, chain saws and also tools for the
construction and stone industries. It employed about
70,000 people and sold about 40 million products
annually in about 150 countries. Its annual sales in 2005
were 129 billion Swedish krona (~A14bn; ~£10bn) and
profits about 3.9bn krona (~A420m). But 2005 saw two
changes that would push the company into second
place in the industry – behind the US company
Whirlpool. First, Whirlpool completed its acquisition of
Maytag – which gave it about 47 per cent market share
in the USA and global sales of some $US19bn (~A15bn).
Second, Electrolux announced that it was to demerge its
outdoor products division (mowers, chain saws, etc.) as
Husqvarna. This left Electrolux to focus on the indoor
products for both the home and professional cooking
and cleaning organisations. So the ‘new Electrolux’
would have 57,000 employees and global sales of...
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