Mini Case Study - Electrolux

2. Background
• Manufacturers of white goods
• The company originates from a merger of two companies—Lux AB
and Svenska Elektron AB
• It is consistently ranked the world's second-largest appliance maker
by units sold (after Whirlpool)

3. Brand Values

5. 50 million products in 150 countries
In 2013 revenue of 14.5 billion
61,000 employees worldwide
Always among top 5 global household appliances leader
Acquired GE Appliances and a 48.4% of Mabe’s
shareholding in September 2014

6. Business
divisions
4 major
appliances
divisions
A small
appliance
division
A professional
product division

7. They target low population growth &
high replacement product sales
areas like New Zealand and Japan.
Expanded to Latin America,
Southeast Asia and China.

8. Brand Portfolio
Strategically planned to serve luxury ,
premium and mass markets

9. Brand Vision
The Electrolux vision is to be the best
appliance company in the world as
measured by customers, employees and
shareholders.

10. 4 Pillar
Strategy
Innovative
Products
Operational
Excellence
Profitable
Growth
Dedicated
Employees

12. SWOT Analysis
STRENGHTS
• Global presence
• Consumer insight
• Professional Legacy
• Sustainable Leadership
• People and culture
• Offers many brand names all over the world
• Offers a variety of products
• Have high and wide range of technologically advanced products
• Offers very efficient green products and also manufactures products in a
green way

13. SWOT Analysis
WEAKNESSES
• Incapable to maintain a high profit margin on higher priced
appliances in Germany, Spain, UK and China
• Sub-brands are more well-known than Electrolux
• Offers medium to high end products
• Low operating margin of 4.8%

14. SWOT Analysis
OPPORTUNITIES
• Asian middle class will increase by 1 billion in 2020
• Growth markets for Electrolux in Africa , Middle East and Eastern
Europe
• Increase its share of sales in the Southeast Asia and Latin America to
50 percent

15. SWOT Analysis
THREATS
• Competitors like Whirlpool, the Haier group, Bosch-Siemens and LG
Electronics.
• Changing Markets
• Presence of Internet

16. Evaluate
Electrolux’s
strategy in light of
its vision and the
global trends in the
household
appliance industry?

17. •Electrolux’s strategy is clearly working
for them as they have maintained
themselves among global leaders.
•Good green technology products
•Sub brands are well known than
Electrolux
•To create more customers, prices need o
be kept in check
•Brand promotion through internet and
better use of social media

18. What benefits will Electrolux
receive from the acquisition
of GE Appliance?
How does it fit in with the
strategy direction of the
group?
What strategic options can
Electrolux pursue for future
growth to achieve greater
global dominance?

19. • GE Appliance is one of the leading manufactures of
kitchen and laundry products in North America as it
makes 90% of its sales in this region
• Runs its own logistic network
• 48.4 % shareholding in Mabe
• Mergers and acquisition is one of the strategy to build the
brand.
• They need to have innovative products while also keeping
them as “green” as possible
• New ways to market their product with the use of the
internet and social media
• India and china are the ideal markets according to their
agenda for expansion

20. Summary
• 4 pillars Strategy
• Successes
• SWOT Analysis
• Future plans

21. Disclaimer
Created by Aaishwarya Avhad, UMIT , during a marketing internship by
Prof. Sameer Mathur , IIM Lucknow.(
(See mbaskillsin@gmail.com)