AB Electrolux, more commonly known by its shorter name - Electrolux, is one of the global leaders in household electrical appliances such as refrigerators, rice cookers, dishwashers, washing machines, vacuum cleaners, air conditioners and many other devices. Currently, the business is trading more than 50 million products in 150 countries. With headquarters located in Stockholm, Sweden, Electrolux was founded in 1919, as a result of a merger between two brands including AB Lu and Svenska Electron AB. In 2013, Electrolux's revenue was approximately $14.5 billion and employed more than 61,000 people globally.
Electrolux Group consists of 6 subsidiaries, including 4 companies specializing in general electrical appliances, 1 company specializing in small electrical appliances, and 1 company specializing in equipment for professional users. or business consumers. Electrolux's main market (accounting for 65% of sales) is located in Western Europe, North America, Australia, New Zealand and Japan. The remaining 35% of revenue comes from Africa, the Middle East, Eastern Europe, Latin America, South America and China. By providing increasing living standards to major markets, Electrolux aims to increase its market share to 50% with innovative products in the next 2 years.
In 2013, Electrolux was in the top 5 largest home appliance manufacturers worldwide, next to Whirlpool, Haier, Bosch-Siemens, LG Electronics. If you add up the sales of all five brands in the same period, the total number is close to 50% of global sales. The growth in this industry is driven by rising incomes, changing lifestyles and consumer spending, as well as the growing trend of urbanization. Besides, economic growth in emerging markets is also considered a driving factor for the development of this industry.
Electrolux's competitive advantages
Electrolux's main competitive advantages include global popularity, good customer insight, beautiful design, professional working tradition, diverse product lines, multi-ethnic personnel, culture, leadership trustworthy leader.
Electrolux's strategic vision
Electrolux Group has a vision to become the world leader in applied products, through the opinions of customers, employees and shareholders. Electrolux's business strategy is based on four key elements: innovative products, operational excellence, profitable growth, and dedicated employees. Electrolux's strategy also aims to build a brand profile with luxury, class and the ability to meet demand on a large scale. Besides the main brand Electrolux, the group also owns 7 other strategic brands including Grand Cuisine, AEG, Zanussi, Euraka, Frigidaire, Molteni, and Westinghouse.
Innovation and Localization in Electrolux's Sales & Marketing Strategy
There is a term used internally by Electrolux - "Innovation triangle". This triangle is a close link between Marketing, research and development (R&D), and design, with the aim of ensuring faster and faster market access based on deep understanding. about customers (customer insight). This makes it possible for Electrolux to use the "same product architecture, many different designs" model to develop globally modularized platforms. By making it easier for businesses to expand to the market, these platforms are said to facilitate Electrolux's business plan for many market segments.
By maintaining its strategy of focusing on increasing operational efficiency, Electrolux has restructured its manufacturing operations by geographic segment. Electrolux has relocated nearly 65% of its production force mainly from Western Europe and North America to other geographies with lower operating costs.
By pursuing a profitable growth strategy, Electrolux continues to improve products and expand product lines to penetrate existing markets. In 2013, the company launched many innovative new products in the North American and Japanese markets. In addition, this enterprise also launched a full line of household appliances for cooking and washing in the world's most populous market - China, with unique designs for consumers. used by this market.
Growth strategy through mergers and acquisitions
One of the key aspects of Electrolux's business strategy is growth through mergers and acquisitions. Over the past 40 years, Electrolux has made many acquisitions around the world to strengthen its global position through localized geomarketing. Some of the famous acquisitions can be named Zanussi in Europe, AEG in Germany, Frigidaire, Kelvinator, and White Westinghouse in North America, Refripar in Brazil, Olympic Corporation in the Middle East and North Africa.
In September 2014, Electrolux announced an agreement to acquire General Electric's appliance business, GE Appliances, for an estimated $3.3 billion. GE Appliances is one of the leading manufacturers of kitchen and laundry equipment in North America, with sales accounting for more than 90% of total regional sales and operated by its own distribution & logistics system. mine. The deal also includes a 48.4% stake in Mabe, a Mexico-based company that has a joint venture with GE that develops some of GE's product lines. According to Keith McLaughlin, Chairman and CEO of Electrolux, this deal is expected to help the company have the financial resources in its balance sheet to be able to expand its production and business across the country. world.
With a history of growth driven by savvy brand positioning, expanding global reach, innovation driven by customer insight, operational excellence & manufacturing efficiency, With an increase in financial resources, Electrolux aims to dominate the home appliance industry on a global scale.