Strategic Analysis case study: Electrolux

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Help with Essay (Case Study)

Use the strategic analysis as a method of organizing and evaluating case information

APA style between 4-5 pages not including the reference page

Essay format; not bullet format.

All charts, graphs, pictures are to go in the appendix (not a substitute for content)

Refrain from excessive use of quotes in your response (less than 5%)

Prompt:

Review the corporate strategy of AB Electrolux.

As the social and demographic trends continue to evolve so do the opportunities afforded to Electrolux. The most significant demographic shift globally is the growing middle class in Asia, which includes families with incomes between US$6,000 and US$30,000. It is estimated that by 2030 there will be 3 billion more people in the global middle class than there were in 2013.(Ernst & Young, 2013)

Correlated with rising incomes worldwide, homeownership has also increased at a substantial rate giving rise to increased demand for consumer durables such as refrigerators, washing machines, and dishwashers. (Electrolux, 2013)

Electrolux (2013) Electrolux 2013 Annual Report.

https://www.electroluxgroup.com/en/electrolux-annu…

Ernst & Young (2013) Hitting the sweet spot. (Attached pdf)

Questions:

Use Barney’s VRIO framework to analyze the competencies of Electrolux.

  • Discuss whether AB Electrolux can compete with local Chinese consumer manufacturers.
  • Discuss the three leading perspectives on strategy, and how this strategy tripod influences Electrolux.
  • Identify Porter’s four generic strategies. Discuss which of these would work best for Electrolux.
  • What is the corporate culture of Electrolux? Discuss two distinct attributes of culture within the organization.
Answer preview

Electrolux is one of the leading manufacturers of home appliances around the world. Since its establishment in 1919, Electrolux has experienced growth in production and profitability, which has enabled the business to expand to different markets in North America, Africa, Asia, Latin America, and Europe (Ernst & Young, 2013). Currently, Electrolux has grown to a capacity holding more than 61000 employees across the world. Electrolux regards the rapid growth in population across different parts of the world as the driving force for its products. Notably, the unprecedented increase in the middle-income population in Asia has positions Electrolux to compete well with manufacturers in China and other parts of Asia.

(1304words)