Discuss whether AB Electrolux can compete with local Chinese consumer manufacturers.

Strategic Analysis case study: Electrolux

 

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

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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.

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