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Running head: CORPORATE STRATEGIES OF ELECTROLUX1Corporate Strategies of ElectroluxBUSN 313January 29, 2017Professor Emmet Fritch
CORPORATE STRATEGIES OF ELECTROLUX2Corporate Strategies of ElectroluxElectrolux is a company based out of Stockholm, Sweden and is one of the leading manufacturers of household appliances. This company has sold over 60 million products to consumers throughout 150 markets over several years (Electrolux, n.d.). Electrolux focuses its efforts on innovations that are considerately designed and grounded on wide-ranging consumer understanding. This ideology supports the company in meeting the industry’s demand for consumers and professionals. The Electrolux core competencies and inventive creations are key contributing factors that have kept it competitive with rival Chinese consumer manufacturers all over the world (Electrolux, n.d.). Electrolux’s collaboration of resource, industry, and institute-based strategies have assisted the company in improving its presence across North America, Europe, and Asia. Such strategies as the Differentiation and Focus strategies are instrumental in helping Electrolux improve its uniqueness and in turn, the profits for the company (Dess & Davis, 1984). An important value that Electrolux regards highly is its optimistic and progressive corporate culture, which is comprised with people of diverse backgrounds. The company believes that enthusiastic employees and outstanding leaders contribute to the company’s achievements of production targets and hopes for future concepts. Electrolux operates around theglobe, using the same high morals, principles of veracity and employee engagement to maintain a productive and successful organization. Electrolux is a successful company whose competitivestrategies, including Barney’s VRIO framework, Porter’s strategies, and the innovative corporatemindset to have kept it relevant amongst other rival Chinese consumer manufacturers of similar products.
CORPORATE STRATEGIES OF ELECTROLUX3A productive and profitable organization like Electrolux utilizes any tools available to support its ideals. Barney’s VRIO framework is a tool that is used to evaluate a company’s capabilities and internal resources to determine the competitive advantage it may have, and is a highly effective base of support. The rapid rise of living standards and an increased number of households, around the world, able to afford household products and appliances make for an ever-evolving, competitive business. The vision of Electrolux is to be the top appliance manufacturer in the world through its growth, innovation and operational excellence. Electrolux’s success can be measured by the mixture of continuous growth, high profitability, stable cash flow, and a prime capital base, which are displayed through high total returns for investors (Electrolux, n.d.). Throughout the past ten years, Electrolux has shown annual sales totals and returns of at least 17 percent, while the average Swiss Exchange index (SIX) exhibited12 percent (Electrolux, n.d.). Electrolux is a worldwide front-runner in home appliances for