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RIVALRY AMONG COMPETITORS: HIGHThe main competitors of Electrolux are Whirlpool, GE appliances and LG Electronics. They have a similar product but Electrolux provide a higher segment price compare to their competitors, the concept of their product is efficient products with low energy and environmentally friendly which is differentiatedfrom other competitors. They have a direct competitor with Whirlpool because of the product segmentation; high quality with high cost and Whirlpool provides medium quality with medium cost. 5
EXTERNAL FACTOR ANALYSIS SUMMARYNo.Key Internal FactorWeightRatingWeightedScoreCommentsOPPORTUNITY1Cheaper labor cost 0.341.2The company expands into the new area toseek a cheaper labor cost, the target is inAsian and Mexico. 2Sustainability and low energy use product0.220.4The government should impose thesustainability regulations.3Demand for a silentappliances0.3040.3The company should keep improving theirinnovative strategy, because it is one of thecompany’s selling price. 4Changes in customer’s habits 0.2010.2Some customers tend to buy a newappliance in case if the old one is broken.This is a good opportunity for the companyto increase their sales. Total1.002.10No.Key Internal FactorWeightRatingWeightedScoreCommentsTHREATS1Demand for easy to use product and energy savings product0.4541.8In these days, customers tend to demandfor easy to use product as well as energysavings product to save their time.2Availability of the information in the information0.2530.75There is a lot of information available inthe internet, customers could access theinternet very easily and do the comparisonbetween the companies.3Different market requires different marketing strategy0.3020.6The company should have a different kindof marketing strategy because they haveexpanded into the new market.Total1.002.106
Internal Environment: Strengths and WeaknessesCorporate StructureElectrolux operations are divided into six business areas. Within Major Appliances, the business sectors are geographically defined, while the sectors Professional Products and Small Appliances are global. There are five Group staff units that support all business sectors: Finance, Operation, General Counsel, Marketing, and Human Resources.The Group has a decentralized corporate structure in which allows all employees understand their role and chain of command. (S)7
Corporate CultureElectrolux has a strong corporate culture that play a crucial role in achieving its vision. (S)Passion for Innovation: Innovation is a key success of the company. Employees’ idea andcreativity are essential for the company to seek for new opportunity on developing newproducts for customers and creating value for the company itself.