RIVALRY AMONG COMPETITORS HIGH The main competitors of Electrolux are Whirlpool

Rivalry among competitors high the main competitors

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RIVALRY AMONG COMPETITORS: HIGH The 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 differentiated from 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
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EXTERNAL FACTOR ANALYSIS SUMMARY No. Key Internal Factor Weight Rating Weighted Score Comments OPPORTUNITY 1 Cheaper labor cost 0.3 4 1.2 The company expands into the new area to seek a cheaper labor cost, the target is in Asian and Mexico. 2 Sustainability and low energy use product 0.2 2 0.4 The government should impose the sustainability regulations. 3 Demand for a silent appliances 0.30 4 0.3 The company should keep improving their innovative strategy, because it is one of the company’s selling price. 4 Changes in customer’s habits 0.20 1 0.2 Some customers tend to buy a new appliance in case if the old one is broken. This is a good opportunity for the company to increase their sales. Total 1.00 2.10 No. Key Internal Factor Weight Rating Weighted Score Comments THREATS 1 Demand for easy to use product and energy savings product 0.45 4 1.8 In these days, customers tend to demand for easy to use product as well as energy savings product to save their time. 2 Availability of the information in the information 0.25 3 0.75 There is a lot of information available in the internet, customers could access the internet very easily and do the comparison between the companies. 3 Different market requires different marketing strategy 0.30 2 0.6 The company should have a different kind of marketing strategy because they have expanded into the new market. Total 1.00 2.10 6
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Internal Environment: Strengths and Weaknesses Corporate Structure Electrolux 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
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Corporate Culture Electrolux 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 and creativity are essential for the company to seek for new opportunity on developing new products for customers and creating value for the company itself.
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