(Teece, 1997). Electrolux has established itself as a strong global brand with quiteattractively designed and innovative products. As a consequence, the Electrolux brand hasfound its way into being positioned in the profitable mass premium segment on the globalstage. The company’s highly talented and trained employees from diverse cultures alsoposition the company not be easily copied by local Chinese manufacturers. Organization StructureElectrolux has a decentralised corporate structure in which the company’s operationsare managed by business area boards. The firm’s presence in over 150 countries around theworld ensures Electrolux has a better geographical coverage (Homesphere, 2015).Electrolux also has one of the most effective distribution systems which ensure that itsproducts reach the intended markets in time. This structure offers Electrolux a competitiveadvantage over its local Chinese manufacturers. Electrolux IndustryElectrolux generally operates in a fragmented industry. This is largely due to the factthat there is a variety of products that are produced with each suiting a particular lifestyle(Homesphere, 2015). Since Electrolux manufactures products in different categories,specialization is one factor that can enhance the organization’s competitive advantage. Thiscan be achieved through training its different staff on the various product lines henceincreasing their core competencies. Porter’s Four Generic Strategies
Porter’s generic strategies were derived on the basis of a firm’s main competitiveadvantage in relation to its competitors. Porter (2008) argued that for an organization toensure long-term profitability, the firm must pursue one of the generic strategies ratherending up being “stuck in the middle.”Cost LeadershipLower costs and cost advantages are often a result of process innovation, utilizationof learning curve, and economies of scale just to mention a few. In order to obtain costleadership, Gurău (2007) argues that a firm must essentially obtain a relatively high marketshare and this is often associated with large capital investment in product R&D. This strategycan be effectively implemented upon a business designing, producing and marketing acomparable product more efficiently than its competitors.Differentiation StrategyIn this strategy, a firm creates a product or service that fulfils a unique customer
You've reached the end of your free preview.
Want to read all 6 pages?