Appendix 6 presents strategic group map for the appliance industry. It would be helpful to determine which rivals are most threatening for Electrolux. Treat of substitutes In Porter's model, substitute products refer to products in other industries. This involves the need to adjust and change in order to "fit" the changing environment and the need to "stretch" to exploit organizational resources in ways that are innovative, or that other organizations will find it hard to match.
Electrolux is a leader in developing products with child-safety features, often before their competitors or legislative requirements.
Sometimes, Electrolux intensified product renewal through the investment in product development and launched the new goods at the high rate. GE Appliances can be a threat in a very low level for Electrolux since it manufactures high quality products and most of the products are the same except that GE Appliances produces an induction cook top which is very desirable from consumers.
An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem.
In theory, any firm should be able to enter and exit a market, and if free entry and exit exists, then profits always should be nominal. Identify the main factors about the strategic position of Electrolux.
At the business level, the strategy formulation phase deals with positioning the business against rivals, anticipating changes in demand and technologies and adjusting the strategy to accommodate them, and influencing the nature of competition through strategic actions such as vertical integration and through political actions such as lobbying.
These 3 strategies are helping Electrolux in its attainment of ultimate objective. Shift to low-wage countries to move from the US market after Mexico. For Strategic position of electrolux, the company managed to produce silence vacuum cleaner Ultra Silencer from surveying and assembling consumers that needed more silent appliances.
They will launch a project designed to drastically reduce the number of supplies, and also intensified their cooperation with suppliers in order to cut the cost of components. Suppliers, if powerful, can exert an influence on the producing industry, such as selling raw materials at a high price to capture some of the industry's profits.
Question 6 The Electrolux has a lot of acquisition strategies by running the company until now. Once the higher-level strategy is developed, the functional units translate it into discrete action-plans that each department or division must accomplish for the strategy to succeed.
Strategic drift may become harmful for Electrolux in the case it takes place. Annual Report Electrolux offering Summary CEO statement Vision Mission History Electrolux vision Electrolux is a leading, global appliance manufacturer, commanding strong positions worldwide, and is the only player that offers complete solutions for both consumers and professional users.
Consumers will make a shift from repairing towards purchasing new household appliances. Some other long term issues those Electrolux has taken as strategic — Increasing the productivity, procurement, and logistics efficiency Continuous product and employee development Strengthening the brands of Electrolux Building a strong global brand Scope Scopes of Electrolux captured by Hans Straberg from the annual report are: The Group also holds strong positions for front-load washing machines and dishwashers, which are segments with low penetration in many markets.
Each business area is responsible for implementation. The strategic issues at the functional level are related to business processes and the value chain.
This can be achieved by conducting a forcefield analysis which is presented in Appendix 10 and defines the problems that need to be solved and determines the forces that want change and the ones that do not in accordance with the existing culture of Electrolux. Introducing the case study there are three 3 levels of strategy, which could be.
They also need to use the paradigm, provide signals and symbols internally to Electrolux. Functional Level Strategy The functional level of the organization is the level of the operating divisions and departments. In household appliance industry, consumers have many demands and Electrolux must be able to satisfy them by producing: The intensity of rivalry among firms varies across industries, and strategic analysts are interested in these differences.
This helps the company with — Low cost of serving large retailers Gives the opportunity to lowering the price to attract more customers Makes it easy to reach customers in every geographical location In present days more customers are moving from traditional shops to large chain stores, such as super stores.
In addition, Electrolux should use both economics and symbols for this turnaround situation as for example, greater market research, management members renewal, capital and financial reconstructions or even relocate some of its departments e. In the short-term, Electrolux is deemed to continue being successful but longer-term considerations need to be thought.
Companies use risk management techniques on its business environment, which will help the organization to identify potential future risks and opportunities. Electrolux has a strong corporate culture that originates from the founder of the company, Axel Wenner-Gren.
This is one of the reasons that strategic drift may happen for Electrolux. The Electrolux organization is decentralized, which gives business units flexibility in meeting consumer preferences and local market requirements. Although there is not enough evidence that products of Electrolux have the highest quality, however it has been given that it has entered the premium market category of household appliances and its products are worth for consumers paying a higher price.
For this purpose, strategic decisions usually are trying to achieve any advantage for the organization.
These factors will furnish the environment to identify the threats in advance would have to be addressed, and also opportunities acted on. In reality few pure monopsonies exist, but frequently there is some asymmetry between a producing industry and buyers. They assumed to have most influence upon strategy especially members of the governance structure Appendix 1their decisions and effect is shown in terms of profitability for the firm, therefore they deemed to be core for the company capability of being successful.
Once the higher-level strategy is developed, the functional units translate it into discrete action-plans that each department or division must accomplish for the strategy to succeed.Strategic Position of Electrolux Essay.
Axel Wenner-Gren, the founding father of Electrolux, established the principles by which the company still thrives - Strategic Position of Electrolux Essay introduction. His dream to improve quality of life has had fundamental impact on homes around the world.
The strategic position of Electrolux is concerned with identifying the impact of the external environment, the strategic capability and the expectations of stakeholders on the organization’s strategy.5/5(7).
Dec 14, · Question 3: Identify the main factors about the strategic position of Electrolux. List these separately under environment, capability and expectations. List these separately under environment, capability and expectations.
For the strategic capability of the Electrolux, in the s, there was the biggest acquisition by the Swedish group, for that reason, 75 percent of Electrolux's sales were outside of Sweden by s.
Utilizing the Bowman’s strategic clock (Appendix 8) we can identify the position of Electrolux group in the appliance market. Although there is not enough evidence that products of Electrolux have the highest quality, however it has been given that it has entered the premium market category of household appliances and its products are.
Utilizing the Bowman’s strategic clock (Appendix 8) we can identify the position of Electrolux group in the appliance market. Although there is not enough evidence that products of Electrolux have the highest quality, however it has been given that it has entered the premium market category of household appliances and its products are worth.Download