StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Electrolux challenges in the appliance industry - Essay Example

Comments (0) Cite this document
Summary
Although it is a famous manufacturer producer all over the world, The Company has faced numerous operations challenges over a long period of time. During the market recession time, the company had tried to achieve…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.7% of users find it useful
Electrolux challenges in the appliance industry
Read TextPreview

Extract of sample "Electrolux challenges in the appliance industry"

Electrolux challenges in the appliance industry College AB Electrolux Company was founded in 1908 by Axel Wenner-Gren. Although it is a famous manufacturer producer all over the world, The Company has faced numerous operations challenges over a long period of time. During the market recession time, the company had tried to achieve its vision through making several transitions of producing different product to meet the market demand. The first transition that Electrolux had done was when World War II started; they have produced air filters and steel fittings instead of the vacuum cleaner (Hill & Jones, 2012). This new product line had provided a new opportunity for company to develop sustainability. Moreover, reducing the cost always could be an efficient way for the Electrolux’s sustainability, the company has relocated approximate 60% of its manufactures to low cost countries like China, India, and Mexico, and it also has reduced its overall energy consumption. In addition, Electrolux has focused on few issues, such as climate change, sound business practices, responsible sourcing and restructuring (Hill & Jones, 2012). Those new strategies helped Electrolux to gain more customer, saved more asset for more investment, furthermore, the strategies helped company to receive more subsidize from the government, this was a major way helped the company’s sustainability directly.
The strengths of Electrolux is that it is a well-established company who has kept their head above water and have emerged a greater threat in the market due to their cost efficiency strategy. Electrolux does encounter weakness in their market, mainly currency risk due to operating in dozens of separate counties. Due to their manufacturing utilizing 20% of raw materials they face a larger manufacturing cost as well (Hill & Jones, 2012). Electrolux’s major threats are their number one competitor Whirlpool, as well as increase in labor costs due to Asian wage rises. However Electrolux does have many opportunities they can capitalize on such as becoming the leading socially responsible company in their market. Also the rise in the middle class population suggests that appliances demands should rise which leads to an increase in sales revenue (see appendix A).
To measure the efficiency of Electrolux, it is noticeable that the company is not efficient due to its low operating margin. To fix this problem, Electrolux should consider the economic recession and focus more on the inelastic products such as washers and dryers. Since they are a necessity, consumer will spend money on them regardless of their income, so an increase in price will increase the operating margin. When looking at the quality, Electrolux is doing a well in the consumer durables sector; however, there is not enough focus on the professional products sector because the sales were very low compared to consumer durables. Considering that professional products have the highest growth rate and the highest margin products, it should invest more to improve its quality which will lead to an increase in sales. Innovation and consideration of the consumer needs play a huge role in this industry; therefore, Electrolux should ask for customers’ feedbacks and suggestions through its website to understand their needs and develop the right products for them. Electrolux is offering high quality products for a high price, so it is not responding to the other classes’ needs. By doing so, it losing a lot of market share especially that the number of middle class households is increasing. Therefore, the company should extend its product line and create suitable products for low-income class, middle-income class, and high-income class.
References
Charles W. L. Hill & Gareth R. Jones. (2012). Strategic Management: An Integrated Approach.
New York: Cengage Learning
Appendix A Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Electrolux challenges in the appliance industry Essay”, n.d.)
Electrolux challenges in the appliance industry Essay. Retrieved from https://studentshare.org/management/1608748-electrolux-challenges-in-the-appliance-industry
(Electrolux Challenges in the Appliance Industry Essay)
Electrolux Challenges in the Appliance Industry Essay. https://studentshare.org/management/1608748-electrolux-challenges-in-the-appliance-industry.
“Electrolux Challenges in the Appliance Industry Essay”, n.d. https://studentshare.org/management/1608748-electrolux-challenges-in-the-appliance-industry.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Electrolux challenges in the appliance industry

How to create competitive advantage for Chinese companies

...concepts of competitive advantage 13 2.5 Globalization and growth 16 2.6 Country-of-origin (COO) effect 17 2.7 China’s outward FDI 18 2.8 Motives for internationalization 18 2.9 Entry modes adopted by Chinese firms 20 2.10 Challenges faced by Chinese firms in internationalization 21 2.11 The Home appliance industry 23 2.11.1 Global home appliance industry 24 2.11.2 China’s home appliance industry 24 2.11.3 International expansion strategy in the home appliances sector 26 2.12 Summary of the chapter 27 Chapter III Methodology 3.1 Research Philosophy 28 3.2 Purpose of Research and research phenomenon 28...
60 Pages(15000 words)Dissertation

The Electronic Appliance Maker And Marketer (Samsung)

.... Samsung is an ideal company for this analysis due to its unique and innovative ways of doing business in the consumer appliances sector (Clegg, 2011). This paper has employed two tools for analysis as described above in line with the guidelines set for writing the paper. Background Samsung operates in the consumer appliances and consumer electronics industry, manufacturing and marketing a variety of products which include mobile phones, TVs, Washing Machines Etc. The Company has successfully controlled the vast global market for consumer electronics managing to stay on top. Headquartered in Samsung Town, Seoul, South Korea, Samsung was founded in 1939 by the family of its current CEO...
11 Pages(2750 words)Essay

Major ethical challenges for/in Hospitality industry

...? MAJOR ETHICAL CHALLENGES IN HOSPITALITY INDUSTRY By 6th, April, The hospitality industry today faces major challenges compared to the past decades, including high competition and the overall decreased travel levels in different regions, in addition to the present hard economic times. These factors might have detrimental effects to the industry if not well managed. Therefore, most hospitality companies struggle to cope with these challenges, and sometimes, have gone overboard in their struggle to overcome the challenges. According to Beck, Lazer, and Scmidgall (2007), these factors contribute to the “questionable and...
11 Pages(2750 words)Essay

Technology Appliance in Saudi Arabic Education

...? Discussion The attempt of this study has been to find out the attitude of Saudi Arabia toward applying computers and instructional technology in education. According to the findings of this study, using instructional technology in education has been acknowledged by the students as a highly effective tool for learning and they generally welcome its application in their classrooms. This finding is relevant for the context in which Kay (1990) and Mackowiak (1989) have found out that cognitive attitude and experience are the best predictors for the commitment to the use of computers. Gardner (1985) has also drawn attention to the importance of attitudes in the learning process. Though the students seem to be greatly excited... Discussion The...
2 Pages(500 words)Term Paper

Case 10.1. Electrolux company

...?Case 10 Summary This case was extremely interesting to look at. Here we are looking at this company, Electrolux, who has its individual departments as most companies do and like a lot of newer companies, isn’t doing the best when it comes to sales. The company had been steadily losing over two years, and then all of a sudden, with a few changes in the company “style,” there is a profit being made. What the company did to make this tremendous turn-around is instead of letting each of the departments, like marketing and design, work independently from one another on the same project, they came together and worked as a team. This allowed for stronger visions for a product and newer insight on what different demographics...
2 Pages(500 words)Essay

The Australian Tourism Industry : Importance and challenges

...of the Tourism of the Concerned 15 August The Australian Tourism Industry- Importance and Challenges Introduction There is no denying the fact that tourism in Australia happens to be quiet an important industry. The Australian tourism industry is driven by people’s innate propensity for visiting places that command a cultural and natural significance and engaging in adventure and fun activities. However, the issue with the Australian tourism is that the very features that attract tourist attention also tend to threaten the very sustenance and viability of these natural and cultural tourist attractions. Thereby, it goes without saying that though tourism in Australia...
4 Pages(1000 words)Essay

Critical challenges faced by automobile industry

...Environmental Scan Executive Summary The automobile industry is facing several critical challenges in the near future in terms of the economic and social forces that are driving the automobile market. The ways in which these challenges are met will determine whether the firm will be a success or failure. While the current environment could best be described as risky, with careful deliberation it offers several opportunities to increase sales and revenue. A positive force that is affecting the automobile market is the growing demand for automobiles. In addition, it is projected that sales will escalate further when manufacturers begin to adopt some of the safety features such as adaptive...
2 Pages(500 words)Essay

Challenges in The Music Industry

...Running head: Challenges in The Music Industry of Abstract This paper examines the challenges experienced in the music industry. It investigates how music companies and musicians survive in the modern age of widely available free digital downloads and falling sales of CDs. It compares the traditional music industry environment with the new environment. It examines the challenges that have come with the new environment. It then proposes the possible solution to enable the music industry players make money amid worldwide falling CD sales. It also suggests a number of innovative strategies that would work in the current environment, proposing the kind of business models that can work in this environment... . For instance, Universal Music Group...
10 Pages(2500 words)Essay

California Challenges and Future Industry Paper

...California challenges and future industries Introduction Over the last few decades, California has been facing short term as well as long-term challenges. Some of these challenges are regular besides have been developing and evolving over the years. This is because of corrupt human activities such as deforestation and bad political leaderships. Both the short and long-term problems can be overcome through working to restore the situations, taking preventive measures besides coming up with sound policies to safeguard the existing ecosystem. This is because there are no known short-term solutions to diminish the currently existing and regularly occurring...
5 Pages(1250 words)Research Paper

AB Electrolux Challenges Times in the Appliance Industry

...including Mexico and china (Hill & Jones, 2012). Their goal was to reduce it overall consumption of energy by 15% of its 2008 levels by 2012 to achieve efficient consumption of energy in its manufacturing. The company has also launched a green product range in all its business sectors to heighten its awareness of its energy efficient and products that are considerable to the environment. The other strategy was a move to outsource its production from developed countries in a bid to come up with high quality products. However, the company needs to be mindful of the cost of labor in such countries which is fast rising (Hill & Jones, 2012). The company has also embraced advanced technology to meet the changing demand and tastes of...
1 Pages(250 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Electrolux challenges in the appliance industry for FREE!

Contact Us