Electrolux - Essay Example

Global Marketing 392A Electrolux Electrolux Question It is true that the strategic move by Electrolux’s experts to base their organization in North America was a brilliant idea. The move was fundamental in upgrading the organization from assembling a single vacuum cleaner to the second-largest home appliance maker in the world. In his presentation, Mr Applebee observed that Electrolux organisation’s success is as a result of high level of creativity leading to the introduction of new products into the market.

Others are developing a highly qualified staff with progressive technical know-how, using various sales mix such as tradeshows and advertising to develop the brand awareness. Finally, training the public on the products’ usage and developing an effective and efficient distribution network within the industry are also this companys success (Applebee). Electrolux has also been reported in its Annual Reports of between 2006 and 2011 to have progressively made a dynamic transformation into an innovative consumer-focused company, a move that has changed its operations around the world (Electrolux).

It also developed a working capital program which has aided the organisation in increasing the capital turnover-rate excluding acquisitions. The program has also increased the workers’ understanding of the operation, resulting in more realistic sales forecasts and an improved service level to the customers. Question 2: Alongside the above-discussed advancements in terms of development leading to the success of this organization, I would increase the firm’s franchise by establishing new stores in potential markets, such as Middle East.

Saudi Arabia, for instance, is a perfect market for Electrolux’s products since it is among the richest countries in the globally, and it is famous for booming businesses. Saudi Arabia’s Whirlpool brand is, so far, the best home appliances brand in the country, and it has the best selling rates in the market even though it is a well-known imported product. I would, for this reason, export Electrolux’s appliances to Saudi Arabia, and sure enough, it will win the competition. This is because it has the same quality and is famous in the world market as the second-largest home appliances brand with pocket-friendly prices.

In addition, the returns in terms of profit would be high since there is no income tax in Saudi Arabia. Question 3: If I were the Electrolux Senior management, I would, firstly, grab the business opportunity in Saudi Arabia because of the reasons discussed above. Secondly, I would consider investing in North American start-up operation since there are some unexploited areas with potential business thrive. Some of these regions include Idaho, Texas, Oklahoma and Utah. Bruner reported that these four states won overall “A+” grades for low taxes, ease of hiring employees and enabling environments for small and medium operations to flourish (Bruner).

In my opinion, Electrolux should aim at opening its branches in more potential locations across the globe to see its organisation to the next level. I believe that this brand would be number one in the world if the organisation could just increase its popularity by establishing itself in more places in the world since this is its major setback. They should also aim at implementing strict norms and efficient processes to ensure that all operations are for the good of the organisation’s long-term value.

Electrolux should also improve its global advertisements to familiarise with its target market. All said and done, it is the vision of the company to become the best appliance company in the world as measured by its stakeholders. Finally, the group’s leading global position to generate a healthy total return of the shareholders is achieved through the financial goals set to strengthen it. Works Cited Applebee, Scott. “Electrolux Presentation” 10 October 2014. Bruner, Jon. Americas Friendliest Places for Starting a Business. Magazine. New York: Forbes Magazine, 2012. Web. 14 October 2014. . Electrolux.

“Results.” Electrolux Annual Report Financial Review (2012): 12-15. Web. 14 October 2014. .