Case Study – Electrolux

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Review the corporate strategy of AB Electrolux: found here: http://group.electrolux.com/en/category/about/

As the social and demographic trends continue to evolve so do the opportunities afforded to Electrolux. The most

significant demographic shift globally is the growing middle class in Asia, which includes families with incomes between

US$6,000 and US$30,000. It is estimated that by 2030 there will be 3 billion more people in the global middle class than

there were in 2013.(Ernst & Young, 2013)

Correlated with rising incomes worldwide, homeownership has also increased at a substantial rate giving rise to increased

demand for consumer durables such as refrigerators, washing machines, and dishwashers. (Electrolux, 2013)

Electrolux (2013) Electrolux 2013 Annual Report. Retrieved from http://group.electrolux.com/en/company-overview-271/

Ernst & Young (2013) Hitting the sweet spot. Retrieved from http://www.ey.com/GL/en/Issues/Driving-growth/Middle-class-

growth-in-emerging-markets

In a 1000 – 1500 word essay discuss the following:

1) Use Barney’s VRIO framework to analyze the competencies of Electrolux. Discuss whether AB Electrolux can compete with

local Chinese consumer manufacturers.

2) Identify whether Electrolux operates in a fragmented or a consolidated industry. How would its competitive strategy

differ in each?

3) Identify Porter’s four generic strategies. Discuss which of these would work best for Electrolux.

4) What is the corporate culture of Electrolux? Discuss two distinct attributes of culture within the organization.




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