Case Study: AB Electrolux

Week 8 Assignment
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Institutional Affiliation
Abstract
This assignment is an analysis of the global competitive strategies of AB Electrolux, specifically focusing on the Chinese market. Introduction: AB Electrolux manufactures and sells consumer appliances established in 1919. The company sells over fifty million appliances in more than one-hundred-fifty nations every year. Competing With domestic Manufacturers in China: Electrolux has a lot of experience, resources, and determination. For this reason, the company will favorably compete with the Chinese consumer companies. Besides, Electrolux’s decision to focus on a specific market would help the company's market share to grow, hence favorable competition. Three Leading Perspectives: The analysis of the company's leading perspectives is vital for determining the efficiency and competency of Electrolux. Moreover, the VRIO framework would be essential in ensuring thorough assessment of the organization’s internal resources. Porter’s Generic Competitive Strategies: These strategies include, low cost focus, differentiation, cost leadership, differentiation focus as well as cost leadership strategy. The most appropriate strategy for AB Electrolux would be cost leadership. Corporate Culture and Distinct Attributes: Electrolux's corporate culture bases on understanding the consumers' needs and support for the demands of the company. Electrolux’s unique attributes include diversity and development of leadership. Besides, Electrolux has stakeholders from various backgrounds and leadership programs that equip prospective managers with the necessary skills. Conclusion: Electrolux is a multinational company that has managed to emerge as a prominent consumer Appliance Company capable of competing with any rival organization.
Keywords: AB Electrolux, Porter’s strategies, Barney’s VRIO framework, Appliance manufacturers, China, multinational.
Week 8 Assignment
Introduction
AB Electrolux is a company that originates from Sweden established in 1919. The company manufactures world-class consumer appliances. Over the last couple of decades, AB Electrolux has been through significant regulations that have made the company grow, and it managed to emerge as a prominent player in the consumer appliance industry globally. Besides, it is the second biggest global manufacturer of consumer appliances, right behind its United States rival, Whirlpool. The company has offices in more than sixty countries across the globe. According to an annual report, Electrolux sells over fifty million appliances every year in over one hundred fifty nations, employing thousands of workers (Electrolux, 2014). Today, the company sells its products in over one hundred fifty countries. AB Electrolux's success stems from its groundbreaking business strategies, which enable it to produce and sell high-quality products at considerably affordable prices. Besides, the company utilizes Barney's VRIO framework as well as applying Porter's generic strategies, which enable it to evaluate its competence and then improve its service delivery to the consumers. Such plans allow the company to favorably compete or even out-compete all the other profound appliance companies around t...