Essay Electrolux Case Analysis

1345 Words May 15th, 2014 6 Pages
Electrolux Case

Introduction * In 1912, Electrolux produced the first household vacuum cleaner known as the Lux 1 and in 1925, Electrolux entered the refrigerator market. * In 19151 first household washing machine and 1959 first household dishwasher was introduced. * Acquired over 300 companies from various countries and in 1997, Electrolux began restructuring program to improve its bottom line. * After success in the European markets, Electrolux appliances were introduced in North America in 2004 and Hans Straberg was appointed President and CEO in 2002. * Electrolux is worlds second largest appliance maker behind Whirlpool, 50,000 employees in over 50 countries

Product Offerings & Brands * Sells consumer
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* To satisfy consumers, many companies are developing more and more energy star approved efficient products and in a environmentally friendly manner. * Paper published in 2008 showed that appliances are inelastic which means that appliances are a necessity * Appliance industry is mainly dominated by Electrolux and Whirlpool . Industry market capitalization is about 10 billion with industry profit margin of approximately 8.42%.

Competition * Whirlpool, only appliance industry ha a market capitalization of over 6 billion. * Prior to 2006, Electrolux was first but since Whirlpool acquired Maytag, that changed. * Whirlpool has 20 billion in sales, operating margin of 5.8% and growth rate of 8.8% which is below industry average of 29%. * Pro0ducts are medium cost and quality. They excel beyond the generic counterparts but fall behind in features of any luxury appliance brands offer. 67000 employees. * GE Appliances, subsidiary division owned by GE has product ix similar to Electrolux, they produce high quality ranges, overs, refrigerators similar to Electrolux products. * GE has a market capitalization of over 167 billion with one benefit being that with a diversifiable company, it can use resources from another division and reallocate resources to the appliance subsidiary if needed. * LG Electronics is

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