The paper analyses the competitiveness of Electrolux as a multinational corporation. There are reasons that make the company to be fit for competition with the local Chinese manufacturers of home appliances. The paper also discusses how Electrolux is influenced by the resource based view in its strategy. In view of Porters four generic strategies, Electrolux would be much safer with cost leadership strategy and differentiation. The company has shown leaning towards making itself different from others with the unique products and services. Finally, the corporate culture of Electrolux has sustainability and leadership development as some of the key attributes that also contribute to its competitiveness.
Keywords: Electrolux, strategy, …show more content…
The company has markets in different parts of the world such as North America, South Asia, Latin America, Western Europe and Africa. The Asian market is expected to increase significantly, and this provides great opportunities for Electrolux to compete with its unique products. Electrolux can compete with the local Chinese consumer manufacturers owing to the great investments that the company has made in areas such as innovations, research and development. The company is more competitive than the local Chinese manufacturers because of its focus on the quality of the products. There is a deep commitment to producing products of high quality to ensure that customers get good value. Electrolux is also more competitive than local Chinese manufacturers because of the unique products that show innovation and great designs. This is a feature that differentiates the company from any other players in the market. In general, Electrolux has resources that are valuable, rare and costly to imitate. This makes the company to have a sustainable competitive advantage over the local Chinese manufacturers. The innovations that go towards the products of the company cannot be copied by the local competitors, and this is partly why the company has sustained its competitive advantage in its major markets in North America, Europe and South Asia. These are markets that local Chinese manufacturers have not …show more content…
Discuss which of these would work best for Electrolux.
Cost leadership:
With the cost leadership strategy a firm sets out to be a low cost producer of goods or services. In this regard, the firm can be referred to as the cost leader. Low cost leadership can be achieved through economies of scale where the company produces a standard product to a wider consumer group (Griffin, 2015).
Differentiation is the second generic strategy by Porters and it emphasizes on a firm producing unique products that make it stand out from the competitors. Differentiation can also be achieved through exceptional customer service (Griffin, 2015).
Cost focus strategy involves an organization assuming that there is a narrow strategic scope in the industry. One segment or a group of segments are selected in order to focus the strategy. The company therefore remains cost conscious when dealing with all matters of a specific segment in order to be competitive (Griffin, 2015).
Focus differentiation is achieved when the organization decides to focus its differentiation on a particular segment or group of segments. The company assumes that customers are willing to pay more to get some products or services of a particular segment (Griffin,