...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 durables (kitchen products, laundry products, floor care products) and professional products (food service equipment, laundry equipment) which are 40 million products in 150 countries. * Through its acquisition strategy in 1980s and 1990s, Electrolux has acquired different brands in global markets with various brands with half of the 40 million products sold under the global Electrolux brand. Strategic Direction * Principle is to offer products and services that consumers prefer, they benefit both the people and the environment which consumers are willing to pay a h9gher price for. * In the premium market category of household appliances * Consumer driven company with the “Thinking of You” slogan shows that they place importance...
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...Seminar 4: Electrolux AB: Managing Innovation. Problem Essay Group 10: Victoria Gruener, Christophe Vigier , Jiamei Chen, Xavier Cordova, Maria Isabel Durá, Marta Pérez 1. Problem definition: Electrolux AB is the second largest kitchen and home appliances company worldwide. Anton Lundberg and Joakim Rask, the Vice presidents of this company, clearly layout two main areas of concern for the company concerning innovation. They must find a manner to foster collaboration across continents and functions to improve the innovation method and create a culture of innovation wherein change is perceived by everyone in the company as an opportunity rather than a threat. The history of Electrolux is comprised of many mergers with and acquisitions of numerous companies. As such, the company has not only to compete in an evolving market, but it is also forced to address many internal organizational issues as well. 2. Diagnosis: In order to achieve innovation as a strategic source of differentiation, it was necessary to foster collaboration across geographies and functions, which was a challenging task for Electrolux AB because of its organizational structure based on a productcentric approach and the presence of silos in the whole organization. It was also necessary to create an innovation culture within the company, ...
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...with Whirlpool and other companies that are changing the global appliance market. While Whirlpool begins more global expansion it faces a new competitor in the U.S. market, Electrolux. Whirlpool also has other troubles on the home front with a multiple lawsuits. As whirlpool deals with these adversities, they are still pushing forward to remain the major home appliance manufacturer; they have launched a new, authentic ad campaign to continue to earn trust here in its home market. Industry The Swedish company, Electrolux, has recently overtaken Whirlpool as the number one appliance supplier in the U.S. Electrolux just finalized a $3.3 billion deal purchasing GE’s appliance department. As seen in the graphic above, with the acquisition of GE, Electrolux has barely overtaken Whirlpool by just 0.9%. Whirlpool still surpasses Electrolux globally however, with $19 billion in annual sales; $3.1 billion dollars more than Electrolux with $15.9 billion. Whirlpool has declined to comment on the new competition which is detailed in the Wall Street Journal article titled “Electrolux to Buy GE Appliances Business for $3.3 Billion.” This article details the deal and its effect on Electrolux and the North American market. Legal/Technological Whirlpool is facing other harsh conditions besides competition from Electrolux. Whirlpool is also a part of two lawsuits. The first is over a plant in Fort Smith, Arkansas. The plant was found to be leaking trichloroethylene or TCE, a carcinogen, into...
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...Running he WHIRL ead: LPOOL’s GL LOBAL STR RATEGY CA ANAL ASE LYSIS 1 Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.) Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt: WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS 2 Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new leadership of David Whitwam encountered many problems in its early stages illustrated in a declining profitability in its home market, losses in the European market and failure in some of its joint ventures in the Asian market.1 With such poor performance and failure in achieving competitive edges in global markets, Whirlpool was at a great risk of losing huge investments made in foreign markets, and losing highly-potential market shares in emerging international markets to aggressive competitors. The paper illustrates core strategic mistakes around three main strategies; sourcing and operations, entry, and marketing strategies adopted. The goal is to address lessons learned from Whirlpool’s experience in globalization in order to shed...
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...M17_HOLL6227_05_SE_C17.qxd 5/20/10 4:06 PM Page 641 CASE STUDY IV.3 Dyson Vacuum Cleaner: shifting from domestic to international marketing with the famous bagless vacuum cleaner The Dyson history It is impossible to separate the very British Dyson vacuum cleaner from its very British inventor. Together they are synonymous with innovation and legal battles against established rivals. James Dyson was born in Norfolk in 1947. He studied furniture design and interior design at the Royal College of Art from 1966 to 1970 and his first product, the Sea Truck, was launched while he was still Courtesy of Dyson. studying. Dyson’s foray into developing vacuum cleaner technology happened by chance. In 1978, while renovating his 300-year-old country house, Dyson became frustrated with the poor performance of his conventional vacuum cleaner. Whenever he went to use it, there was poor suction. One day he thought he would find out what was wrong with the design. He noted that the appliance worked by drawing air through the bag to create suction, but when even a fine layer of dust got inside, it clogged its pores, stopping the airflow and suction. In his usual style of seeking solutions from unexpected sources, Dyson noticed how a nearby sawmill used a cyclone – a 30-foot-high cone that spun dust out of the air by centrifugal force – to expel waste. He reasoned that a vacuum cleaner that could separate dust by cyclonic action and spin it out of the ...
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...Electrolux: The Acquisition and Integration of Zanussi 1) How would you describe the key characteristics of Electrolux and Zanussi in 1983, in terms of strategy, organization, capabilities, and performance? International acquisitions have become an extremely important vehicle for growth for multinational companies. In this case, and because of the particular industry in which Electrolux operated in, the trend of the whole appliance industry was facing a long period of crisis. Although Electrolux was and still is one of the largest manufacturers of white appliances, many other manufacturers were now taking market share away from the Swedish company. For example, Philips and Siemens were now introducing a complete and economic line of brand new appliances. Electrolux's core business was vacuum cleaners and absorption-type refrigerators. Electrolux was and still is the typical Swedish firm, which emphasizes on down to earth management: everyone works and keeps his word and all the information is correct. The firm emphasis on technology and advancement and the middle management is open to advises from the workers. But at the core of Electrolux business strategy was the aggressive plan to expand through acquisitions. First, Electrolux concentrated on acquiring firms in the Scandinavian Area. Then the company continued focusing in purchasing companies that had assets but were not profitable so that they could turn their business around. After making more than 200 acquisitions in 40...
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...SALLE GRADUATE SCHOOL SY 2014-2015 MARKETING MANAGEMENT (MBA 208) A Case Analysis for Electrolux: Refrigeration and Segmentation Submitted to: Jacqueline Felix,PhD Submitted by: Johnel Fil Arcipe Arbe Bertuso Patricia Bilbao Justice Marie Canoy Dixon Cogal December 20, 2014 I. Executive Summary Electrolux is a global leader in home appliances and appliances for professional use, selling more than 50 million products to customers in 150 countries every year. The company focuses on innovations that are thoughtfully designed, based on extensive consumer insight. Axel Wenner Gren is the founder of Elektrolux Company which began its operations with the introduction of a new type of vacuum cleaner. In 1912, the world’s first household vacuum was introduced. It was in 1925 when Elektrolux absorption refrigerator was launched. It was invented by Swedish Engineering students from Royal Institue of Technology in Stockholm named Baltzar von Palten and Carl Munters. Wenner-Gren is a marketing genius and it helped him directed its mission to be the major household appliance manufacturer in the world. Elektrolux later changed its named to Electrolux in 1957. More of Electrolux products succeeded. Electrolux products include refrigerators, dishwashers, washing machines, cookers, air conditioners and small appliances such as vacuum cleaners, all sold under esteemed brands like Electrolux, AEG, Zanussi and Frigidaire. The company trades more than 40 million goods...
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...Business School Lausanne 2011 Dyson Vacuum Cleaner Case study Sargis Sargsyan BSL Table of Contents History……………………………………………………………………………………………………2 Dyson company and world market………………………………………………………3,4 Competitors………………………………………………………………………………………5,6,7 Question1…………………………………………………………………………………………….7,8 Question 2……………………………………………………………………………………………8,9 Question 3………………………………………………………………………………………………9 Conclusion……………………………………………………………………………………………10 Dyson Vacuum Cleaner History Dyson Company is one of the leading companies in vacuum clear industry. The company was founded by James Dyson, who is a furniture and interior designer and his product was launched in 1966, when he was student. In 1985 James Dyson had contracted with a small company in Japan. Than in 1993 Dyson opened a research center and factory in Malmesbury by using the money from the Japanese company and developed dual cyclone vacuum cleaner, which became the fastest selling vacuum cleaner in UK. Fourteen years later Dyson could present its first product in the shop and it also presented in the Science Museum. Dyson started to develop Root 8 Cyclone, which removes more dust by using more cyclones. In 2000 he launched new innovative washing machine and in 2008 the company’s revenue reached around 700 million pound, and much of this came from vacuum cleaners sales, about two third, in outside of local market mainly from US, Australia and Japan. So now Dyson Company is one of the successful vacuum...
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...Running he WHIRL ead: LPOOL’s GL LOBAL STR RATEGY CA ANAL ASE LYSIS Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.) Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt: 1 WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS 2 Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new leadership of David Whitwam encountered many problems in its early stages illustrated in a declining profitability in its home market, losses in the European market and failure in some of its joint ventures in the Asian market.1 With such poor performance and failure in achieving competitive edges in global markets, Whirlpool was at a great risk of losing huge investments made in foreign markets, and losing highly-potential market shares in emerging international markets to aggressive competitors. The paper illustrates core strategic mistakes around three main strategies; sourcing and operations, entry, and marketing strategies adopted. The goal is to address lessons learned from Whirlpool’s experience ...
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...that produced the popular Tsingtao beer. Haier became a conglomerate electrical home appliance and consumer electronic products company. Its core business was white goods—refrigerators and freezers, ranges, and microwave ovens, dishwashers, and washing machines and dryers—and room air conditioners. Later, it diversified into mobile telephones, television receivers, personal computers, and even financial services and pharmaceuticals. Overall it produced 96 different product lines comprising 15,100 different product specifications. It employed over 35,000 people worldwide. Haier was one of the world’s seven biggest home appliance makers—along with LG (Goldstar) Group and Matsushita headquartered in Asia; Whirlpool and GE in America; and Electrolux and Bosch-Siemens in Europe. Haier was widely regarded as China’s “Most...
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...rP os t Sw W12079 STRATEGIC SOURCING AT WHIRLPOOL CHINA: FINDING THE IDEAL SUPPLIER op yo Dr. Martin Lockstrom, Thomas E. Callarman and Shengrong Zhang wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2012, CEIBS Version: 2012-06-19 tC It was April 10, 2011, when Gianluca Castelletti, head of Whirlpool’s Asia International Procurement Office in Shanghai, was informed by his colleagues that the company was about to launch a new refrigerator model in just six months. With the current worldwide focus on energy saving, and as one of the biggest home appliances producers, Whirlpool China planned to introduce a new energy-efficient refrigerator. No Castelletti immediately spotted a challenge in Whirlpool...
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...WHIRLPOOL INDIA LIMITED Background Whirlpool of India Limited (WIL) is an 82.3 per cent subsidiary of Whirlpool Corporation, US, one of the leading global consumer durable players. Whirlpool is among India’s leading home appliances companies. It manufactures and markets refrigerators, washing machines, airconditioners and microwave ovens. Set up in 1995, Whirlpool India has 2,500 employees, network of 2,500 strong, an extensive sales and distribution network, a robust manufacturing and R&D infrastructure. WIL has made substantial investments in India so far. Whirlpool Corporation is one of the world’s leading manufacturers and marketer of major home appliances, with annual sales of over US$ 12.3 billion, 68,000 employees, 50 manufacturing and technology research centres around the globe. The company manufactures its products in 13 countries and markets them in more than 170 countries under brand names such as Whirlpool, Kitchen Aid, Roper, Estate, Bauknecht, Ignis, Laden, Inglis, Brastemp and Consul. Major player in the home appliances market Market share WIL has a market share of 22.8 per cent in the direct cool segment, 17.5 per cent in the frost-free segment, and 14 per cent in the washer segment. Factors for success Aggressive marketing and promotion initiatives Whirlpool India Ltd. has changed its strategy from being a premium-player to a mass-player. Whirlpool has been concentrating on becoming a brand for the mass-market and hence has introduced its products...
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...7% in May 2012 against 18.3% of Voltas. Samsung retained its third slot in room ACs but its market share has plunged from 14.5% in July 2011 to 10% in May 2012. The drop was a result of it vacating the window AC segment this year; now it is not far behind Japanese brand Panasonic, which has doubled market share to 9.9% in the last 10 months. Even Hitachi increased its market share from 5.2% to 7.3% in the period. Players Brand | Company | Onida | Mirc electronics Limited | Videocon | Videocon International Limited | LG | LG Electronics India Limited | Samsung | Samsung India Electronics Limited | Whirlpool | Whirlpool of India Limited | Godrej | Godrej and Boyce Mfg. Co. Limited | Voltas | Voltas Limited | Electrolux | Electrolux Kelvinator | Blue Star | Blue Star India Limited | Daikin | Daikin Industries Limited | Past Market Share Name of the Company | 2002-03 | 2005-06 | 2007-08 | Blue Star | 14.53 | 16.51 | 17.98 | Voltas | 12.12 | 11.95 | 14.11 | L G Electronics India Pvt. | 13.54 | 18.85 | 13.2 | Samsung India Electronics Pvt. | 3.93 | 7.01 | 6.88 | 2. Washing Machine The Indian washing machine market continues its high growth trajectory, albeit the annual growth rate has come down from 38 percent in FY 2010 to 24 percent in FY 2011. The total market of washing machines in FY 2011 was 4.7 million units. The market is dominated by four players - LG, Samsung, Videocon group, and Whirlpool - with a combined share of 74.6 percent...
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...fridges and freezers, coffee machines, air conditioners, heaters, TVs, recording devices etc. The global market for household appliances can be split into two parts. 1. Mature markets (Western Europe, North America, Japan and Australia/New Zealand) : * Population growth is low. * Sales are dominated by replacement products. * Consumers are more conscious about Green aspects of every product. 2. Growth markets (Africa, the Middle East, Eastern Europe, Latin America, Southeast Asia and China) : * Rapidly rising standards of living. * Growing middle class per capita income. * Higher economic growth. GLOBAL MAJOR HOME APPLIANCE PLAYERS Whirlpool | LG Electronics | Haier | Samsung | Bosch-Simens | Electrolux | MIdea | | Company Overview: Whirlpool Whirlpool (WHR) a US based company ,is one of the world’s leading household appliance manufacturers, which specializes in laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. These household appliances are sold under various brand names, including Whirlpool, Maytag, Kitchen Aid, Jenn-Air, Amana, Roper, Estate, Admiral, Gladiator, Inglis, Acros, Supermatic, Consul, and Brastemp. Whirlpool has largest markets share in USA. Under The guidance of CEO Mr. David Whitman, Whirlpool could see the opportunities in growth market and could conclude to control own destiny and shape the very nature of globalisation. * VISION:...
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...waste if you don’t have the correct thing to clean with it. • Pet Problem: If you have a pet and a carpet then you should consider a cleaner with a brush. The brush is essential because your pet may shed more often than you do (and they do). For an intense, deep clean, hygienic feel, the need of a beater bar cleaner is mandatory. In that case, the option of a beater bar is better than any other you may consider. Now, there is another argument. If you don’t have a carpet but a pet, then again the cleaner with a brush is unnecessary. The cleaner with a brush has no use in a house with no carpet. The main thing that matters here is the carpet. If you don’t have a carpet, it doesn’t really matter what you chose. • Power: I have mentioned this point many times before but this is the full brief part where you understand it. If you have a cleaner with enhanced equipment, the costing will become more. If you have that enhancement running, you are likely to use more power. If you are using more power in your need, then it is not an issue. But if you are using moiré power needlessly, then it cannot be good for the environment and your pocket. In that case, preferring and opting for the best one in the most cost cutting way is the best option that you should consider. If the need is not that of a brush, you can easily have a regularized one. That will use less power, will have the same effectiveness and most probably have a quicker user time. Which Is The Best Option - A beater Bar or A...
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