Electrolux: Functions, Achievements,SWOT Analysis and a Corporate Culture (Essay Sample)

Electrolux.
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Electrolux.
Electrolux, a multinational company, based in Stockholm, Sweden, is a global leader involved in the production of professional household appliances. Established in 1919, AB Electrolux has been selling a bunch of 50 million products plus to their customers in more than their 150 markets globally (Electrolux, 2015), with the leading markets in US and Brazil.
The Electrolux Company has been a great achievement since they focus on unique innovations and unique designs that are based on their customers' preferences. With this, Electrolux meets the needs of their customers and their professionals. Electrolux's products are refrigerators, dishwashers, cookers, air conditioners, vacuum, cleaners, washing machines and other small domestic appliances like iron boxes.
AB Electrolux's strategy is based on four majors. The majors include; profitable growth, innovation, and operational experience, People, and Leadership. In profitable growth, Electrolux increases the shares in recent, young markets and strengthens its position in the core market for the group. Electrolux also deals with acquisitions, by focusing on high-growth categories of products hence developing service and aftermarket operations, reducing manufacturing, production and complexity. In innovation, Electrolux integrates marketing, R&D and design.
Sustainability remains a core element of the group's strategy. Their operational experience ranges from low-cost manufacturing to manufacturing in low-cost areas. Electrolux has an innovative corporate culture with their employees hailing from various backgrounds hence the development of products for customers all over the world. Their dedicated employees have the passion for innovation, insight of customers and motivation to achieve results. Besides having an innovative and creative team, their leaders, the managers, are also a focused team of people aiming at implementing the strategy of Electrolux.
Using the VRIO framework by Barney, the value of Electrolux remains a rock since the company can exploit opportunities and neutralize its external threats like the Chinese cheaper products with the capability of producing a wide variety of quality appliances.
Regarding Rarity, Electrolux has a strong rarity hence leading to the competitive advantage of the company. The rarity has been caused by their unique and variable, valuable resources from their competitors' like the Chinese. The company produces a short supply of appliances, persisting over time, making it a standstill in the market. The objectives and their ultimate strategies of the company are also transparent throughout the company, giving it the rarity it has at recent.
Considering the imitability factor, the Electrolux Company has its unique products with production of new features approximately in every year, giving it a competitive advantage. With this, the company cannot be imitated by similar product-producing companies competing with it. Imitability, hence, makes it difficult for other firms and companies to access the resources in the Electrolux Company and imitate their unique and innovative strategy. Their strategy gives the company a long-term competitive advantage, which ensures the success of the company (Hill, 1998). Inimitability and valuable and rare resources hence sustain the company's competitive advantage
The organization also has a strategic way in which they exploit their valuable and rare resources. Their exploitation makes sure they enjoy a period of sustained competitive advantage. The company's reporting and budgeting keep the top management informed of decisions made by employees. The culture of the organization enables each employee to be a keeper of their fellow employees. The company also compensates their employees by giving them bonuses, stocks, and salary increments. They also, besides doing it the monetary way, expand their offices and increase their vacation days. This correct organization encourages the company to sustain their competitive market advantage since, without the correct organization, valuable, rare and costly resources, a company's competition becomes a great challenge (Barney, 2011).
AB Electrolux can, therefore, compete effectively with the Chinese consumer manufacturers. What makes the company a valid, positive competitor is its strong VRIO framework, which, when integrated with the unique products they produce, gives it the strength and encouragement to compete in the wide market. Although its products are small and few in the market, they will still stand to be quality, which the Chinese manufacturers cannot get through. Chinese manufacturers are also not innovative and produce constant similar products, giving them the competitive disadvantage against the Electrolux's products.
AB Electrolux operates in a consolidated industry since it operates a large market share of all its household appliances, stretching to the whole world. The market in which Electrolux operates also has a high barrier to entry, diverse products, where they come up with innovative ideas every time, well-established brands and hence acquiring high-profit margins. Their competitive advantage encourages the company to have this kind of industry. If the company had no unique products and innovative minds in the team of workers they have in their company, they would be operating in a fragmented market. Although they have offices stretching over the world, their products remain the same, the reason they operate in a consolidated market.