AB Electrolux Can Compete With Local Chinese Consumer Manufacturers? (Essay Sample)

AB Electrolux
Agustin a. Molinanavarro
American Military University 
Abstract
AB Electrolux is the domestic company in Sweden and it operates within the appliance industry. This company has been around since the early 1919 and has been through major government regulation and companies coming together. However, this company has continued to adapt within the appliance industry and now is serving domestic, and globally. According to AB Electrolux 2014 report, in 2014, AB Electrolux sold more than 60 million products annually and employed over 55,400 employees. Also, “Electrolux boasts a global reach, as its products are sold in more than 150 markets” (AB Electrolux, 2018).AB Electrolux is the second largest global maker of appliances right behind whirlpool. AB Electrolux has one of the most comprehensive business strategies domestic and globally. One of the reasons AB Electrolux has been successful over the years; it is because of their innovative strategies to provide high-quality products at low cost to their customers.
AB Electrolux can compete with local Chinese consumer manufacturers?
AB Electrolux has been in business for a very long time and there have been many competitors who have come and left business. This firm has been able to be successful due to their aggressive business strategies such as high-quality, low-cost products and having partners within this industry.“The firm, a top maker of household appliances worldwide, operates through three main segments: Major Appliances, which is divided into four geographic regions; and Small Appliances and Professional Products, which operate globally” (AB Electrolux, 2018).
Discuss the three leading perspectives on strategy, and how this strategy tripod influences Electrolux.
Evaluating the leading perspectives is very important for the company competences. Barney creates VRIO analysis that helps in making sure that internal resources of the organization are a good analysis. Internal resources of the Electrolux are one of the three perspectives. The VRIO poses some questions regarding how the company is valuable, the pass of the other competitors and the cost that is initiated in the company (AB Electrolux, 2018). The firm strategy tripod influences the company by exploiting the resources. This helps in determining the success or the fail of the company. The Electrolux is focused on the analysis of the china global market. In a comparison of the VIRIO framework, the company will be able to compete for the local manufacturers in China. Another strategy for customers in the company since it is a cherished company by many of the customers following its high level of performance and production of the quality services. The customers are well valued by the company by providing them with better products every day without any form of the delay.
Porter’s four generic strategies
The Porter’s fours generic strategies have provided grounds for companies to maximize their profitability and have enabled firms to understand how to go about it managing their business. “Since the publication of this model in 1980, Porter has confirmed his belief that firms should pursue one of his recommended strategies in order to succeed” (Ormanidhi & Stringa, 2008). Cost leadership, differentiation strategy, focus strategy differentiation and focus strategy low-cost are the four Porter’s genetic strategies. In cost leadership, “Porter’s generic strategy of cost leadership focuses on gaining competitive advantage by having the lowest costs and cost structure in the industry” (Allen, Helms, Jones, Takeda & White, 2008) In the supply and demand world, it does pays off to have the lowest cost of supplier and providing a low-cost product to their customer. In the case of AB Electrolux, they are able to have suppliers deliver a high-quality product at a low-cost which enables them to provide an affordable product to their customers.
Best generic strategy for Electrolux
Analyzing the various generic strategies, cost leadership seems the most appropriate strategy for Electrolux Company to pursue. Firstly, the company commands a large market share compared to its competitors. The company’s huge resources and drive for innovation allow the company to make products at a relatively cheaper cost; consequently, the company can sell its products and services at reduced prices and still make profits (Electrolux, 2011). Creation of the key collaboration of them with other companies for the resources enables the company to be among the profit competing ones. The company gives the application of the Barney’s VIRIO framework as well as the porter’s strategies for the purpose of the innovation. It, therefore, creates a mindset that is relevant for the rival of the consumers in China who get the same materials manufactured.
What is the corporate culture of Electrolux? Discuss two distinct attributes of culture within the organization.
The ideology culture in the Electrolux is the main support of the company demand an understanding of the consumers. The company has a belief that enthusiasm in employees and the outstanding leaders within the company. This is directed toward the maximization of the company production and future concepts. Electrolux carries its operation around the globe and therefore it believes in the culture of high moral standards and principles of operation. There are two attributes of the culture within the organization (Ormanidhi & Stringa, 2008). First, it contributes to the competition with the Chinese consumers and second competes with the manufacturers of the same product all over the world. The culture initiation of the completion has helped the company have an improvement for its product quality across North America, Asia, and Europe. The attributes have helped Electrolux improve its uniqueness and the procedure of running. There is much of the important value for the corporate culture which involves people from different backgrounds. The corporate culture of the company is just from the way it operates from the early years. It has a culture of set goals achieve and that is why it has been able to reach more than 150 countries across the world
Conclusion
The profitable and productivity of the organization like Electrolux makes use of any tool for the support of its performance. The compa...