Strategic Analysis: Electrolux Student’s name Institutional Affiliation Strategic Analysis: Electrolux Introduction Since the 19th century the world has witnessed an increase in the number of individuals in the middle-class category. The Industrial Revolution contributed significantly to this norm together with the ever fluctuating economic performance in respective countries which has forced people to consider better and diverse ways of earning a living. Businesses have learned to embrace this norm and use it to their advantage based on the fact that the middle-class growth is likely to happen in many emerging markets around the world especially those in Asia. With this constant trend homeownership rates will also increase and create more demand for consumer durable. It has been forecasted that by 2030 the number of people in the middle-class category will rise and this presents an opportunity to devise strategies that can foster growth and development for a firm. Electrolux generic strategies were analyzed and it was clear that Electrolux can benefit from cost leadership as it can set the pace in the industry. Corporate culture is another essential thing that defines the existence of this organization. Electrolux has focused its attention on sustainability and employee development strategies that continue to improve its reputation and integrity. References Barney J. B. & Hesterly W. S. (2012). Strategic management and competitive advantage: Concepts. Englewood Cliffs NJ: Pearson. Bordean O. N. Borza A. I. Nistor R. L. & Mitra C. S. (2010). The Use of Michael Porter’s Generic Strategies in the Romanian Hotel Industry. International Journal of Trade Economics and Finance 1(2) 173-178. doi:10.7763/ijtef.2010.v1.31 Electrolux. (2018). Governance structure | Electrolux Group. Retrieved January 21 2018 from www.electroluxgroup.com Faulkner D. & Campbell A. (2006). The Oxford handbook of strategy: A strategy overview and competitive strategy. Oxford: Oxford University Press. Moss G. L. & Shaw-McMinn P. G. (2001). Formulating Your Marketing and Business Strategy. Eyecare Business 193-222. doi:10.1016/b978-0-7506-7238-2.50012-x [...]
Use the strategic analysis as a method of organizing and evaluating case information Scenario: Review the corporate strategy of AB Electrolux: found here: group.electrolux.com As the social and demographic trends continue to evolve so do the opportunities afforded to Electrolux. The most significant demographic shift globally is the growing middle class in Asia, which includes families with incomes between US$6,000 and US$30,000. It is estimated that by 2030 there will be 3 billion more people in the global middle class than there were in 2013.(Ernst & Young, 2013) Correlated with rising incomes worldwide, homeownership has also increased at a substantial rate giving rise to increased demand for consumer durables such as refrigerators, washing machines, and dishwashers. (Electrolux, 2013) Electrolux (2013) Electrolux 2013 Annual Report. Retrieved from group.electrolux.com Ernst & Young (2013) Hitting the sweet spot. Retrieved from www.ey.com Instructions: In a more comprehensive essay consisting of 2400 – 2800 words, discuss the following: 1) Use Barney’s VRIO framework to analyze the competencies of Electrolux. Discuss whether AB Electrolux can compete with local Chinese consumer manufacturers. 2) Discuss three leading perspectives on strategy, and how they might influence Electrolux. 3) Identify Porter’s four generic strategies. Discuss which of these would work best for Electrolux. 4) What is the corporate culture of Electrolux? Discuss two distinct attributes of culture within the organization. This essay should be well-researched, appropriately documented and submitted in APA format. Unoriginal Content: Your essay may contain no more than 10% quotes from other sources.