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Annual Report 2014 Strategy Growth Market overview Innovation Brand & design Sustainability Operations People Values

Strategy

The Electrolux strategy remains consistent. Through profitable growth, innovative products, strong brands, operational excellence and dedicated employees, the Group will achieve its vision to be the best appliance company in the world.

Profitable
growth

Innovation

Products and services
Brand and design
Sustainability

Operational
excellence

People and leadership

 

Profitable growth

To outperform market growth and enhance profitability, the focus is on increasing the share of sales in emerging markets and strengthening the position in the Group’s core markets. Acquisitions are an integrated part of the growth strategy. Focus is on the global premium segment, expanding in profitable high-growth product categories, developing service and aftermarket operations and reducing complexity and costs in manufacturing. 

Innovation

A key factor in the Electrolux consumer-oriented product-­development process is the close collaboration between marketing, R&D and design, as is the transfer of know-how from the professional business to consumer products. 

Over a number of years, the Group has progressively increased investment in R&D. Sustainability is a core element of the strategy, and sustainable innovation is one of the Group’s four prioritized areas for product development. At least one-third of the product-development spend is related to sustainability. 

Operational excellence

The Group’s manufacturing footprint is continuously adapted and the operations are streamlined to increase productivity. About 70% of the Group’s household appliances are currently manufactured in low-cost areas. Vacuum cleaners, microwave ovens and small domestic appliances are mainly produced in low-cost areas. 

Global optimization of production and modularization unlocks resources for investment in product development, design and marketing. 

People and leadership

An innovative corporate culture with dedicated employees from diverse backgrounds provides Electrolux with the right foundation to develop successful products for consumers across the globe. It is important to contribute to sustainable development for current and future generations in a rapidly evolving world. Strong, committed managers play a decisive role in the successful execution of the strategy.

Macro drivers

Electrolux competitive advantages

New economies

Changing lifestages

Neo urbanization

Glocal presence

Consumer insight

Design

Professional legacy

Climate change

Constrained resources

Breaktrough technologies

Scandinavian heritage

Wide product range

People and culture

Sustainability leadership

The global market for household appliances is changing in pace with the emergence of an affluent middle class, which is happening in parallel with increasing awareness of climate change and limited natural resources. Strength factors, such as a global presence, consumer insight, a wide product range and sustainability leadership, enable Electrolux to offer new solutions that meet the consumer requirements of today and tomorrow.

 

 

 

 

 

 

 

 

Customer value is based on the products and the services that Electrolux provides. 

Electrolux develops solutions that facilitate the everyday lives of consumers.

Innovative products, closely based on the Group’s professional expertise, are launched at an increasing pace across the globe.