Strategic direction

Strategic direction

Through profitable growth, innovative products, operational excellence and dedicated employees, Electrolux creates the conditions to reach its vision to become the best appliance company in the world.

Profitable growth

To outperform market growth and enhance profitability, focus is placed on increasing sales share in growth regions, strengthening the position in core markets and in the global premium segment, expanding in profitable high-growth product categories, developing service and after-market operations and reducing complexity and costs in manufacturing. Despite intense competition, Electrolux captured market share in Latin America and several key product segments in North America, Europe and Asia in 2013.

Electrolux Strategy

Innovation

The Electrolux process for consumer-driven product development increases the speed in getting products to market and, in parallel, the number of products that are preferred by more consumers. Collaboration between marketing, R&D and design is a key factor, as is the transfer of knowledge from the Group’s professional business to consumer products.

Over a number of years, Electrolux has gradually increased its investment into R&D. Sustainability is a core element of the Group’s strategy and sustainable innovation is a prioritized area 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 operations are streamlined to increase productivity. Around 65% of the Group’s core appliances are currently manufactured in low-cost areas. Floorcare products, microwave ovens and small domestic appliances are largely sourced from low-cost areas. Global optimization of production and modularization releases resources for investment in product development, design and marketing. In addition, Electrolux implements programs to reduce overhead costs and capitalize on the Group’s global strength and scope.

People and leadership

An innovative corporate culture with dedicated employees from diverse backgrounds provides the right foundation to develop successful products for consumers across the globe. At the same time, it is important to contribute to sustainable development for current and future generations in a world that is evolving at an increasingly rapid pace. Employee passion for innovation, consumer insight and motivation to achieve results are what sets Electrolux apart. In addition, committed and talented managers play a decisive role in the successful implementation of the Electrolux strategy.

Read more about Electrolux Strategy

To outperform market growth and simultaneously enhance profitability, the Group is implementing a number of strategic initiatives.

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The Electrolux process for consumer-driven product development ensures that innovative products that will be preferred by more consumers.

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Since 2004, the Group has been gradually restructuring its production through a thoroughly planned manufacturing footprint project that is planned to be finalized by 2016.

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Dedicated employees with diverse backgrounds play a crucial role in creating the innovative corporate culture necessary for Electrolux to be successful.. The Electrolux leadership model acknowledges that the path toward success begins with people.

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