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Electrolux SWOT and PESTLE Analysis

ID : 52729253| Feb 2023| 16 pages

COMPANY PROFILE -Electrolux

Business Sector :Home Appliances

Operating Geography :Sweden, Europe, Global

About Electrolux :

Electrolux is a Swedish multinational home appliance manufacturer, headquartered in Stockholm, Sweden. It was founded in 1919 by Axel Wenner-Gren. Electrolux products include refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small domestic appliances. Its brands include Electrolux, AEG, Anova, Frigidaire, Westinghouse and Zanussi. The Electrolux Group is organized into five business areas. There are four regional consumer-focused business areas and one global business area- Europe, North America, Latin America, Asia-Pacific, Middle East and Africa. It has received the Top Employee Award 2020 in seven of its largest European markets for its exceptional employee conditions and for being an advanced employer in Europe.

Electrolux’s mission statement reads, “We reinvent taste, care and wellbeing experiences for more enjoyable and sustainable living around the world.” Electrolux’s vision statement reads, “We will be the appliance company in the world, as measured by our customers, employees and shareholders.” Electrolux’s USP or unique selling proposition lies in being the world’s second largest appliance company and selling around 60 million products in more than 150 markets every year.

Electrolux Revenue :


SEK 118,981 million – FY ended 31st December 2019 (y-o-y growth of 3%)
SEK 115,463 million – FY ended 31st December 2018

Competitive Analysis of Electrolux

SWOT
PESTLE
The SWOT analysis for Electrolux is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
1. Global leader in household appliances with a strong international presence
2. Strong focus on innovation to improve the consumer experience
3. Robust history of creating value by sustainability leadership
4. Well-positioned with consumer-focused business model giving it a competitive advantage in a changing world
5. Leading position in sustainability and resource efficient products
6. Professional expertise in cooking and laundry driving innovation
1. Low revenue share from Asia-Pacific, Middle East and Africa
2. Production issues in U.S. factory causing capacity constraints
OpportunitiesThreats
1. Investments in digitalization, automation and modularization to increase efficiency
2. Driving sustainable consumer experience by strengthening innovation platform
3. Urbanization and growing global middle class to drive growth in consumer appliances
1. Adverse impacts of trade war including steel tariffs and fuel costs inflation
3. Price competition in major markets
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Detailed SWOT Analysis of Electrolux

Strength

1. Global leader in household appliances with a strong international presence: With years of experience, Electrolux has established itself as a global leader in the household appliance industry. The Group has been successful in creating more enjoyable and sustainable living for its customers by reinventing taste, care and wellbeing components of their experiences around the world. Under the well-established brands including Electrolux, AEG and Frigidaire, Electrolux offers thoughtfully designed, innovative and sustainable solutions. Another factor that helped in this leadership position includes the strong international presence of the company spread across Europe, North America, Latin America and Asia-Pacific, Middle East and Africa. Electrolux holds market shares of 38% and 33% in Europe and North America respectively.

2. Strong focus on innovation to improve the consumer experience: Electrolux, one of the global leaders in the appliance industry, continuously strives to improve the customer experience by reinventing taste, care and well-being. Focussing on these three clear areas of innovation, the company develops new functionalities and drives the demand by promoting user- friendliness and resource efficiency. These three areas, taste, care and well-being represent 61%, 29% and 10% of the total shares of sales. In the “taste” focus area, Electrolux launched the multidoor refrigerator global platform in the Americas, and steam ovens with the Steamify function, to enable the best baking, roasting and steaming results. Product launches in the care and well-being segments include the connected AEG 9000 Premium Edition Washer Dryer with SensiDry Technology and the PureSense system respectively.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threats

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Whirlpool
  • LG Electronics
  • Haier
  • Samsung
  • BSH
  • Miele
  • Arcelik
  • Panasonic
  • Philips
  • Bosch
  • Sony
  • HHGregg

Major Brands :

  • AEG
  • Electrolux
  • Eureka
  • Frigidaire
  • ElectroluxGrand Cuisine
  • Molteni
  • Westinghouse
  • Zanussi
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References used in Electrolux SWOT & PESTLE Analysis Report

1. Electrolux Annual Report 2019 - https://www.electroluxgroup.com/en/wp-content/uploads/sites/2/2020/02/electrolux-electrolux-publishes-2019-annual-report-200220.pdf
2. Electrolux Share Plunge Due To Production Problems, Retailers Cancel Orders - https://www.channelnews.com.au/electrolux-share-plunge-due-to-production-problems-retailers-cancel-orders/
3. Electrolux shares slide as costs of US factory overhaul rise - https://www.ft.com/content/e1d4af68-1fe9-11ea-b8a1-584213ee7b2b
4. Trump Trade War -Electrolux sees steel tariffs sucking profit - https://steelguru.com/steel/trump-trade-war-electrolux-sees-steel-tariffs-sucking-profit/515365
5. 5. The Power of the Growing Global Middle Class (Part 2) - https://www.motionpoint.com/blog/the-power-of-the-growing-global-middle-class-part-2/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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In-text: (SWOT & PESTLE.com, 2024)

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