Strategic overview

Strategic overview

The Electrolux strategy channels profitable growth, innovative products, strong brands, operational excellence and dedicated employees to reach its vision – to be the best appliance company in the world.

Strategic overview

Profitable growth

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

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

Global optimization of production and modularization unlocks resources for investment in product development, design and marketing. An extensive modularization program is ongoing that lowers product costs and the product development spend through standardized global modular platforms for new products. The Group’s manufacturing footprint is continuously adapted and the operations are streamlined to increase productivity. About 65% of the Group’s household appliances are currently manufactured in low-cost areas.

People and leadership

An innovative 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.

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To outperform market growth and further enhance profitability, Electrolux is implementing a number of strategic initiatives.

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The Electrolux process for consumer-driven product development enables accelerated development of products that are preferred by increasing numbers of consumers. The collaboration between marketing, R&D and design is a key factor.

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Demand is increasing for products from well-known, global brands with innovative design. New, innovative consumer products are supported by strong links to the Group’s know-how in professional products.

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Electrolux is leveraging its global strength and scale to increase efficiency and reduce costs. Modularization and global optimization of production unlocks resources for investment in product development, design and marketing.

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Outstanding teams and leaders play a crucial role in Electrolux achieving the Group's vision and targets. Employees from diverse backgrounds working toward a common goal allows Electrolux to succeed in developing consumer-relevant appliances across...

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