During 2011, Electrolux implemented a number of activities to offset the effects of weaker demand in mature markets, price pressure and higher raw-material costs, but the main reason for these was to create a platform for continued competitive operations and profitable growth.
- Price hikes announced in North America and Europe.
- Acquisition of the Olympic Group and CTI, thus increasing pro forma sales for Electrolux in growth markets to 35% of total sales.
- Increased production and procurement in low-cost areas.
- Greater synergies and modularization through utilization of global economies of scale.
- Coordination of marketing, design and R&D resources through the “innovation triangle”.
- Launch completed of an extensive customer-care program to develop the market’s best service.
- Initiation of even closer collaboration between the Group’s operations in consumer durables and professional products.
- Implementation of a faster product-development process.
- Reduction of staffing levels to reduce overhead costs by the end of the year.
- Initiated actions to improve manufacturing capacity utilization by optimizing manufacturing footprint.
- New innovative products launched in key markets.
- Focus placed on a wider range of small domestic appliances in all regions.
- Stringent consumer tests introduced prior to launches of new products.
- Reduced procurement costs and increased productivity.
- Reduction in tied-up working capital.
The Innovation Triangle
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