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Annual Report 2016 Global trends Business model Innovation Operations Talent and teamship Our Values Sustainability History

Business model for profitable growth

To achieve profitable growth, Electrolux uses a business model which focuses on creating best-in-class consumer experiences.

Best-in-class consumer experiences

The Electrolux business model focuses on creating best-in-class consumer experiences. Work in the Group targets three crucial areas: relevant experience-based innovation, optimization of the product portfolio and quality. At the same time, a number of of transformation drivers are ­crucial to achieve these goals. Possibly the most significant of these is the digital transformation, with great potential both to enable best-in-class consumer experiences and drive results through operational excellence. In addition to this, continuous improvements will be implemented to increase the effectiveness of Electrolux operations and processes. These efforts will all be carried out in a sustainable way, an area which is becoming more and more important for the Group to retain its competitive advantage in the market.

Experience-based innovation

Focus is to invest in innovations that are most relevant for creating the best consumer experience to make great ­tasting food, the best care for clothes and to increase well-being in the home. A key factor is the transfer of know-how from the Group’s professional business operations to consumer products. Over a number of years, the Group has progressively increased investment in R&D.

Targeted growth and optimization of the product portfolio to the most profitable product categories and products with distinct consumer benefits, will strengthen the presence of Electrolux in the product categories and channels where the Group is most competitive.

Efforts to provide consumers with the best possible owner experience are central to the process. Quality is a prerequisite for best-in-class consumer experience and long-term consumer brand loyalty. The Group has long-term goals to continue to enhance quality. 

In 2016 Electrolux initiated a “Committed to Quality” program to reinforce the quality focus across Electrolux operations around the world. Quality is a prerequisite for best-in-class ­consumer experience and long­-­term consumer brand loyalty.

Electrolux myPRO professional washing machine for small businesses.

Best customer experience and Star Products

Electrolux continues to increase its focus on its Star Products for targeted profitable growth. Electrolux Star Products include the most relevant innovations for making great tasting food, the best care for clothes and increased well-being in the home.



Profitable growth



Talent and teamship


To broaden the product offering and create a strong platform for growth acquisitions are an integrated part of Electrolux growth strategy. In 2016, Electrolux made two acquisitions. Vintec, an Australia and Singapore-based company which supplies a wide range of climate-controlled
wine cabinets throughout the Asia Pacific region was acquired. An agreement was also made to acquire South Africa’s leading water-heater producer Kwikot Group. 

Operational excellence

Electrolux ensures a competitive cost structure by focusing on continuous efficiency improvements in variable product costs as well as fixed costs. Striving to minimize complexity and make work practices simpler is the foundation of a stable and focused organization. An extensive modularization program is ongoing that lowers product costs and the product development spend through digitalization and standardized global modular platforms for new products.

Talent and teamship

Outstanding teams and the best talents play a crucial role in Electrolux achieving the Group’s vision and targets. Teamship is the Electrolux way of working to build high-performing teams that create continuous improvements and foster learning in a large, global and multicultural company.


Digitalization affects major areas of Electrolux operations and includes several measures and projects in five core areas: connected appliances, productivity, supply chain, modularization/manufacturing and consumers’ experience of purchasing and using products. Overall, digitalization enables substantial opportunities for streamlining operations and continuous interaction with consumers. 

Continuous improvement

Continuous improvements mean delivering higher customer value at a lower price. Electrolux works continuously to improve cost structures, and develops methods, processes, skills and the company culture to achieve this. 


Sustainability leadership is crucial to realizing the Electrolux strategy. The objective is to continuously improve at meeting people’s needs and enhancing their daily lives in a ­sustainable way. The Group’s sustainability priorities target nine main areas that combined contribute to: Better solutions, Better operations and Better society. Read more on page 36.



Source: Electrolux estimates
*Estimated annual sales of connected appliances world-wide 2020.