Strategy risks

Profitable growth

To outperform the market and enhance profitability, Electrolux needs to successfully execute initiatives to drive profitable growth. Maintaining a strong position in key core markets in combination with targeted growth in new segments and markets are crucial. The ability to optimize the product portfolio to the most profitable categories is also important. Not being able to do this in a timely manner may affect the ability to grow profitably and bring value to the customers.

Consumer innovation

Electrolux invests in innovations to create best-in-class consumer benefits. Efforts to provide consumers with the best possible experiences are central to the Group’s business model. Hence, the Group must ensure it continues to invest in key areas such as innovation, strengthening the core brands and improving quality in order to develop best-in-class products and solutions for the customers.

Operational excellence

Electrolux ensures a competitive cost structure by focusing on continuous efficiency improvements in its operations. Improving the cost base through lower product costs as well as fixed costs is important to maintain competitiveness in the long term. If projects to optimize operations can not be executed according to plan, reaching the expected cost efficiencies across the Group’s business areas may be affected and be at risk. 

Talent and teamship

Dedicated employees and leaders with the right skills play a crucial role in Electrolux achieving its vision and targets. It is a prerequisite for the organization to attract and maintain competences and employees through its way of working or through well-functioning teams. Being a global company, the Group must continue to ensure and nurture a collaborative culture with the organization to support the continued execution and growth of its global businesses.

The Group strategy is affected by both external and internal factors. Electrolux continuously revises its strategic framework to ensure it is up to date. To be able to achieve its vision and targets, the Group needs to assure it can manage potential execution risks related to its strategic initiatives.