To achieve profitable growth, Electrolux applies a three-step model for all business areas. The Group needs to successfully execute key priorities across its operations such as: portfolio management, cost efficiency, significantly improved product quality and teamship across all levels. The ability to invest in growth and innovation in the next stages of the model, including new segments and new markets, is hence crucial. Not being able to execute the priorities in a timely manner may affect the Group’s ability to leverage on opportunities, grow profitably, and deliver the best consumer experiences.
Sustainability leadership is crucial to realizing the Electrolux strategy for profitable growth. The objective is to steadily improve at meeting people’s needs and enhancing their daily lives in a sustainable way. Electrolux has long recognized the impact the company has on the environment and in society. The Group has made significant progress on sustainability in recent years and is acknowledged as a sustainability leader. Opportunities, key risks and how they are managed are described in the Sustainability reporting 2017 on page 138–146.
Electrolux invests in innovation to create best-in-class consumer experiences through an innovative product offering within Taste, Care and Wellbeing. Efforts to provide consumers outstanding products and ownership solutions are central to the Electrolux strategy and business model. The Group must ensure that it continues to invest in key areas such as product innovation, R&D, connectivity, service and improving the quality in order to deliver best-in-class innovation and solutions that engage consumers. Quality is a fundamental reason for the consumers to choose Electrolux products and a key priority for the Group. Electrolux has initiated a “Committed to Quality” program to reinforce a quality focus across Electrolux operations around the world.
The Electrolux ambition of offering best-in-class consumer experiences and to drive operational excellence is linked to five key digital transformation drivers. These comprise: Digital 360 Consumer Experience, Connected Experiences, Digital Productivity, Modularization & Digital Manufacturing and Digital Supply Chain. The ability to execute the digital transformation within operations is crucial for the Group to adapt to a rapidly changing industry and consumer needs.
