Strategy risks and opportunities
Electrolux strategy is closely linked to the external world and to internal factors which may affect the Group’s execution of its strategy. The Electrolux board and the business area boards continuously revise the strategic framework to ensure it is up to date and its business divisions are focused to create economic value. The Group’s operational units manage potential execution risk related to the strategic priorities.
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, improved product quality and teamship across all levels. The ability to invest in growth and innovation in the next stages of the business model, including new markets and segments, is hence crucial. Not being able to execute on the strategic priorities in a timely manner may affect the Group’s ability to grow profitably and deliver the best consumer experiences.
Outstanding consumer experiences
Electrolux invests in innovation to create outstanding 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, hence, the Group must ensure that it invests in key areas such as product innovation, R&D, connectivity, service and quality in order to deliver outstanding consumer innovations. 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 outstanding 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.
Sustainability leadership is crucial to realizing the Electrolux strategy for profitable growth and is therefore an integral part of the Group’s business model. 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 and has made significant progress on sustainability and is acknowledged as a sustainability leader. Opportunities, key risks and how they are managed are described in the Sustainability reporting 2018 in the Annual Report.