Path to profitable growth
To achieve sustainable profitable growth Electrolux applies a three-step model for all business areas. It starts with making sure that the business operates with stability and predictability in all key processes in combination with clear focus based on active choices to increase profitability.
The second step is about delivering this with sustainable profitability, meaning that the focused business model has resilience to external factors and clear competitive advantages that enable profitability over time.
Finally, when reaching the third step the business area can accelerate growth in a targeted way by leveraging its strength through selective investments with a clear return.
1 Stability & Focus
In 2017, the Electrolux Group completed the second stage, Sustainable Profitability, on its path to profitable growth and in 2018 moved towards Targeted Growth. Three business areas are currently in this stage focusing on growing their business in a targeted way with a continued strong focus on profitability. Key activities in 2018 across the Group’s operations and business areas have been to continue drive:
- Portfolio management targeting the most profitable product categories and products.
- Focused and innovative product portfolio with strong consumer benefits.
- An efficient and flexible cost structure fuelled by re-engineering investments.
- Well-established brands in line with consumer trends.
- Teamship across all functions and levels.
For more information on the path forward and business model execution by business area, see the Business area section.