Strategic risks and opportunities
The Electrolux strategy is closely linked to the external world and to internal factors that may affect the Group's execution of its strategy. The Electrolux board and the business area boards continuously revise their strategic framework to ensure they are up to date and the business divisions are focused on creating economic value. The Group's operational units manage potential execution risks related to strategic priorities.
To achieve profitable growth, Electrolux applies a three-step model for all its business areas. The Group needs to successfully execute key priorities throughout its operations such as: portfolio management, cost efficiency, improved product quality and teamship at all levels. The ability to invest in growth and innovation in the next stages of the business model, including new markets and segments, is therefore essential. Not being able to execute on the strategic priorities in a timely manner may affect the Group’s ability to grow profitably and deliver outstanding 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. The Group must therefore 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 consumers to choose Electrolux products and is a key priority for the Group. Electrolux has initiated a 'Committed to Quality' program to reinforce a quality focus throughout 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 are: Digital 360 Consumer Experience, Connected Experiences, Digital Productivity, Modularization & Digital Manufacturing and Digital Supply Chain. The ability to execute the digital transformation within its operations is crucial for the Group to adapt to a rapidly changing industry and consumer needs.
Sustainability leadership is crucial to realizing the Group's strategy for profitable growth and is therefore an integral part of the Electrolux business model. The objective is to steadily improve at meeting people’s needs and enhancing their daily lives in a sustainable manner. Electrolux has long recognized its impacts on the environment and society. The company 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 Report 2019 in the Annual Report.