Business Model for Best-in-Class Consumer Experiences
To achieve our purpose and drive profitable growth, Electrolux uses a business model which focuses on creating Best-in-Class Consumer Experiences. This is supported by a strong foundation of Operational Excellence and Talent & Teamship, as well as three important transformational drivers.
Best-in-Class Consumer Experiences
Innovations focus on what consumers can achieve through the Group’s products and solutions. We aim to strengthen the overall experience of the Electrolux offering — before, during and after the purchase of the product. Work target three crucial areas:
Focus is to invest in innovations that are most relevant for creating the best consumer experience to make great tasting food, the best care for clothes and to increase well-being in the home. A key factor is the transfer of know-how from the Group’s professional business operations to consumer products.
Targeted growth and optimization of the product portfolio to the most profitable product categories and products with distinct consumer benefits, will strengthen the presence of Electrolux in the product categories and channels where the Group is most competitive.
Efforts to provide consumers with the best possible connected ownership experience are central to the process. Quality is a prerequisite for best-in-class consumer experience and long-term brand loyalty.
We focus on operational excellence in all parts of our value chain. Efforts to optimize operations focus on modernization, automation and adjustments to existing plants to ensure a competitive cost structure.
The foundation for this is a stable and focused organization that strives to minimize complexity and make work practices simpler to deliver products and services of superior quality and high delivery reliability.
An extensive modularization program lowers product costs and the product development spend through standardized global modular platforms for new products.
Electrolux is committed to sustainable growth and efficient use of resources comprises a key component of this. Through the Green Spirit program targets are set to continuously reduce the use of resources.
Talent & Teamship
In order to shape living for the better, we search for and develop certain core competences.
Energy talks about our drive and ability to deliver results. Openness focuses on needs and opportunities of our customers and on collaborating with others. Growth focuses on our curiosity, our ability to learn and develop ourselves and others. Agility focuses on our ability to adapt to a constantly changing reality, especially in the era of digital transformation.
We also need to make sure that all of us move in the same direction.
Teamship is our way of working. It’s about making sure we have aligned goals that allow us to make clear choices and continuously improve our execution. It’s about making sure that we know how to collaborate. It’s about transparency and a learning organization. Finally, it is about our engagement and passion about best in class consumer experiences.
Three transformation drivers are crucial to our ability to offer best-in-class consumer experiences and to achieve our purpose. Transformation drivers are areas that change and redefine who we are and how we work, and include Continuous improvement, Digital transformation and Sustainable development.
The digital transformation is changing consumer behavior, the industry and the world around us at an accelerating pace. This offers substantial opportunities for streamlining operations and continuous interaction with consumers.
The digital transformation affects all areas of Electrolux operations and includes several measures and projects in five core areas: connected appliances, productivity, supply chain, modularization/manufacturing and consumers’ experience of purchasing and using products.
Continuous improvements mean delivering higher customer value at a lower price. Electrolux works continuously to improve cost structures, and develops methods, processes, skills and the company culture to achieve this.
Our work with continuous improvement starts with stability and focus to build a reliable delivery organization. That is about making focused choices, reducing complexity, simplifying ways of working and delivering with safety, quality and reliability. The scope for continuous improvement encompasses all areas of Electrolux operations.
Sustainability leadership is crucial to realizing the Electrolux purpose, and to deliver best-in-class consumer experiences. The Group’s sustainability priorities target nine main areas that combined contribute to: Better solutions, Better operations and Better society.
- Improve product performance and efficiency
- Make better use of resources
- Eliminate harmful materials
- Ensure the best health and safety
- Achieve more with less
- Act ethically and respect human rights
- Offer solutions for healthy and sustainable living for more people
- Be a force for good
- Improve supply chain sustainability