Analyse the strategy of The Electrolux Group
...he Chinese market in 1990s, it has merged with several factories such as Changsha Zhongyi fridge factory, Nanjing Bole fridge factory & Hangzhou dongbao air-condition co., etc. • Business-level strategy :cost leadership strategy -------A business-level strategy in which the organization is the lowest-cost producer in its industry. Wang Xiaoming---the CEO of Electrolux China decided to cut the products’ purchase price to lower its market price. Why adopt this type of strategy? • Growth strategy achieved by horizontal integration The company expands by this strategy and might decrease the amount of competition in an industry. • Cost leadership strategy To have a competitive advantage in price Is that strategy working for the company? ---No • Expansion When Electrolux expanded into the market of washing machines and air conditions in 2001, there was already a fierce competition. The market share of 4 major native brands: Haier, Rongsheng, Meiling & Xinfei was 71.9%. So it was never listed as top 10 in the sales rank. More serious was that because its profit decreased every year, it invested less and less money in media publicity, thus it became less well-known to and their fidelity decreased. • Low-cost In order to have a competitive advantage in price, Electrolux has to cut the products’ purcha...