GLOBAL MARKETING STRATEGIES

Global Marketing Strategies of Electrolux



Global Marketing Strategies of Electrolux

Overview of the Environment

Globalization is the key to gain a competitive advantage in the expanding and rapidly growing economies. It enables an organization to achieve economies of scale through integrated technology and free trade across borders. The flow of communication makes it to be easier for companies to share vital information with organizations across the globe. Transportation of goods, as well as cost of production goes down as organizations setup their plants in the new market rather than exporting goods to other parts of the world.

Company History

Electrolux AB is the leading home appliance company operates in more than 150 countries worldwide. The company involved in producing variety of household appliances includes washing machines, ovens, refrigerators, dishwashers, chain saws, vacuum cleaners and lawn mowers. It also provides laundry equipments and specialized food service to restaurants, Laundromats and hotels.

In 1901, Elektromekaniska AB was established by Axel Wenner-Gren for the purpose of manufacturing vacuum cleaner in Stockholm Sweden. Association between Lux and Axel Wenner-Gren started in 1912. They jointly introduced first vacuum cleaner, Lux 1 at Lilla Essingten. Wenner-Gren became the manager of Lux in France, United Kingdom and Germany. The method of door to door sales and promotions were adopted to create sales. Later in 1915, Wenner-Gren established a sales company Avenska Elecktron as a result of successful sales method used in the beginning. After the successful sales, Wenner-Gren (Elektron) bought all the shares of Elektromekaniska and was selected as the board of the company in 1917.

In the year 1918, Lux took over the operations of Svenska Elektron and Elektron bought 49% shares of AB Lux and later in 1919, the merger of AB Lux and Elektron took place and the agreement between the two companies entails that Lux is the sole manufacturer of Vacuum Cleaner and Elektron is to buy the product from Lux. The name changed to AB Electrolux and in 1957, it became known as Electrolux. During 1996 and 1997, the company diversified into three different sectors: commercial appliances, outdoor products and home appliances and started operating globally (http://www.fundinguniverse.com, 2012)

Marketing Information System

Marketing Information System is widely practiced in many organizations. The purpose of the system is to support marketing related decision making. According to Kotler:

“A marketing information system is a continuing and interacting structure of people, equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control"

Marketing information system helps company obtain information to make particular decisions on daily basis by using data base or marketing intelligence system. It also helps in creating competitive advantage it the system is strong and effective (Bhasin, 2010). The competitive advantage of Electrolux is that it offers large variety of products to kitchen and laundries. High productivity, maximum utilization of resources and a widespread service network are its competitive advantage. It operates globally; selling 40 million products in 150 countries and its ...