Electrolux Part Case Study
CASE EXAMPLE
Electrolux
History
This was just the latest shift in strategy at Electrolux whose impressive growth and development started under the leadership of Alex Wenner-Gren in 1920s
Sweden. The early growth was built around an expertise in industrial design creating the leading products in refrigeration and vacuum cleaning. By the mid-1930s the company had also established production outside
Sweden in Germany, UK, France, USA and Australia.
The period following the Second World War saw a major growth in demand for domestic appliances and
Electrolux expanded its range into washing machines and dishwashers. In 1967 Hans Werthén took over as president and embarked on a series of acquisitions that restructured the industry in Europe: 59 acquisitions were made in the 1970s alone followed by major acquisitions
Photo: Electrolux
By 2005 Sweden’s Electrolux was the world’s largest producer of domestic and professional appliances for the kitchen, cleaning and outdoor use. Its products included cookers, vacuum cleaners, washing machines, fridges, lawn mowers, chain saws and also tools for the construction and stone industries. It employed about
70,000 people and sold about 40 million products annually in about 150 countries. Its annual sales in 2005 were 129 billion Swedish krona (~A14bn; ~£10bn) and profits about 3.9bn krona (~A420m). But 2005 saw two changes that would push the company into second place in the industry – behind the US company
Whirlpool. First, Whirlpool completed its acquisition of
Maytag – which gave it about 47 per cent market share in the USA and global sales of some $US19bn (~A15bn).
Second, Electrolux announced that it was to demerge its outdoor products division (mowers, chain saws, etc.) as
Husqvarna. This left Electrolux to focus on the indoor products for both the home and professional cooking and cleaning organisations. So the ‘new Electrolux’ would have 57,000 employees and global sales of some
Electrolux
History
This was just the latest shift in strategy at Electrolux whose impressive growth and development started under the leadership of Alex Wenner-Gren in 1920s
Sweden. The early growth was built around an expertise in industrial design creating the leading products in refrigeration and vacuum cleaning. By the mid-1930s the company had also established production outside
Sweden in Germany, UK, France, USA and Australia.
The period following the Second World War saw a major growth in demand for domestic appliances and
Electrolux expanded its range into washing machines and dishwashers. In 1967 Hans Werthén took over as president and embarked on a series of acquisitions that restructured the industry in Europe: 59 acquisitions were made in the 1970s alone followed by major acquisitions
Photo: Electrolux
By 2005 Sweden’s Electrolux was the world’s largest producer of domestic and professional appliances for the kitchen, cleaning and outdoor use. Its products included cookers, vacuum cleaners, washing machines, fridges, lawn mowers, chain saws and also tools for the construction and stone industries. It employed about
70,000 people and sold about 40 million products annually in about 150 countries. Its annual sales in 2005 were 129 billion Swedish krona (~A14bn; ~£10bn) and profits about 3.9bn krona (~A420m). But 2005 saw two changes that would push the company into second place in the industry – behind the US company
Whirlpool. First, Whirlpool completed its acquisition of
Maytag – which gave it about 47 per cent market share in the USA and global sales of some $US19bn (~A15bn).
Second, Electrolux announced that it was to demerge its outdoor products division (mowers, chain saws, etc.) as
Husqvarna. This left Electrolux to focus on the indoor products for both the home and professional cooking and cleaning organisations. So the ‘new Electrolux’ would have 57,000 employees and global sales of some