Answer to Question #198468 in Marketing for Roy

Question

Questions:

1. Evaluate Electrolux’s strategy in light of its vision and the global trends in the household appliance industry.

Answer 1

What benefits will Electrolux receive from the acquisition of GE Appliances?

The acquisition of GE appliances will ensure that Electrolux has control over the kitchen and laundry merchandises. The aforementioned will be possible because 90% of the transactions will be under Electrolux and managing the company’s logistics and distribution network in North America. Additionally, 48% shareholdings will be linked to the Mexican Appliance organization. The acquisition will offer Electrolux more monetary power and more international business (Sinatra, Singh & Krogh, 2016).  

How does it fit in with the strategic direction of the group?

It fits in the direction of the group in connection to being well-known, their high-tech progression and an increase in international reach (Sinatra et al., 2016).  

What other strategic options can Electrolux pursue for future growth to achieve greater global dominance?

The other strategic option Electrolux can pursue is targeting upcoming markets like India and creating more awareness towards the company (Sinatra et al., 2016).   

Reference

Sinatra, A., Singh, H., & Krogh, G. (2016). The Management of Corporate Acquisitions:  International Perspectives, Springer.