Answer to Question #221194 in Marketing for Ramish khan

Question

2. What benefits will Electrolux receive from the acquisition of GE Appliances? How does it fit in with the strategic direction of the group? What other strategic options can Electrolux pursue for future growth to achieve greater global dominance?

Answer 1

Electrolux

Electrolux will gain from the acquisition of general appliances because Electrolux will manufacture the majority of kitchen and laundry equipment. Again, this will result in a significant profit for this firm. Finally, it will have a greater number of multinational enterprises.

Electrolux contributes to the group's strategic orientation by making technological breakthroughs, establishing a defined objective for the firm, increasing production and supply of goods, and, finally, improving operational and marketing efficiency.

Several options can be pursued for future growth to achieve greater global dominance, such as learning about their customers' preferences and working to meet them, targeting emerging markets and densely populated areas such as India, being aware of prices to avoid overcharging, and finally, creating brand awareness through constant advertising.