Republic of the Philippines
BICOL UNIVERSITY
COLLEGE OF BUSINESS, ECONOMICS, AND MANAGEMENT
Daraga, Albay
MARKETING MANAGEMENT
LAZARO, Jonela B. BSBA - Marketing Management II March 4, 2021
ELECTROLUX
1. Evaluate Electrolux’s strategy in light of its vision and the global trends in the household
appliance industry.
Answer:
According to the text, Electrolux was the world's leading manufacturer of domestic and
professional appliances for kitchen, cleaning, and outdoor. Its vision is to become the best
appliance company in the world as measured by it customers, employees, and shareholders. It
bases its strategy om four pillars which consists innovative products, operational excellence,
profitable growth, and dedicated employees.
To succeed effectively and accomplish corporate goals, the company's strategy consists of a
mixture of competitive movements and market methods. Profitability, efficiency, development,
technical savvy, prosperity, independence, survival, sustainability, customer service, ability to
pay, product quality, diversification, employee loyalty and well-being are among the company's
aims. It is management's game plan for extending the business, retaining and fulfilling clients,
operating operations, meeting financial and market success targets, and being market
competitive.
The “innovative triangle” at Electrolux encourages close cooperation between its marketing,
R&D and functions design to reach the market based on solid consumer insights. It helps to
differentiate design for develop global modularized platforms. These platforms make it easy to
spread a successful launch from one market to another adaptions to local preferences, deliver
great customer value. Electrolux has restricted production across division globally which is 65%
mainly in Western Europe and North America to low-cost regions for increasing operational
efficiency.
Electrolux continues innovates to enhance current products and ranges to penetrate existing
markets for pursuing strategy of profitable growth. Electrolux tapped the potential of the
Chinese market by launching full range of kitchen and laundry appliances more than 60
products designed exclusively for China.
Electrolux sells more than 50 million products in 150 countries. The core markets for Eectrolux
are Western Europe, North America, and China contributing 35% to its sales. In 2013, it was
among the top five global players in the household appliances industry. The major drives of this
industry are increased per capita income, changing lifestyles, consumer spending, housing
activities, and urbanization. Economic growth in emerging markets is expected to boost the
industry. The main competitive advantages of Electrolux are global presence, consumer insight,
design professional legacy, wide product range, people and culture, and sustainability
leadership.
2. What benefits will Electrolux receive from the acquisition of GE Appliances? How does it fit
in with the strategic options can Electrolux pursue for future growth to achieve greater global
dominance?
Answer:
Electrolux will gain leverage of the kitchen and laundry products from General Electric's
appliance market as a result of their purchase of GE Appliances. It will be one of North
America's largest suppliers of kitchen and laundry supplies, with over 90% of sales coming from
its own distribution and logistics network. It will also receive a 48.4 percent stake in the
Mexican appliance business. Furthermore, the purchase of GE Appliances is expected to boost
Electroux's financial strength and expand its global business.
It will match in with Electrolux's strategic strategy by witnessing success by acquisitions, as it
has in the past. Following that, expand the product line and diversify the products. Customers
can have more options if the product list has innovative range items. GE Appliances will now
enter new markets for its products. As a result, more consumers would be familiar with the
brand and the kitchen and laundry items available on the market. Furthermore, under the GE
Appliances brand, the company will expand its global presence and operating performance. The
Eectrolux will be used to pave a path to the vision or target that the organization wishes to
accomplish. By progressing in manufacturing, GE Appliances would align with the company's
strategic goals. Advanced technology is very important nowadays, particularly in enhancing the
use and function of company goods, and it will aid in the group's strategic direction.
Electroux's strategic options for potential development to gain greater global supremacy
include focusing on emerging markets and other populous markets. The biggest growth
opportunity in the global economic order is to target emerging markets. Electrolux must be
price conscious in accordance with the country or region in which it sells. Pricing strategy is
critical, and it must be implemented depending on sale locations. The corporation must have a
robust market analysis policy in place in order to understand the consumers' needs and begin
moving against them. By implementing a robust market analysis policy, the organization would
be able to determine what the customer's real needs are. Customers should express their
thoughts on Electroux goods, and the organization can try to develop them. Electrolux may
conduct a price analysis program and make exclusive incentives to entice more buyers for
potential expansion. This is a successful business option that will pique the attention of a large
number of people in the brands. Nonetheless, Electrolux will boost its distribution platforms
and raise brand value by emphasizing product specialties in order to gain greater global
domination.
References:
Instructional Module on Marketing Management – Developing Marketing Strategies & Plan
(pages 80-81)
EMIRATES
1. How has Emirates been able to build a strong brand in the competitive airline industry
worldwide?
Answer:
Emirates' popularity can be credited to a marketing mix that places a premium on outstanding
customer experience, merchandise, and equipment. In addition, Emirates is recognised for
upholding the highest level of efficiency in all aspects of its operations, offering first-class,
business-class, and economy-class service. Emirates is one of the biggest airlines in the Middle
East, with over 3,300 weekly flights to more than 148 cities in 78 countries spanning six
continents from its hub at Dubai International Airport. It is also the world's seventh largest
airline in terms of sales, with a market capitalization of AED 83 billion, and the Middle East's
largest airline in terms of revenue, aircraft capacity, and passengers transported. Its passenger
number also increased from 44.5 million to 49.2 million over the same period. The passenger
seat factor rose 0.2 percent to 79.6%. They were able to develop a strong reputation over time
by using lean market tools, government patronage, strong employee satisfaction, high
customer loyalty, and being innovative, all of which are key factors in creating a name in the
airline industry. It has invested in the program called “Tailored Arrivals” which allows the air
traffic control to uplink to air craft new route by determining the speed and flight profile from
the air onto runway, which helps the crew to accept and fly a continuous descent profile, and
helping in saving fuel and emissions. A broad range of commercial activities is also a
justification for being able to establish a solid name in the highly competitive airline industry
around the world. We'll look at a few P's in Emirates' marketing blend and see how they've
managed to become one of the most profitable airlines in the world.
2. What are some of the apparent weaknesses with the company’s strategic direction? How
can the airline address them?
Answer:
Emirates has a strong brand in the airline industry and has carefully positioned themselves, but
they do not recognize their rivals when deciding their potential paths. Here are some of the
company's directions that are lacking: ignoring the flaws in marketing campaigns and being
overconfident in their role in the aviation industry; absence of foreign alliances due to the fact
that they are not a form of alliance; they completely disregard their rivals, such as Gulf Air
Company GSC, Air France, Lufthansa AG, British Airways, and Qatar Airways Group; They should
not investigate the advantages and disadvantages of their rivals. For instance, Etihad Airways
and a number of other airlines have signed the open skies policy and are ready to negotiate
with Emirates at a lower price while maintaining the same level of service; and they just cater to
the upper crust of society, which poses a future challenge to them because if customers will
have the same quality at a lower price, they can take advantage of it. The solutions to the
problems listed above are: enhancing the in-flight experience; they must consider completion
offerings; the roads must be expanded; and their goods must be developed in the same way as
private suits are developed; and through repositioning and actively evolving new tactics in
response to target market reaction, discount airlines will roll out packages for non-premium
class travelers. While Emirates has a good brand position, if they want to hold it in the long
run, they would need to make certain adjustments in their strategic strategy, as mentioned
above.
3. With the decline of fuel prices globally, airline companies continue to reap the benefits.
What impact will this have on Emirates’ business strategy in the future?
Answer:
The following are some of the ways that a drop in global fuel prices would impact Emirates'
market strategy: many airlines hedge a portion of their future fuel needs six to 24 months in
advance by buying jet fuel or crude oil contracts from banks or on an oil futures m to draw
cost-conscious customers; to minimize price-fluctuation impact on expected running costs,
many airlines hedge a proportion of their future fuel needs six to 24 months in advance by
buying jet fuel or crude oil contracts from banks or on an oil futures market; when oil prices are
declining, options benefit emirates because it is less expensive to hedge forwards and get
insurance if prices rise, but if one pays a premium for options, they still retain the ability to
benefit from lower oil prices more quickly; and risked slower growth in the coming years as
strong investments in new planes and premium-class services continue to erode profit margins.
References:
Instructional Module on Marketing Management – Developing Marketing Strategies & Plan
(pages 81-82)
-Thank You, Madam!-
