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Case Title:

Electrolux: Reinventing Operations in North America

Publication Year : 2004

Authors: Mercy Mathew, G Srikanth

Industry: Home Appliances and Personal Care Products

Region:USA

Case Code: OPM0006

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
In 1968, Electrolux AB had sold its US manufacturing facilities and the rights to use the brand name in North America and Canada to Consolidated Foods. Since then, it had operated under a slew of other brand names like Eureka, Frigidaire, White-Westinghouse and Weed Eaters, while the well-known 'Electrolux' vacuum cleaners in the US were manufactured and marketed by a company called Aerus. In 2000, under its global strategy to integrate all its brands under the brand name of 'Electrolux', Electrolux AB bought back the rights to use its name in the US from Aerus, by paying $50 million. But, there was confusion as to which were the real Electrolux AB brands and which were the 'Electrolux' brands from Aerus.

Pedagogical Objectives:

  • To discuss the branding and positioning challenges faced by Electrolux AB as it reinvented its operations in North America.

Keywords : Electrolux AB; Global branding strategy; Branding strategy; Consumer durables and appliances industry; Restructuring / Turnaround Strategies Case Study; Mergers and Acquisitions; Eureka; Michael Treschow; Research and development; Marketing strategy; Hans Straberg; White goods producers; Market segmentation

Contents:

  • Background
  • Reason for Selling its US Operations
  • Maintenance of its Presence in the US

  • Reacquisition of the 'Electrolux' Name in America
  • Operation Strategy
  • Marketing Strategy
  • Challenges

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