Electrolux 2010 Annual Report Download - page 100

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annual report 2010 | part 2 | strategy
Electrolux strategy
Electrolux has completed its transformation from a manufacturing company into an innovative, consumer-driven
company with an organization built on a strong understanding of consumer needs. The combination of innovative
products and a strong brand in the premium segment with the ability to utilize the global strength and reach of the
Group have equipped Electrolux with the best prerequisites ever for profitable growth.
Profitable
growth
Consolidation
Globali-
zation
Transfor-
mation
Acquisition
& growth Today
Up until 1990s Up until early 2000s 2000s Onwards
• Operating margin of 6% or
greater over a business
cycle.
• Capital-turnover rate of 4 or
higher.
• Return on net assets of at least 25%.
• Average annual growth of 4% or more.
Key ratios are excluding items affecting comparability.
Cost
The Group has a competitive production structure in which all vac-
uum cleaners and approximately 55% of appliances are manufac-
tured in low-cost regions. Utilization of the global reach and strength
of the Group will enable synergies to be realized that further reduce
costs and create the prerequisites for more rapid growth.
Financial goals
The financial goals set by Electrolux aim to strengthen the Group’s
leading, global position in the industry and assist in generating a
healthy total yield for Electrolux shareholders. The objective is
growth with consistent profitability.
Products
All new products are born out of the Group’s process for con-
sumer-driven product development. Extensive consumer inter-
views and visits to consumers’ homes have enabled Electrolux to
identify global social trends and needs, to which new products
are tailored.
Brand
The Electrolux brand commands a global position as a premium
brand that represents innovative, energy-efficient products with
attractive design. Electrolux is now a leading brand in most major
markets. 6
%
>
4