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Low-capacity utilization and little product differentiation reduced Electrolux’s competitiveness against low-price rivals during the economic recession. How can Electrolux identify and strengthen its weaker strategic business units in order to maintain its competitive advantage?
AB Electrolux, the world’s second largest consumer and professional appliances maker, offers customer-centered, environmentally friendly premium products. Although Electrolux has differentiated itself as a prospector and prided its business on innovation and incorporating cutting-edge technology, it has been unable to maintain sales of high-profit margin appliances in major European markets and China since the global economic recession. Low-capacity utilization is a major issue that Electrolux must resolve in order to compete on price against its low-priced competitors. With multiple brands and hundreds of products, the company furthermore finds it hard to differentiate itself from its competitors. How can Electrolux identify and strengthen its weaker strategic business units in order to maintain its competitive advantage?
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