Assume that the most immediate case decision issue is the following:
Electrolux needs to determine the pricing level that creates the most value for the customer.
- Internal and External factors play a role in how Electrolux should solve this dilemma. Internal factors are
those in the microenvironment, and are “controllable” by the company. There are TWO internal factors that are
central to this decision. What are they? Also, for each of them, how might it affect Electrolux’s decision?
External factors are those in the macroenvironment, and as such are “uncontrollable.” For each of the following
factors, what is occurring in that environment that would affect the household appliance industry, especially in
relation to this case dilemma?
Sociocultural Environment
Competitive Environment
There are TWO other external environments that are critical to this case decision. What are they? Also, for
each of them, what is occurring in that environment that would affect the household appliance industry,
especially in relation to this case dilemma? - A savvy company can brainstorm many potential solutions for solving their dilemma. For the following
possible alternative, please list two “pros” and two “cons.”
Alternative #1: Electrolux should compete in the premium pricing level for vacuums.
Alternative #2: Electrolux should compete in the mid-pricing level for vacuums. - The above alternatives are alluded to in the case, however there are many others from which Electrolux
could choose. What is one additional possible solution you can think of, and what are two pros and two cons
for each? - Of the three alternatives mentioned above (questions 18 & 19) and based on what you know from the case,
which do you think is the best option for Electrolux? Be sure to list your choice and the rationale for it.