The Global Economy and the Need for Businesses to be Ever-Evolving –
Choosing “one” article to blog on is always an endeavor. I come across several articles in one sitting and contemplate what will capture your attention or tie into the weekly discussions. I found an excellent site with reputable articles on all topics related to International Business to Business (B2B) and International Business to Consumer (B2C). Instead of focusing on one article and a re-gurgitation of the main points, why not create an open forum where we can discuss the consensus of the International marketplace? Pointedly, this: To survive and thrive globally, businesses need to be innovative and adaptable to the highly volatile state of the global economy.
Marketing strategies and goals should reflect this vision of “Innovation” and always incorporate long-term and short-term strategies. Undoubtedly, the attitude, a “global” thinking and attitude is required and reflected in the leadership style of an organization trickling down to every employee, distributor, supplier, and even the consumer. Keith McLoughlin, the President and CEO of Electrolux (2012) is an innovate thinker who understands the global economy and strategized to market a growing demand for luxury kitchen appliances in a rather shaky global economy. I will briefly touch on the global issues Electrolux faced and the marketing strategy McLoughlin adopted to remain globally strong in the midst of an unstable macroeconomic economy.
First, a quick background on Electrolux: They are a Swedish based company with a 100-year history in kitchen, laundry, and cleaning appliances. The appliance lines are top of the line and are the second largest exporter next to Whirlpool of luxury appliances (businesswithoutborders.com). McLoughlin foresaw an undiscovered market demographic comprised of people who are what he calls it on a “food revolution”, or hip to what they are eating from a nutritional perspective. McLoughlin conducted what every marketing plan requires; research to confirm the market share did in fact exist. Based on this he determined Electrolux would focus on high profit margins and not volume. McLaughlin kept the brand awareness at a high consumer level and he states so eloquently, “It helps put that halo for Electrolux as the Innovator, as the best, as the premium” (businesswithoutborders.com). McLaughlin understands the need to create a marketing strategy with forethought and planning into the future as certain global markets shrink and others open up new opportunities.
Europe’s economy struggles, China’s GDP has dropped, and India is opening up to their borders with an increasing population of middle class. Companies like Electrolux consider the macroeconomic state of the economy and curtail marketing strategies based on the political, governmental, and socio-economic conditions around the globe. For example, as the middle class grows in Latin America and Asia, Electrolux will target 50% of their revenue to come from these developing regions. In addition, McLoughlin believes Europe will recover due to “stimulus measures policy makers in the U.S., China, and Brazil” (businesswithoutborders.com).
Electrolux is but one example of a company thriving within an unstable global economy. We know Walmart has faced challenges, but they are also ever-evolving and becoming innovative with the expansion into India’s booming retail market. Vietnam is another Asian marketplace analyst’s forecast double digit growth in the next 15 years (businesswithoutborders.com). Regardless of the dip in GDP in China; China does have a booming population and growth of the average disposable income. What I see transpiring in successful global enterprises is they are able to shift their marketing strategy in order to meet the needs of an ever-changing global economy, never becoming stagnant and always remaining “innovative” and visionary leaders. Thoughts?