1. Please discuss and evaluate Electrolux’s key competitive advantages in the major appliances market. Electrolux was incorporated as Elektromekaniska AB in 1901. In 1919, the founder, Axel Wenner-Gren, merged that company with Swedish AB Lux to form Aktiebolaget Electrolux (AB Electrolux - at that time spelled with a k instead of c). It was listed on the Stockholm stock exchange in 1930.

The idea for the modern vacuum cleaner was born in Vienna, Austria, in 1908. While out on a walk, Axel Wenner-Gren, a Swedish businessman, caught sight of an awkward-looking machine in a shop window. “If I could make this machine lighter and cheaper,” thought Wenner-Gren, “I could sell one in every home.” The rest is history. Wenner-Gren went on to commission the manufacturing of the Lux 1vacuum cleaner