Life – a user's manual Part II - Boksidan

200,00
Electrolux B
180,00
Stängningskurs (kr) .
160,00
140,00
120,00
100,00
Suggestion: extra divident 20 SEK/pcs.
80,00
60,00
40,00
Suggestion: distribute Husqvarna AB.
00-01-03
01-01-03
02-01-03
03-01-03
04-01-03
05-01-03
06-01-03
07-01-03
08-01-03
09-01-03
10-01-03
11-01-03
Datum
Chart 6. The price of the Electrolux share 2000-2011 according to its website, with some press releases highlighted.
In addition, one can argue generally around most businesses and it would not have been unreasonable to
come up with that for example:
In the early 1970s, the cars in Sweden where either made in Europe or in the U.S.. Then came a number of
Japanese manufacturers (Datsun, Toyota and Mazda) and they soon became serious competitors to the
established brands. Meanwhile, the large Swedish shipyards and European apparel industry have been
knocked out by competitiors from the East. Young Chinese companies are growing because they produce
much cheaper than the old companies in developed countries. Just as Japanese companies did long ago. They
can produce cheaper, because they have talented workforce with significantly lower wages than in the old
industrial countries. But they have basically the same costs for raw material (including energy), unknown
brands and long transportation routes to markets in the West. Which means that the less bulky, commodity
demanding and prestigious the products are, the greater the risk that the old industrial companies will be
ousted by Chinese manufacturers. And it is evident in that, for example, western companies that manufacture
computers have had it rough. As IBM, the once largest manufacturer, which sold their personal computer
manufacturing to a Chinese company and now mostly deals with professional service. What industry is the
next in line Appliance manufacturers The forest industry Truck manufacturers Software companies
The Swedish appliance Manufacturer (Electrolux), is probably not so threatened because refrigerators
require quite a lot of raw materials, are bulky to transport and requires quiet little assembly work (since they
contain significantly fewer components than for instance computers).
The forest industry has a relative advantage in that it costs a lot to build new mills, but they do not require as
much staff. Instead, they need to be close to raw materials and customers and that the wood and electricity
prices are low. The latter factors, except timber prices, speak for that the Swedish forest industry would
withstand a possible threat from the east. And concerning timber prices, this factor has so far been minimal
because the fast-growing forest closer to the equator do not have the fiber needed for many paper products.
However, a subset of the forest industry is the Internet and especially e-readers that in the long run probably
will significantly reduce the need for printing paper.
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