CASE STUDY: Sustaining the magic at Bang & Olufsen
Bang & Olufsen (B&O) was founded in 1925 in Struer, Denmark and it is considered to be one of the most important Danish design icons and an important part of Danish industrial legacy. B&O is a well-known global brand with a strong focus on design and high-tech solutions in televisions, music systems, speakers, and multimedia products. The company dominates the high-end luxury segment where customers expect exclusive design, quality, and new technological solutions. In 2008, B&O was listed in the Top 20 Cool Brands as number 4 below Aston Martin, iPhone, and Apple.
However, between 2007 and 2009, B&O lost 20 percent of its turnover, and the main markets of Germany, Denmark, and Great Britain suffered in particular. The main reason for this can be explained by a lack of new successful product launches combined with the economic implications of the financial crises that emerged in 2008. Normally, new products launched within the previous 12 months correspond to approximately 25 percent of turnover. Since 2007, new products have only contributed 10–16 percent to turnover.
Technological transition in the market for consumer electronics
The market for consumer electronics is changing due to new technology. A transition from physical and broadcast media to digitally stored and network-based technology is taking place. Hence, the market has become more dynamic due to the rivalry between dominant designs and standards in this new technological era. As a small manufacturer in the electronics industry, B&O is dependent on key suppliers of this new technology. Their expertise and competences in design, loudspeakers, TV screens, and the ability to integrate all video and audio systems into one unit have until recently secured B&O a leading position in the luxury segment.
Set 1: Individual Report
Complete the questions pertaining to the provided case study (Bang & Olufsen).
- Evaluate how strategy adopted by Bang & Olufsen impacts the company’s decisions and activities.
- Analyze the external and internal factors of Bang &Olufsen and how the company responses to them.
Set 2: Individual Presentation Slides
Prepare presentation slides and accompanying notes.
Research two different companies and analyze the strategic solutions that are available. Use examples of related practices/experiences to support your ideas. Provide references for all theorists, materials, statistics, quotations, etc. that you use.
Set 3: Individual Reflective Essay
Build on the work you did in Set 1, reflect on the case study.
Outline how the organization’s strategy assist in their strategy evaluation. This should be based on the company’s competitive advantage and fulfilling its strategic purpose. Include a personal reflection of your experience in the module.
