Strategy adopted by Bang and Olufsen

Strategy adopted by Bang and
Olufsen

INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
Evaluation on strategy adopted by Bang & Olufsen anf this impacts the decision and activities.. .3
Analysis on the external and internal components of quoted and how firm response to it.............4
TASK 2.................................................................................................................................................7
Reflection on organisation strategy that assist in strategy evaluation..............................................7
CONCLUSION....................................................................................................................................9

INTRODUCTION
Business strategy is termed out as plan of actions that aids to achieve the end objectives. In
this competitive era, each of the enterprise formulates strategy that supports to accomplish business
goals (Fderica, Leone and Ferrucci, 2019). With increase in competition the significance of business
strategy is also becoming apparent. It mainly focuses over capitalising the strength of the firm and
use this as competitive advancement to position the brand in the unique way.
The present report is based on business activities of Bang & Olufsen, it is high end luxury
consumer electronics firm that designs and manufactures audio products, television sets and
telephone.
Furthermore, evaluation will be conducted on enterprise that impacts the firm decision and
activities, the depth analysis will be undertaken on external and internal factors of quoted enterprise.
Henceforth, reflection will be taken on organisation strategy that assists in evaluation of strategic
purpose.
TASK 1
Evaluation on strategy adopted by Bang & Olufsen anf this impacts the decision and activities.
Increased focus on strategic areas like sound, acoustics and introduction if new commodity
category can sell through complementary channels and shops that contribute significant growth
within business activities of enterprise (Doan, Tavernier and Dewettinck, 2018). In order to
accomplish the maximum amount of profitability within the market, the firm has developed and
innovated its commodities. All the commodities are integration of design, quality, functionality etc.
This is the enterprise that always keeps the product concept in such a manner that helps to satisfy
the needs of customer and update their products frequently and in more dynamic manner.
Thus, it can be stated that this is the high tech enterprise that is experiencing furious
competition within the global market. It can be called as one of the leading electronics and
entertainment that offer the quality digital ad media products to the mass global market. This is the
firm that produces and develops the wide range of digital appliances as audio and video
commodities. Henceforth, this firm has following strategic approaches as are-
Competitive approach- It is the enterprise that has always used high-brow approach. There are no
other direct competitors that product without any relation to the preferences and needs of the
individual’s end users (Shahzadi, Khan and Haq, 2018). This enterprise locates their showroom to
close to their customer’s residence. This is the enterprise that uses the unique designs and high

qualities so that can be notable points of selling to each commodity.
The quality approach- In order to reach the wide number of the customers this enterprise has
developed the marketing and communication strategy. It can be called out as the lifestyle oriented
strategy that mainly aims at the international target group (Ebrahimi and Banaeifard, 2018). This
entity also uses the niche marketing tactics that operates under different margin scheme other than
the Sony, Phillips and Samsung.
Differentiation approach- It is the enterprise that has not built on the low cost structure. Each of
the commodities of this enterprise is unique in the market. Under this strategy, the quoted entity
uses to differentiate the commodities from those of potential competitors. It also creates the market
based advancement (Nwachukwu, Chladkova and Fadeyi, 2018). This is the strategy that is hard for
the potential competitors in terms to imitate because the differentiation within the commodities is
integrative. Hence, all the commodities are integration of the design, quality and functionality.
Thus, it can be stated that the quoted enterprise used to be one of the major players within
electronics market. The one of the main goal of the entity is to create the more dynamic and
engaging customer experience within the shops around the world (Nienaber, 2019). Additionally, it
will mainly put consideration and this creates outstanding value to existing partners through
development of innovative sounds system that helps to enhance brand image. In order to ensure that
the firm continually delivers high value to the customer within the future. It is the enterprise that
uses the new product development that helps to enhance the competitive advancement. Henceforth,
this is the enterprise that mainly develops highest value of design, provides outstanding
performance and long term reliable service.
Analysis on the external and internal components of quoted and how firm response to it.
In order to analyse the microenvironment the PEST analysis will be conducted that consists of
the political, economic, socio-cultural and technological etc. therefore these are defined I following
manner as are-
Political- political stability of the Denmark is stable for B&O and their concern mainly relates
towards the instability of the EU due to the economic conditions. At the national level, Denmark is
currently under the legal authorities and this has enhanced the tax level to be highest and the rate of
GDP is 48.2%. This also led to enhance within the company tax and this also reduce firms
international competitiveness (Maritz and du Toit, 2018). Due to the regulations of the EU, the firm
reduces the chance of trade barriers.
Economic- The inflation, price and all other impacts the working of the industry. Economic
well-being and expectation of the economy are crucial for entity ability to attract customers and also