Strategic Management in Bang & Olufsen: Strategies, Factors, and Analysis

This article discusses the strategic management strategies, internal and external factors, and analysis of Bang & Olufsen. It covers competitive strategies, branding and marketing, managing people and processes, and more.

STRATEGIC
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Strategies and its impact in company decision:-..........................................................................3
External and internal factors of Bang & Olufsen :-.....................................................................5
PART 2............................................................................................................................................8
PART 3............................................................................................................................................8
Reflective Journal........................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management is necessary in every organization and business to work better in
the objectives. Strategic management refer to all the strategies which are applied or need to
manage to find company objectives. Bang & Olufsen is an audio and visual product company
based from the Denmark which creates the worlds most visual stunning speakers and televisions
and stereos, they give one of the best sound quality which is unmatchable. Peter Bang a
successful business man and the business is started in 1925 and since then the company is
working to provide the best quality and services to the customer. Bang & Olufsen focused in
providing new ways of technologies and variety product. The report will explain the case
scenario of the company Bang & Olufsen and the strategic of its management and working .
Further, in report the segmentation and market will be discussed. Internal and external factors
which affect the business and company in its decision and the strategies adopted by the company
for decisions. Pestle and swot analysis & porters five forces in the report will be explained
further. Leadership and differentiation and focus strategy will be explained in the report.
PART 1
Strategies and its impact in company decision:-
Competitive Strategies:- Competitive strategies are the strategies which reflect the ways in the
external strategies of a business in external factors and it helps in providing the benefits with the
competition. Company need to focus on the strategies which can help them in achieving the
goals before their competitor and help the company in finding the best of the solution before
other competitor in market. This strategy help Bang & Olufsen to compete better in market with
its high competitor like BOSE (Schilling, 2019). It is a competitor angle that include the tactics
which lay down the various ways to be build livable.
Branding, Marketing & image:- Branding, marketing include the promotion of the product
made by the company which is important as it can help in reaching the most of the people to a
wider range so that it can help the company in its benefits and company goals. Promotion is
important for the company and it is a strategy adopted by the company to reach wider audience
and sale on large scale. Promotion helps in maintaining the company objective and it is important
to Bang & Olufsen to make decision regarding the promotion and its strategies to the target
market.

Managing People, Process & Benefits:- strategies of people process and benefits include the
company's process of working and company people and their role and process in the
organization. Company always give decision regarding their process because it is important
for the company to work in the best process of working to its employees so that it can
beneficial growth to its employees and managing people in the organization is important
because it helps in future loss of employees so that if employee left company doesn't get
affected by this (Ansoff, 2018).
Retaining consumer and Maintaining Communication:- Company required employees to work
but the company main aim is to satisfy the customer and for that they need to provide the best of
the services, and they need to focus on providing the best quality service and product to their
customer for the money they ask on their product. It is important strategy to communicate with
the customer which help the organization to understand their lack points and it also helps them to
provide the best of the services according to their feedbacks.
Technologies:- Technologies plays a very important role in today's market as to work in the
competition market the company need to work according, and they need to provide the new
technologies to their customer before their competitor does. New technologies in the product
attracts the customers and it also helps the company in finding the best of the ways to ease the
work of their customer. (Technologies) helps in understanding the decision as technologies gives
advancement in feedback in the organization by the consumer on the website and online feature
by which company can take decisions according to the situations of the criteria (Lasserre, 2017).
Mentoring and community involvement:- Mentoring in the organization is important as it helps
in understanding the best of the situations and it also works as proof to the organization heads.
Top management always monitor the employees, and they have a separate team to monitor the
organization teams and customer as well.
Differentiation strategy:- Differentiation strategy are the strategies company make to involve
the product different from their competitor and it helps the company to stand apart from other
competition, It helps the company in finding the best ways to make their product different with
preferences of the consumer choices. For success the Bang & Olufsen try to focus on innovations
and search of new production.
Vertical Strategies:- Vertical strategies are the ways in which a company works and it also
focuses on the structure, It shows the total control of the company from its stock and raw

material to after services of the product. Bang & Olufsen work and the concept and it helps them
in providing the better services in their product to consumer.
External and internal factors of Bang & Olufsen :-
Competitors Market :-
Porter's Five Force:-
Competitive Rivalry:-
The competition in the market in the rivalry to Bangs & Olufsen.
Rivalry in the market is high in this field to the Bang & Olufsen as the market is so strong of the
company and the competitor need to provide a lot more to affect the company. Bang & Olufsen
are in the market. From a long period, and they are providing services in technologies by the
product like sound accessories, speakers and Televisions. High rivalry influence company in
price cuts, and unique ability in the price and product.
Suppliers Power:-
Suppliers power is medium in this industry to the company.
Suppliers power is medium in this as it have a wide range of suppliers but on some situations
providing unique product affect the supplies on particular products. The more the suppliers the
easier it gets to cut the cost in price.
Buyers Power:-
The buyer power is high in this market.
The power of buyer depend upon the competition as it is a factor which reflect the power of the
buyer and it also affects the same to the competitor. Buyer power is high because of the
competition and the variety of choices to the buyer from different brands. It reflects the situation
as Bang & Olufsen have lots of competitive rivals.
Threat of Substitute:-
Their is low level of threat in substitution in the company
Substitution threat is very low to the Bang & Olufsen because of the product quality they provide
to their customer and the services too. The company focus on most to the quality which is
appreciated by the buyers itself.
Threat of New Entry:-
New entry threats in the market is medium to the company.

The threat of new entry is medium as the company have established their name in the market,
and they keep on innovate the new ideas so that the new competitor doesn't affect the business of
the company (Lewis, 2017).
External Factors :-
Pestel Of bangs & Olufsen :-
Political:- Political Factor is all about degree of government intervene in the industry or
economy. It helps in understanding the situation of the industry and it lacks as more of rules and
regulations from government affect the working. Negative factor in the company as the
regulation of the country and their issues in different location with different rules.
Economic Factors :- Economic factors are the economic performance of a industry or state. It
includes all economic factors which impact the organization in the industry. Economic negative
impacts are the purchasing power, on other hand help in benefits to employment.
Social Factors:- Social factors are the factors with dimensions in general environment &
demographic, norms, value of population. It positive effect are safety, careers, health for the
company and negative aspects are the population growth which effect organization
Technological factors:- Working in technology field it is important to be advanced and Bang &
Olufsen technology is most important to its competition and for the organization, It also includes
the ecological aspects and availability of services as well and it addition to this it also increase in
the costing of the product.
Legal Factors:- Legal factors involves laws and regulation which can effect the business
organization and its operations. It includes legislation of the current and its impending which
trends in industry and impact the areas which include safety, employment and health.
Organization need to consider the national and international laws in business operations. Positive
of legal is work with regulation and rules and negative are the times and approvals.
Environmental factor:- The factors which involves the impact and influence of environment and
surrounding to the organization are environment factors. It effects positive by the natural aspect
of environment which help the organization and negative effect can be the natural disasters in the
climate etc to the organizations (Wellner, 2020).
Industry life cycle:-

Industry life cycle refer to the life period of an industry and the stages from where the
business process, operates in the industry. It is divided in 5 stages:-
 Start up :- Start-up is a stage when the company starts in an industry for debut time and at
that time the demand of consumer is limited due to its unfamiliar name. At this stage
company generate low and zero revenue and may be negative in cash flows.
 Growth:- Growth is a stage when the company slowly putting efforts and increasing its
sale in the market and making a good goodwill.
 shake out:- Shake-out refer to the stage of consolidation in the industry you work in.
There are business which naturally gets eliminated because of their unable to grow
strategies. On other hand those who survive expand their business.
 Maturity:- maturity is a stage which reflect the organizations market value and goodwill,
It is a stage of well establishment and the saturation point of the company in industry. At
this stage the company realize the maximum profit and cash flows.
 Decline:- This reflects the last stage in the life cycle of an industry, the competition
intensity cause the decline industry in several ways like exit strategies, fixed costs.
Bang and Olufsen is at the maturity stage in the industry, and they are focusing on to keeping the
best of the product and services to be on maturity and doesn't decline. The company is
developing more strategies to make sure that they retain the customer, and they try to improve
more of the communication ways so that they can understand more to the customer feedbacks.
SWOT analysis:-
Strength :- Strength of the Bang & Olufsen are their variety of products and the quality they
provide to their customer. Company strength is their goodwill in the market and their market
value which attracts the customer to them and help in business.
Weakness:- Weakness are those which effect organization and weak parts of an organization.
Weakness in the Bang & Olufsen are their prices which are higher than the competitor which
make the customer choose between the substitution product. Weakness is the most of the
business rivals which try to eliminate the company product and substitute products (Gürel,
2017).

Opportunities:- Opportunities are very high in the technologies field the company have a lot of
opportunities in this industry as it is a wide industry and the opportunities are to grow in
innovation and to expand in new country and diversification in global market.
Threat:- Threats are the competition and the rivals of company, the fewer prices of competitor
products are the threat company is facing, and they need to work on to provide more variety to
its customer. More threats are the inflation in the market which decrease the sale and buyers
behaviour and the trends in the market as company should always be updated to work in market
(Tang, 2017).
PART 2
Covered in PPT.
PART 3
Reflective Journal
It is very essential for any organization to be able to function effectively in the market
with the help of analysis and other frameworks which can be used so that there is going to be
higher performance. There are a lot of strategies which are present in the market and they can be
used by the organization to get a promotion in the market (Bryson and George, 2020). There is
an effective method like sales, discounts, offers, etc which are being used by the company so that
there is a better operation. The competition in the market is increasing and it is very essential for
the company to be able to compete in the market but for that there is a requirement of having a
strong workforce and experience in the market. Bang Olufsen is having a lot of experience in the
market and that is a great factor for the company. The services and quality of the products have
to be maintained so that there is a better reputation and brand image which can be present in the
market. There are a lot of decisions which have to be made in the organization so that there is a
better functioning and operations which are taking place (Doyle and Brady, 2018). The
customers of the organization have to be satisfied with the services and products of the
organization which can happen from the quality maintenance of the products so that the
organization will be able to have higher reputation.
There have to be right employees which need to be hired who have the right strategies
and methods of functioning. The cultures are very different from one company to another which

is why the training and development of the employees has to be very effective so that the
standards of the organization can be maintained. To have high quality products there has to be a
good communication in the organization so that the changes which are required can be given to
them. The employees must get all the rights in Bang & Olufsen only then the organization will
be able to have a higher performance and the demand in the market is increasing which can be
fulfilled by the organization (Höglund and et.al., 2018). The needs and demands of the people
are shifting and that also has to be implemented in the organization so that there is a higher
market share of the company. If the employees are not given then they will not be motivated
enough to make the company be able to achieve their objectives on time and the satisfaction
level of the customers are also not going to be enough for the company to be able to have a stable
economic factor. The materials of the company are well maintained because there is an effective
workforce who is working in Bang & Olufsen which is going to make the company get a
competitive advantage. The focus of the company is on the quality and the maintenance of the
services so that there is going to be a better experience of the customers in the organization.
To make the right decision for the organization there has to be a good understanding of
the external and internal factors of the organization so that the company will not have to take
risks to be able to operate in the market (Ertek and et.al., 2017). There must be a strong control
on the organization so that there is going to be right measures which can be taken by the
organization. It is very important for the organization to be able to have the right supplies in the
organization so that they will be able to have a strong base for themselves. The employees are
being trained in the market so that they get the right information and knowledge about the
organization and industry so that they will be able to reach the expectation of the organization.
Employees have to be given the safety, security and health rights which they deserve so that
there is going to be a better expectation (Koseoglu, 2016). There is information technology
which is being used in the organization so that there would be an effective functioning (Pavlatos
and Kostakis, 2018). The customers in the organization are very attractive to the organization
and have a strong respect for the company to have a stable functioning. There are feedbacks
which are being taken by the customers of the company so that there would be a strong
functioning and the company will be able to improve the services and products of the
organization. The company is having a lot of competition in the market which will have to be

analysed and then the right strategies or change of strategies will have to take place according to
them so that there is a higher profit margins which is going to be good for the functioning.
The demands of customers have increased rapidly and the unemployment rate in the
country is also falling so that the organization will be able to operate effectively. The
organization must work on their brand image so that they can have a better functioning and the
organization will not be able to operate in the market. The employees lose interest in the
company which is why it is very important for the employees of the company to know the factors
which are important for them to know. The information about the market and the customers must
be taken out by the professionals and experienced people so that there is a better functioning.
There is a structure to be able to understand the operations which are taking place so that the
organization will be able to function in the market. There are websites and other social media
accounts of the companies so that there are all the information’s which can be let out to the
customers of the organization (Voinea and Van Kranenburg, 2017). There has to be a success or
at least a exit plan so that the employees and the organization will be able to maintain their
reputation and standards in the market for a good functioning.
Description
I was assigned to do the project on bang and Olufsen. This is a very organized
organization. Ann is dealing in Music equipment, which helps to increase the quality of Music. I
have analyzed that it is very important to understand all the strategic factors which helps to
develop more effective strategies and understand all the factors of the internal and external
environment. You to increase in Competition it have been very important to understand all the
strategic options. To increase the growth of company and develop effective Profit margins.
Feeling
While I was making this project, I felt it was very necessary for me to understand all the
strategies and management principles which helps Me to make effective decisions. To increase
quality of organization (Venkateswaran and Ojha, 2017). I’ve been feeling that there are
different types of business strategies and quality of products available in the market, although
Every product and services have there. Unique quality which helps to increase the selling point
to improve market size and grow effectively.
Evaluation

I haven’t lived while doing this project that it is very important to determine the cost of
all the factors while developing strategies, as it is very important to increase the profit margins
Of the organization. While I was making this project, I Understand that human resources capital
is very essential. To develop a competitive advantage in the organization and maintain (Punt,
2017). The competition in the market. Company is following. The quality and developing more
and more effective strategies to increase the quality of products and services which helps to
increase the customer satisfaction and improve the brand value effectively. It also provided me
information about the difference quality of information which is used to Develop informed
decision and compete in market to generate more revenue. To grow and expand in the future.
Conclusion
From this report I am realized that. There are many options. Which helped me to provide
better and make effective Decisions. It helped me to understand that there are different skills and
knowledge which I have to develop in myself. To become effective professional and a leader in
my professional career and become an effective leader. I got to understand the importance of
analytical tools which are used to understand all the factors to compete in the market and gain
effective to attain competitive advantage And increase profit margins.
Action plan
To increase my potential I will have to develop leadership and management skills and
knowledge to increase my decision-making abilities I will also develop effective communication
skills to communicate In the market to attract more customers and increase my sales effectively.
By understanding all the cost effectiveness in the business (Akhtar and et.al., 2016). I have to
Learnt Management information systems and adapt change to become more competitive attain
code competency in the market effectively. By understanding all internal and external strength of
business organisation I can help company to develop effective marketing strategies to increase
their sales and reduce all the challenges to gain core competency effectively.
CONCLUSION
It can be concluded that top-level management at Bang & Olufsen should take quick
action towards strategic management. This is very necessary task to this company, because by
managing different strategies Bang & Olufsen will be able to gain huge profit within the market.

This report has involved different business strategies which existing management of company
needs to be considered to achieve very appropriate outcomes.

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