Strategic Management of Bang & Olufsen

Strategic management

TABLE OF CONTENT
...................................................................................................................................1
INTRODUCTION...........................................................................................................................3
Background information and current position of Bang & Olufsen .............................................3
Internal analysis ..........................................................................................................................3
External analysis..........................................................................................................................5
Personal reflection ......................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Strategic management is a procedure of managing the resources of an organization to attain the
goal and objective. It helps the organisation to find out the competition, internal and external
factors which affects the organisation. This report gives the brief information about the company
called Bang & Olufsen. It is an electronic company which deals in manufacturing speakers,
headphones, television and telephones. This report describes the swot, pestle, porters five forces
internal and external factor, and various strategies used in the company and the recommendation
as well.
Background information and current position of Bang & Olufsen
Bang and Olufsen is established in 1925 by Peter boas bang and Svend Olufsen. It is one of the
famous company which deals in the electronic products as speakers, headphones, telephones and
television sets. It gives more focus to the design of the products. The quality of their headphones
and speakers give real life exposure to the customer. It has acquired many small electronic
company to survive in the market and to eliminate its competition. For market positioning B&O
have to be the worlds most craving company in the audio and television brand. Company wants
to serve its customer with innovative and progressive product with standard quality of sound and
designs. The major competitor of B&O is Bose and Beats electronics. For reducing competition
B&O has developed many strategies in which they are focusing on Brand, products and
innovation, channel of distribution, and competencies. The aim of the company is to give luxury
feeling to its customers through their core capacity of unique design, and sound. For promoting
the brand B&O is doing ventures, partnership and collaborations with few of the famous and
largest companies like- HP and HARMAN. By promoting the brand it can set an image in
customers mind. The major opinion behind the development of new product is they cater the
requirement, demand and choices of the customer. They several updates and improvise the
colour and material of the product to attract the customer. By adopting all these strategies B&G
has fall under the top five electric companies in the world (Pröllochs, 2020).
Internal analysis
SWOT: SWOT analysis is the tool which is used to identify the internal factors of the
organization.
Strength: the strength of the company is the resources which they are having which help the
company in getting the competitive advantage. They are having good experience in this sector

and also do the continue development. The company able to increase the sales because they
always think about the customer needs and wants. The products which are manufactured by the
company is of good quality having good picture and sound performance. They have good
customer support team which give timely service to their customers.
Weakness: company has provided plasma TV to the market but that fails as the colour quality
and picture quality were not what customer is expecting while the competitor of the company
have good quality of plasma TV. This results in declining of sales and profits for the company
(Venkatachalam, 2018). Another weakness of the company is their price. Many customers
believe that company offer good quality of products but their prices are high then their
competition which distract many customers from buying the products.
Opportunities: the biggest opportunity is that the company having efficient research and
development team which study the market change carefully so that company can take every
opportunity. Company understand the need of the customer and provide products according to
their needs. Introduction of the advance technology is also the opportunity.
Threat: the competition which company have to face from the rivalry company. The competitor
of the company are manufacturing the products which are of the same quality but comparable at
the low price which attract their customer to shift towards the rival company.
VRIO: VRIO is the technique which is used to analyse the internal resources of the company.
Valuable: this tells that the resource which the company is having adds to the opportunities and
fight against the competition and bang & olufsen have such valuable resources which help the
company in increasing the customer base.
Rare: resources which cannot acquire by every company easily. This give the competitive
advantage. Company have such research team who produce such products which are not easily
copied by everyone.
Costly to imitate: resources which are very expensive so the companies which do not have such
resources for them it becomes difficult to buy or imitate (Islam and Mamun, 2017). Company
focus more on those products which cannot be easily imitated so that they can constantly get
profit over it before any rival company enter the market.
Organization: those resources which are not organized properly will not give any advantage to
the company. Organization of resources are very necessary.