Impact of Strategy on Bang & Olufsen

Strategic Management

Table of Contents
INTRODUCTION................................................................................................................................3
1. Evaluate how strategy adopted by Bang & Olufsen impacts company decisions & activities. .3
2. Analyse the external & internal factors of Bang & Olufsen & how company responses to
themselves........................................................................................................................................6
REFLECTION ESSAY..................................................................................................................10
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13
Books & Journal:...........................................................................................................................13
Appendices.........................................................................................................................................17

INTRODUCTION
Market is wider and broader which gives rise to competition at larger scale. It is important
for organisation to implement strategies and tactics to deal with their competitors and rivals.
Strategic management is defined as management of firm to accomplish goals as well as objectives.
(Ginter, 2018). Bang and Olufsen, a high end Danish consumer electronics multinational
corporation headquartered in Denmark. This report includes impact of strategy adopted by Bang
& Olufsen affected the company's decisions, external and internal factors of Bang & Olufsen and
presentation. With help of strategic management, it is easier to carry out the business functions and
operations. This report gives a brief knowledge about how strategies adopted by firm to survive in
market and their impact on business.
1. Evaluate how strategy adopted by Bang & Olufsen impacts company decisions & activities
The electronics industry is becoming global in the market with their new and updated
technology and methods. In reference with chosen firm, they are expensive as they provide luxury
high end products to the consumers depending upon their choice. The company was founded by two
young Danish engineers Peter Bang & Svend Olufsen (Lasserre, 2017). It have tie up with Amazon
to sell as well as influence their end users. They mostly focuses and targets the upper class segment
customers. They have introduced a new range of product such as Serene with affordable prices.
Marketing strategy-
With rise in competition, they also have adopted marketing strategy to deals with rivals in
proper manner. The manager of entity have a dynamic nature and focuses on continuous growth as
well as development of entity. Management of organisation adopts the effective strategies and
tactics so that objectives are achieved within a period of time. The strategies adopted by company
are discussed below-
Competitive approach-
The selected entity focuses on high grow approach in which they targets upper middle class
people who have above the average high income. They make sure that customers have ease access
to showroom. They do not wish for mass market as they do not wish to wish to appal their end users
like their competitors and rivals. By adoption of this strategy, B& O are able to provide quality of
services with high end luxurious products. Moreover, it has increased their sales revenue 30% of
ratio.
The quality approach-

In terms of quality and services, their prefer their product as lifestyle products which have a
high standards and which lasts for around 15-20 years. They considered their quality as priority of
organisation which is carried out properly with appropriate considerations. By going with this
marketing strategy it have affected their capital structure because it makes sure that it quality is of
high class so that problems or issues are not faced by end users. In this, decision making process is
necessary because it create a deep effect on process of total quality management. Quality affects
firm reputation at deeper level. Intensity of satisfaction depends upon quality provided by
organisation. Through use of this approach, they have goodwill in market & which reflects ethical
nature of business.
Strategy direction at business unit level- At business unit level, strategies are formed in
relevance with different units such as functional, division etc. When strategies are developed
according to business unit, they each perform in different way. It depends upon department head to
develop heterogeneous strategy for every unit (Hitt, 2017). In relation with chosen firm, they
supervisor of every department make assure that competitive approach is used. Each and every
department have different tactics to achieve their given target or assigned tasks. At unit level,
strategies are implemented to achieve short or medium term objectives.
Strategy direction at corporate level- This is concept of strategy in which decisions
regarding the tactics are made which affects the business and operations at deeper scale. It is mostly
used by organisation with aiming of taking advantage over their rivals in market. This is done by
developing or introducing new product different from the existing one. In corporate level strategy,
selected enterprise targets upper class consumers which makes allows them to competitive
advantage in most effective way (Duan, 2019).These are being implemented with motive of
accomplishing long term objectives. Bang and Olufsen have developed their corporate level
strategy by properly analysing market environment.
Portfolio- Bang and Olufsen
Products segments Products & description
Serene- phone
It is phone which is which is joint venture
product between Samsung and B & O. IT