Bang & Olufsen Business Strategy: Evaluation and Analysis Report

This report analyzes the business strategy of Bang & Olufsen, a luxury consumer electronics firm. It begins with an introduction to business strategy and its importance, followed by an evaluation of B&O's strategic approaches, including competitive, quality, and differentiation strategies. The report then delves into the external and internal factors affecting B&O, employing PEST and SWOT analyses to assess the political, economic, socio-cultural, technological, legal, and environmental aspects of the firm's microenvironment, along with its strengths, weaknesses, opportunities, and threats. The report concludes with a reflection on organizational strategies that aid in strategic evaluation, providing a comprehensive overview of B&O's business operations and strategic positioning within the competitive market.

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

leads to improve the performance. There are different political institution in the EU mainly
minimise the effects of recession and this lowers the interest rate in which firm can be borrowed.
Additionally, recession has enhanced unemployment to 11.6% within September 2012 from 10.3%
in August 2012. It has negative impact on the consumption and spending by the consumers that
mainly causes decrease sales due to lack of certainty.
Socio cultural- There are number of the demographic variables such as are birth rates, age
groups and income distribution all these components are aids to define the demand of the future.
The taste and preferences of the customers plays the crucial role in order to gain competitive
advancement (Claver-Cortés and García-Lillo, 2018). This has put significantly pressure on the
legal authorities’ country that has firm commodity portfolio. B&O has adopted the philosophy that
is renowned in this high class design and quality. So, the commodities of this class are considered as
status symbol and commodities of pride. The change in taste and preference of the customer
impacts the working of enterprise.
Technological- There are number of the enterprise as Boss, Loewe that are the entity who are
known for their design, quality with high price that coming up with new commodities. In order to
compete with the entity the firm needs to take initiatives to undertake technological advancement to
develop commodities that can attract the customers (Ungerer, 2019 Osah, and Khene, 2018). There
are many other firms as Sony, Samsung etc. that produce the high quality commodities in affordable
price rates. In order to compete with vast number of the market leaders within consumer electronics
the rates new technology that tends to be lower and this firm mainly competes with the suppliers of
the small companies. The speed of technology is faster these days and this helps to streamlines the
working conditions of the enterprise. Additionally, technical assistance of the customers helps to
build competitive advancement.
Legal- In this, the firms has to be ensuring about the protection of the trademark of the brand.
In order to be the competitive within the market the entity must use the logos and other kind of
trademark and this must be registered within UK. Henceforth, the quoted entity must be ensuring
about the legal conditions of the market so this cannot impact the working conditions. Therefore,
legal conditions of the firm impact the working of the enterprise and this helps to run business
functions systematically.
Environmental- B&O can be termed out as environmentally responsible firm that mainly
desires to create the sustainable commodities. There are the main consideration and this is inclusive
of the operation, design, longevity of the commodities that must be balance with the environment
impact of production.
SWOT analysis- This is firm that based in Denmark and renowned for the manufacture for the

audio commodities, telephones and television sets. With help of SWOT the firm strength and
weakness can be determined. Therefore, these are defined in following manner as-
Strength-
It is the Bang and Olufsen that has effective resources and capabilities that use to gain competitive
advancement. The quoted entity must maintained vast experience and this undertakes continual
development (Mount, Pandza and Majchrzak, 2018). This has gained the strength over the years as
this strives to ensure that customers always get greatest experience of the commodities. In addition
to it, the design and quality of the commodities is the core of everything that helps to enhance brand
image.
This is the enterprise that has varied number of the Research and development centres across
the world and this innovation will aids within succeeding within the technology sector. It is the firm
that put the business functions that mainly invest in R&D and this helps to create innovative
products. As this results the firm developing the largest patent portfolio among the key rivals.
It indicates the strongest competitive position within the market. The quoted enterprise is
innovative firm that is capable of producing the well designed and ecologically friendly products.
Weakness- Band and Olufsen has seen many successes, this has certain level of certain
challenges. It has managed to produce television that offers the truly cinematic experience. This is
one of the things that has significant threat and this that impacts the customers and working
enterprise. Most of the customers have no options that purchase an alternative from the firm
competitors that offers lesser prices. Project management of this firm is too focused on the internal
delivery system rather than focussing over all kind of the stakeholders interest within the market
(Mount, Pandza and Majchrzak, 2018). It is the approaches that can leads to cause poor public
relation. The demand of the commodities has not been down but there is simmering sense of
dissatisfaction among the customers of the quoted enterprise.
Opportunities- The firm has opportunities that can be funnel in more profit. It is the firm that
has wide number of the team of research and development who has contributed largely and this has
long impact on working of the enterprise. E commerce business model may assist the olusfen design
to get connected with the local suppliers and distributor of the logistic within the international
market. In addition to it, social media growth of the quoted enterprise mainky designed ti reduce the
cost that takes at the time of entering into new markets and reach out the customers at significantly
low level of budget of the marketing.
Threats- This is the enterprise that mainly face the micro environment threats that can derail
business model of the quoted firm design. There are number of the factors that impact the working

of the enterprise in the harsh aspect such as political developments & changes within firm policies,
the changes in preferences, technological innovation and economic growth. Over the years the
bargaining power of the customers has enhanced and this significantly downwards the pressure on
price. This enterprise has also faced the increasing cost components for the working within
developed country due to the environmental regulations.
Hence, the both internal and external factors impacts the working of the enterprise in both the
negative and positive aspects. To manage it effectively, the firm need to cope up with factors that
helps to overcome with operational functions within the enterprise.
TASK 2
Reflection on organisation strategy that assist in strategy evaluation.
Organisation strategy can be termed out as strategy that is inclusive of the sum of the actions
that firm intends to accomplish the long terms goals of the enterprise. Therefore, organisation
strategy can termed out to be the most dynamic plan that route out towards the realization firm
goals and vision. From my experience, I can state that the firm in which I have worked has taken
the number of the strategy to run out the operational function of the enterprise in effective manner. I
have taken the quality approach that leads to have positive impact on the growth of the enterprise.
By focussing over the quality aspect within the commodities of the enterprise aids to build success
and support to attract the wide range of customers within the market. If firm chooses the quality
strategy than the long term customer retention to the enterprise can be possible and high amount of
profitability can be gained. I have seen that the combination of the shifting demographics and new
technological advancement such as automation, artificial intelligence and the increased connectivity
creates the exciting strategically opportunities to organisation that can assist in to have remote,
flexible and agile business teams.
In undertaking organisation functions effectively, the leader plays the crucial role as they are
the main individual to that adapt to ever changing and complex industry. The strategic execution
within the enterprise plays the crucial in relation to decide the sales growth within the enterprise.
Management must provide the additional training to employee so that effective steps can be taken
within the enterprise. By motivating the employees, this can be possible to positively enhance the
working enterprise and this may also leads to get success towards the enterprise. I must say that
external and internal conditions are always changing and this has huge impact on the working of the
enterprise.
Thus, this both components mainly impact the working of the enterprise. In order to build
the long term growth and to attend the competitive advancement the organisation needs to

implement the Porter’s five forces strategies. I have experienced that organisation must develops the
strategy that put their consideration on the type of the suitable strategy and this also helps to put
focus in the competition of the enterprise. In order to be competitive within the market, the
organisation is seeking towards to low cost plan of action that seeks to become leader that provides
the low cost product to its customers (Mount, Pandza and Majchrzak, 2018). It is plan of action that
compare value of hood or service at the lower cost than the competitors. Hence, this can be stated
that lower cost to the firm mainly attract the wide range of the customers and allows the firm to gain
high amount of the profit. With help of example, I must say that Ikea is the firm that has adopted the
low cost leader that put their consideration over the low cost strategy. This is strategy that aids to
have reduction in the bargaining power of the buyer and this also makes hard for the new entrant to
compete. I have experienced that low cost strategy highly forces the less efficient rivals within the
market.
On the other hand, the strategy as differentiation based on the unique features, quality and
other things that mainly affects the working of the industry in huge aspect (Mount, Pandza and
Majchrzak, 2018). I must say that the differentiation is mainly based on to product that creates the
strong emotional attachment that highly supports the premium price rates. I must say that the firm
can enhance and differentiate the commodities with help of using the marketing campaign in which
that can take many steps to attract the customers. On the other hand, this is the firm that produce the
large number of the quality commodities to wide number of technological advancement within the
consumer market. I must say that diversification strategy may assist the working of the industry in
order to gain high amount of the profitability and productivity.
The present era of the market is very competitive, the customer expects to have low cost
commodity within better quality. In this way, I have experiences that integrated can also works as
this offers more valve than the average customers and this also put focus on the keep the
commodities at the low cost. However, this approach can be risky as these commodities highly run
the risk of being too expensive for the customer who mainly focuses on the concept of economy
driver customer. In my point of the view the one of the best strategy that helps to streamlines and
enhance the growth of the enterprise is customer focused growth strategy. This strategy will defined
as process that identifies the wide range of profitable growth opportunities that begins with core
business as commodities, service, customers and channels etc. the firm needs to undertake the steps
in which they must analyse the needs and wants of customers within the market. I must say that this
is the strategy that creates the high impact value proposition for the new customer sub segments.
This is the process that can be created that can assist the both managers and specialist at the
customer that gains the fresh insights into the need and preferences of customers. Customer focused

strategy aids to build the competitive advancement and this also helps to maintain and enhance the
customer retention rate.
I must say that increasing efficiency and productivity comes with varied number of benefits
and this encourages the positive result that helps to frame out the effective organisational
development structure. With the use of the right tools the entity can adapt and respond to business
changes within the market. In my point of view, organisation development mainly creates the
constant pattern of the improvement within which strategies to the enterprise can be developed,
evaluated and assess for the quality results. This is the process that builds out the favourable
environment that helps to enhance the changes within the enterprise effectively. In order to enhance
and develop brand image within the market, I must say that organisation must use innovation
strategy as this provides varied benefits in order to undertake organisation development and this
also connected with the improvement of the commodities and services within the market. Better
engagement of employees within the enterprise leads to have innovation and productivity within the
market. Therefore, this can be stated that competitive analysis, expectation of customers,
organisational development that promotes change and effective market research highly impacts the
working of industry in huge context.
I have experienced that innovation helps to bring better modification in the product and
services. Therefore, enhancement within the product and services leads to attract the customers and
profitability of entity can be enhanced. Henceforth, I must say that communication is the essence of
management as this helps to undertake each thing effectively and efficiently. Thus, effective
communication, feedback and interaction all are the things that align the employees of the
enterprise with the mutual goals, values and objectives. Thus, open communication system of the
firm enables employees to understand the important change within the organisation. However, an
active organisation development enhances the communication within the organisation and feedback
that share the continuously improvement within the enterprise. I must state that organisational
growth may often require typical decision to be made. With the help of developing the talent is
defined as key pillar of work that sustaining the growth and prosperity within community that
requires and put the focus on talent. Organisation development is crucial as this helps the enterprise
in the productive phase. In the last, I have experienced that if organisation adopts the changes
management strategy the entity can undertake the process that bring changes to the working
conditions. However, changes can assist to bring new ideas and ways of doing things and the entity
must undertake innovative approach so that firm can able to high amount of profitability within the
market.

CONCLUSION
Hereby, it can be concluded that business environment termed out as external and internal sum
of total that analyse the business conditions. It helps to analyse the business conditions in the
systematic manner. The present report is based on the entity as Bang & Olufsen, it is high end
luxury consumer electronics firm that designs and manufactures audio products, television sets and
telephone.
Furthermore, report has covered things as to adoption of the strategy by the quoted enterprise.
The internal and external analysis has been conducted with help of analyse the working conditions
and this helps to conduct better performance within the enterprise. Lastly, reflection has been
undertaken in terms to analyse the working conditions of the enterprise and strategy formulation
that assist in streamlining the growth.

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