Strategic Management Analysis of Bang & Olufsen: Report

This report provides a strategic analysis of Bang & Olufsen, a luxury Danish electronics company. It examines the company's strategic direction, including Porter's Generic Strategies (Cost Leadership, Differentiation, and Focus), and evaluates its corporate strategies such as diversification and market development. The report also applies the BCG Matrix to assess the company's business portfolio, categorizing its product lines (e.g., automotive, MP3 players, TVs) into Stars, Question Marks, Cash Cows, and Dogs. Furthermore, the report discusses strategic solutions and provides references for further reading on strategic management principles and frameworks. The analysis aims to provide a competitive edge and maintain competitiveness in the market.

Strategic Management

• Introduction
• Strategic solution that support organisation
• Critical evaluation of the organisation’s strategy
• Conclusion
• References
Table of content

Introduction
Strategic management offers all over direction by developing plans and policies created
and formulated to attain objectives and then assigning assets to implement the plans.
Ultimately, strategic management is for companies to earn a rivalry benefit over their
rivals. This section is based on Bang & Olufsen which is a luxury Danish electronics
company and operated its business globally.

Strategic solution that support organisation
Porter Generic Strategies
Cost Leadership- In this strategy, the organisation set low cost to its products with the
purpose of gaining competitive benefits increasing sales and profitability.
Differentiation- Within it, the enterprise search to be exclusive in its industry along
some dimensions that are widely valued by purchasers.

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Focus strategy- This strategy has two variants
as cost focus and differentiation. In term of
make development either, the management
can implements cost focus strategy to search a
cist benefit in its target sections or
differentiation focus to make separation in its
target segment.

Critical evaluation of the organisation’s
strategy
Corporate strategy direction
Diversification- It is an effective strategic direction that can be adopted by the
management of B&O in term of making development in its business. There are two kinds of
diversification related and unrelated.
Market penetration- In B&O, by implementing this strategy, the firm can make
innovation in its pricing strategies and promotional tools to get attention of its target
audiences.

Market development- This strategy is risky than penetration as by adopting it the firm
can expand its business in to new market with existing commodities and services. the
administration of B&O can adopt this strategic direction to make development in its
business by making presence in that market where it is not exist.
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BCG Matrix- This tool and framework utilises market share and market
development criteria for determining the attractiveness and balance of business portfolio.
The description of this analysis in reference to B&O is as below:
Stars- Since many years, the respective firm has one product group in this category,
namely the B&O automotive section.
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Question mark- It could be determine that B&O MP3 player and mobile phones fall in
the category. Orgsnisation’s market share in these market are through evaluated to be very
small, as it is not even potential to compete with other existing MP3 and mobile phones
producers in business sector like Apple, Samsung and many more that already have captured
large shares of the marketplace.
Cash cows- Video especially TV group can belong to this category. The organisation’s
market share of B&O in the entire TV market is in high niche in European marketplace.
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Dogs- It is a business that has low
share in static or reduction in markets,
these kinds of business units are
included worst of all combinations.
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It has been summarised that to earn competitive edge and maintain
competiveness in a particular market, a business venture can consider differ models
and framework like, Porter’s generic strategies, Corporate strategies direction and
BCG matrix etc.
Conclusion

•Barbosa, M., Castañeda-Ayarza, J.A. and Ferreira, D.H.L., 2020. Sustainable strategic
management (GES): Sustainability in small business. Journal of Cleaner Production,
p.120880.
•Schilling, M.A. and Shankar, R., 2019. Strategic management of technological
innovation. McGraw-Hill Education.
•Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health
care organizations. John Wiley & Sons.
References