Strategic Management Report: Bang & Olufsen - Competitive Strategies

This report examines the strategic management of Bang & Olufsen, a Danish audio and visual product company. It explores the application of strategic management principles to enhance the company's competitive advantage. The report utilizes Porter's Generic Strategies (cost leadership, differentiation, and focus) to analyze Bang & Olufsen's market position and suggests the implementation of these strategies to attract customers and gain market share. Furthermore, it discusses corporate strategies such as diversification, market penetration, and market development, along with the BCG Matrix for product portfolio management. The conclusion emphasizes the importance of proactive strategic management for Bang & Olufsen's continued success, offering recommendations based on the analysis. The report provides a comprehensive overview of the company's strategic challenges and opportunities, supported by academic references.

Strategic Management

TABLE OF CONTENT
 INTRODUCTION
 MAIN BDOY
 CONCLUSION
 REFERENCES

INTRODUCTION
 Strategic management is necessary in every organization and business to work
better in the objectives.
 This presentation projects strategic management of Bang & Olufsen company.
 Bang & Olufsen is an audio and visual product company based from the Denmark
which creates the world’s most visual stunning speakers and televisions and stereos,
they give one of the best sound qualities which is unmatchable.
 Some relevant theories and models have been used in this presentation which can
support to this company for gaining huge competitive advantage within the market,
like; porter’s generic strategies model etc.

MAIN BODY
 Background information
 Bang & Olufsen serves in many of countries, but the main market segment
for this company is its home country Denmark.
 Currently this company has very high market reputation within the market.
 It has an effective strategy to distribute its different products and services in
different market segments.
 There are Sennheiser electronics GmbH & co, Bose, and beats companies are
giving very tough competition to this company within the market.

CONTINUE….
 Porters generic strategies
 Cost leadership
 The company need to provide very favourable prices to different customers.
 It is necessary to this company for leading the market by product cost or price
wise.
 Differentiation
 Top-level management at Bang & Olufsen need to develop some different or
excusive range of products for gaining excellent profit within the market.

CONTINUE….
 Focus strategy
 Focus on the cost and differentiation is very necessary task to this company for
attracting lots of new customers towards its brand, because there are already
has very high competition within the market.
 Combing strategy
 Combing strategy means combination of different business strategies like;
expansion, retreatment and stability etc.
 In this situation, upper management at Bang & Olufsen should be considered
this combing strategy as well.

CONTINUE….
 A critical evaluation of the organisation’s strategy
 Top-level management of Bang & Olufsen need to adopt and
implement these all strategies of porter’s generic model.
 By implementing these all strategies within own business environment
this company will be able to gain huge competitive advantage within
the market.

CONTINUE….
 Corporate strategies
 Diversification: According to this strategy, Bang & Olufsen should develop a new
product for the new market segment.
 Market penetration: This strategy will help to company for gaining profit by using
existing product to sale in the existing market.
 Market development: According to this strategy company should enter the new
market segment by using its existing product.
 BCG Matrix: The Bang & Olufsen need o use (BCG) Boston Consulting Group’s
matrix of product portfolio, because this is another useful strategy for gaining huge
competitive advantage in the market.

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.

REFERENCES
 Books & Journals
 Різник, В. С., 2016. STRATEGIC MANAGEMENT AS A BASIS OF
FINANCIAL AND ECONOMIC SECURITY AT THE COMPANY. Велес. (10-
2), pp.114-119.
 Rustamadji, R. and Omar, C., 2019. The effect of strategic management and
organizational commitment on employees’ work achievement. Management
Science Letters. 9(3). pp.399-412.
 Berisha, V., 2017. Strategic Management of Costs: A New Tool to Gain
Competitive Advantage. In Advances in Applied Economic Research. (pp. 239-
254). Springer, Cham.