Bang And Olufsen Case Study

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Bang and Olufsen (B&O) is a high end Danish electronics Company which is famous for its stylish design and quality. It was founded in 1925 and manufactures products like integrated audio and video products, Television and phones. In 2007, Company faced a downturn because of global financial crisis, lack of product launches and market shifts with main drivers based on digital and networked technology. Due to this, new management was installed in 2008 which changed the company structure and introduced new strategy plan that was more efficient. New strategy created a sense of urgency in product enhancement, cost cutting and focused on B&O’s unique design. In order to sustain this new strategy, various environmental and capabilities
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Company will also focus on purchasing external services for cost savings according to market condition and requirement. Furthermore, production of mobiles, MP3 players and DVD2 will not be developed because of low sales in market and to save production cost.
7. Bringing in new management:
In order to maintain strategy plan, management will have the responsibility of transforming the plan into action in a very rapid, effective and efficient way. The new CEO appointed by the Company will have the responsibility to maintain the new strategy called ‘Pole Position’ which helps in creating sense of urgency, teamwork and clear tasks to the members of the organization.
Critical points which can affect Band and Olufsen’s strategy according to Ernst (2002) and Cooper (1991) are:
1. Planning effectively before undertaking a product development. This should be done with consideration of market analysis and consumer demands.
2. Launching products on a timely
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According to beoworld (2008), most of technological and innovative companies sometimes focus too much on what the company is capable to produce but Nielsen was very dynamic and straightforward because of which his only 100% focus was on customer and customer needs. He used to identify the products and grab attention of important things which were necessary to improve business. Nielsen, as the new CEO was totally focused on internal profitability and wanted to change the structure of the Company by bringing in new strategy called ‘Pole Position’ which was totally focused on creating a sense of urgency, teamwork and clear tasks for each team member of the

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