Bang And Olufsen Case Analysis

Introduction:

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

This will help in time and cost saving for new product launches. Example would be BeoVision 10 TV which was designed and developed on new strategy.

4. Making sales globally through one organization:

In order to sustain in market, management in Bang and Olufsen Company needs to establish a uniform sales organization system which will provide clear guidelines, action plans and follow ups.

5. Creating and spreading more shops in global markets:

Expanding more shops and stores globally will help in providing better knowledge and awareness among customers about the products which will help in generating more and more sales.

6. Adjusting cost structure:

According to announcements made on 21 October (2008), Company will remain dynamic in by maintaining its activity levels for developing products and abolish jobs in the regions where products are not developed and require less staff for handling processes. 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