Strategic Management Assignment Sample on The Bang & Olufsen (GC0439)

Table of Contents

1.0 Introduction.

2.0 Evaluate how the strategy adopted by Bang & Olufsen impacts the company’s decisions and activities

2.1 Strategy adopted at the business level

2.2 Strategy adopted at the corporate level

3.0 Analyse the external and internal factors of Bang & Olufsen and how the company responses to them.

3.1 PESTLE Analysis.

3.2 SWOT Analysis.

Strengths.

Opportunities.

Threats.

4.0 Conclusion.

5.0 Reference.

1.0 Introduction

Bang & Olufsen is a Danish electronics company. It manufactures mainly speakers, headphones, televisions, telephones these electronic products. Peter Bang and Svend Olufsen established the company in 1925. Bang & Olufsen has over 1000 employees and more than 70 stores. The products are with a beautiful sound, excellent design, and incomparable workmanship. Bang & Olufsen’s radios, loudspeakers are well known in the market for their integrity of no limitations. Bang & Olufsen also owns a medical sector that produces medical ingredients like inhalers and automatic syringes. In 2012, the company has got a new member of the family named B&O PLAY (Fabrik Brands, 2018).

In this report, different kinds of business strategies for the business level and corporate level are described. These strategies are also discussed in the case of Bang & Olufsen company that what kind of strategy they are followed to run their business. In the later part of this report, the internal & external factors of Bang & Olufsen are described. The company’s strategies or responses to these factors are analyzed. This report Evaluates how the strategy adopted by Bang & Olufsen impacts the company’s decisions and activities. All of these things are described in detail in this report to completely understand the business strategies of Bang & Olufsen.

2.0 Evaluate how the strategy adopted by Bang & Olufsen impacts the company’s decisions and activities

2.1 Strategy adopted at the business level

According to Garcia (2018), the business strategy can be defined as a subject that is helpful for the investors to take the decisions to achieve the business goal. It is the basis on which a company directs its operations to ensure a competitive position in the market by satisfying their customers. The business strategies of a company can be described with four basic elements. They are cost leadership; differentiation focused on cost leadership and focused differentiation.

Willia (2015) claimed that Cost leadership is the concept that teaches Bang and Olufsen how to create its mark in the business field by competing with others on the basis of price. Pricing of the products is a competing factor for cost leadership. Bang and Olufsen ensured that they should fix the cost of a product that is less than the other competitor companies. Bang and Olufsen need to attract a large number of customers. This concept follows the strategy of controlling the rigid cost. Differentiation indicates the product uniqueness of Bang and Olufsen. Bang and Olufsen manufacture products with different designs. They should add new features to their products and should ensure something new that customers do not get before.

Bang and Olufsen is an important strategy to bring something new as customers are always searching for new products. Focused cost leadership means that Bang and Olufsen compete on the basis of price but they should focus to create a perfect market for their business by giving their services to a specific group of people. The main concept of this strategy is to focus on a group of people who will be getting the service of Bang and Olufsen. Bang and Olufsen raise or reduce the price of their products according to the choice of those people. This thing will create a chance for the company to get a reasonable price for its products which helps them to gain more profits. Focused differentiation tells to be focused on a small segment of a market. The concept of this strategy is to select a perfect area for the business where Bang and Olufsen will not face strong competition (Keichel, 2014).

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Bang & Olufsen has the tendency to develop their products with great design, innovation, and function. The company gives big importance to the factor that presents their products with unique value and different levels of purposes. They want to make their brand iconic to their customers. So, it can be said that from those four elements of business strategies, differentiation is the most important one for Bang & Olufsen. The company also follows the other concepts to expand their business more and more all over the world. They fix the price of their products very carefully as the customers can satisfy with the price. They also keep in mind that they need to compete in the market with the other companies. So, it is very much clear about Bang & Olufsen that they give great importance to the factor of differentiation to establish their products firmly into the market. They also focus on fixing their prices for the products which help to enlarge their business and also satisfy their customers (Keichel, 2014).

2.2 Strategy adopted at the corporate level

According to Lopez and Martin (2018), the corporate level of strategy is the strategy that sets the goals of a company in existing market conditions. A mix of business units is observed to achieve success for the whole company in the corporate business strategy. Market penetration, market development, product development, market penetration are the main elements of corporate-level strategy…………….