Bo competitive advantage

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Summary
Introduction ..................................................................................................................................................1 Bang & Olufsen Competitive Advantages .....................................................................................................1 Design Driven Innovation..............................................................................................................................3 Sustainability .................................................................................................................................................5 Conclusion .....................................................................................................................................................7 APPENDIX A:Bang & Olufsen SWOT Analysis ...............................................................................................8 APPENDIX B: Design Philosophy of Bang & Olufsen .....................................................................................9 APPENDIX C: The BeoSound 9000 System ................................................................................................. 10APPENDIX D: Financial graphs.................................................................................................................... 11 REFERENCES ............................................................................................................................................... 13

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Introduction
Bang & Olufsen (B&O) design numerous audio/video equipment, they arenot however the typical ‘black box’ equipment in retail stores. They work with designers and architects to create unique systems for their target consumer. However, before the company was so successful, they had their share of misfortune. During World War II, Germany tried to force employees to work for German suppliers; when they refused, their factory was destroyed. Soon after the war, B&Oquickly rebuilt and gained reputation as “The Danish Quality Brand.” Their idea was to focus on high quality rather than high volume, as many companies do today with the concept of mass production lines. Bauhaus and Scandinavian preferences were vital to the development of the design style. The Beosystem 1200 was the world’s first complete set of matching hi-fi components that was introduced in 1969.Now B&O sells a range of televisions, audio systems, loudspeakers, telephones, medical equipment and numerous other audio products in more than sixty countries. In 2005, B&O collaborated with Samsung to launch the “Serene” phone. The company has a worldwide reputation for idea-based products of high quality and artistic design. All these products are sold in two types of stores developed by B&O.The so-called B1 stores did most of the business and only sold B&O products in high rent locations and were owned by independent dealers. Other sales stores were shop-in-shop outlets. Individual retailers could sell B&O products if they set up a separate section of the store according to B&O’s specifications.

Bang & Olufsen Competitive Advantages
The most important slogan of Bang & Olufsen asthe essence of company that differentiates it from the competitors is ‘best of both: ‘Bang & Olufsen, the unique combination of technological excellence and emotional appeal’. This design focus is reflected not only in their products, but also their strategy and the way their values are expressed through products, all of which represent three important competitive advantages: • • • Unique patentedB&O technology Aesthetically pleasing, clean, sculpted designs Creating a unique user experience, personal feel, emotional experience

So the core competence of Bang & Olufsen’s products are in three areas ; the product’s aesthetic appearance, styling (‘aesthetics’, is referred to as the formalaesthetical function of products), the product’s functional and innovative performance (practical...
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