Professional Documents
Culture Documents
Vicky kr Anand
Vicky KumarYogesh
AnandKumar
Yogesh Kumar
COMPANY PROFILE
Bang and Olufsen is a Danish Consumer electronics
company that designs and manufactures audio products,
television sets, and telephones.
Company has delivered the largest and most consistent design among the worlds
industrial companies portfolio.
Company says Brands are not made by marketing people but by consistent
delivery of a certain condition for many years.
Gained reputation during 2nd World War as a premium audio device maker.
COMPETITION: Asian Market
Competition from Asian manufacturers forced many Danish players to close.
Fake products were being manufactured in china.
B&O survived by allying with architects and designers.
Focusing on its idea, design behind its product, and by emphasizing high quality.
Competition together brought weak product demand.
Formulated Break-Point93
Near Death experience- bought back 25% stakes from Phillips.
Company laid of one quarter of its employees and launched a new distribution
strategy.
Company to sell products through B&O retail outfits.
PROBLEM IDENTIFICATION
Impact of IPod:
IPod extended market to a virtual space, where great design
meant great software and network based interaction.
In 2008 company suffers a catastrophic loss of $126M or 37% year-on-year sales drop.
Subsequent drop of share value by $52 to $8.50
Restructuring at B&O
Sorensen was hired as the CEO to specifically handle this situation
Rejected Idea lab concept.
New CEO Karl Kristian Hvidt Nilesen.
Keeping Consumer interest.
Analysed Problem
Organized restructuring.
Methodology of Restructuring
Main reason behind B&O sales decline is they were lacking on virtual
technological front and advancement.