Bang & Olufsen Company: Assessment Competitive Situation (Essay Sample)

Bang & Olufsen Company
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1 Assessment of the competitive situation
Bang & Olufsen had its original headquarters in Denmark and had lasted for over 80 years by 2007. Throughout history, the B&O Company has been reported to record good results in the market due to its strategies. Technological edge is one of the major reasons behind the company’s commendable competitive advantage in the market. Product evolution has been another strategy that the company has used to stand out from the rest of the competitors. Through these two forms of evolution have ensured that the company attracts potential customers and as well retain the existing customers. Customers often find the latest electronic equipment such as TV’s, DVD’s and sound systems. However, the company has faced stiff competitions from the established companies such as Sony, Philips. B&O has adopted a unique business model that has been efficient in cushioning the company from the external shocks existing in the market. B&O has managed to attract customers from the elite group who have the capacity to purchase a whole set of electronic products. Despite the available strategy used by B&O, many companies have made huge investment in product development, which adopts a modern technology.
2 Description of the B&O designs process
The design process by B&O Company is the main approach through which the products were designed and developed. The design of a product by the company was always initiated by an idea suggested by a designer or an engineer. Such ideas crop out from market research that can detect market opportunities or demand for new technology and material. The process of developing an idea is excellent since the idea provides the company with the strategic market demand. The report by Austin and Beyersdorfer (2007) revealed that the company had discarded several ideas on the grounds that they did not meet the recommended threshold. It implies that the company has a primary threshold which they dwell on before approval of any project. It is an excellent idea that the company has a framework for designing and implementing new projects. Some of the factors that the company uses to approve projects include feasibility of the project. A project whose market value cannot project is always risky, and most companies would shy away from adopting such projects. The move to ascertain the feasibility of the project is a health take for the business financial status.
3 Strengths and weaknesses of the design process
As mentioned before, one of the strengths of the B&O Company is the fact that it has a threshold for approving new designs. The threshold provides all idea injectors and developers with a bottom-line which they use to design. Another commendable aspect is the feasibility consideration of all new designs. All designs that fail to meet the financial goals of the B&O Company are rejected since the uncertainty can lead to losses. Attraction and retention of new talent provided the designing department with a cutting age regarding innovation.
Shyness to invest in new uncertain project stands out as one way of locking out the lucrative products from being designed. The company has also signaled some deficiencies regarding analyzing the competitors’ technological advantage. These two factors can easily give away new ideas to the competitors, which can provide a competitive edge for the competitors. The lack of a standard process for designing products is also another shortcoming for the B&O Company. The company sticks to its cultural product genes, which significantly lock out external ideas with the potential creating lucrative products. Fear to spend in experimental products is one major way of locking out potential ideas.
4 Assessment of the ideal approach to changing of the B&O
The Idealab approach was one of the innovative approaches that were initiated by C&O Company in the year 2004 with a main goal of assessing the stages of product development. The focal point of the ideal was the computer innovation. The move was initiated after the company’s management established that the competitive world and the overall digital environment were fast evolving. The idea was a unique one since the blue ocean environment is characterized by enormous technological development. The Idealab project is commendable...