Bang & Olufsen

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BANG & OLUFSEN -GETTING YOUR BANG FOR YOUR BUCK
When a Bang & Olufsen customer buys one of their products, they get much more than just a sophisticated box, they get a unique experience(emotion). Bang & Olufsen (www.bang-olufsen.com) is a Danish manufacturer of state of the art, hi-fidelity(高保真的) home entertainment systems. Through the years, as other successful European electronics manufacturers have been decimated by market forces such as Ferguson, Grundig, and Telefunken, Bang & Olufsen have created 1.their own innovative path to success. The group has turned their performance around by concentrating on the high end(高端的) of the market, turning their back on the mass market and seeking out discerning affluent customers(Price, Status,Self-image), who want quality, performance, simplicity, and elegant design(Reliability ,Durability,Performance, Style/looks). The business is built on design genius and its product development is driven by a half dozen or so creative individuals. Bang & Olufsen are not competing for the general mass market such as Sony, Philips, Panasonic, or Samsung but are fighting for the hearts, minds, and wallets of the rich. The firm now sells an array of home entertainment systems such as speakers, music systems, televisions, speakers, remote controls, telephones, digital media, and car audio systems. Some of these products sell for thousands of pounds. The company was formed in Quistrup, near Struer, which is in Western Jutland, Denmark. The town has little over 11,000 inhabitants. Since 1925, the company has dramatically evolved. It first focused on the manufacturing of radios, and now it sells a diverse range of audio/visual products. For several decades strong competition from Asian manufacturers has forced the company to change its business philosophy. It now focuses on 2. innovative design(Taste, Performance,Style/looks, Fashion), product excellence, uncompromising quality(Reliability ,Durability), craftsmanship(技术) and a commitment to service excellence(Emotions,Value for money,Life-style costs). This has enabled the brand to become one of the most well-known and respected brands in the industry. The Bang & Olufsen brand has become internationally known, and is one of the world’s global luxury brands, ranking alongside Gucci, Louis Vuitton, & Rolex. 2 Figure 1 – Bang & Olufsen – At a Glance

Facts:
The firm was created in 1925.
Its headquarters is based in Struer, Denmark.
Bang & Olufsen employs 2550 people.
The company has over 500 engineers and technicians.
Bang & Olufsen products are sold by over 1100 dealers in more than 100 countries in an extensive network of retail stores. Approximately 65% of these stores are B1 stores, which exclusively sell Bang & Olufsen products. Types of products sold include home theatre systems, telephones, speakers, audio systems, and in car stereo systems The firm also sells medical devices such as a stethoscope(听诊器) device, and tablet dispenser (自动售货机) In a poll conducted by CoolBrands in 2008 (comprising of industry experts and members of the public), Bang & Olufsen was voted fourth coolest‟ brand in the UK, behind Aston Martin, iPhone and Apple. Figures:

Net turnover for 08/09 was 2789.5m DKK (€374m), a decrease of 31.8% from 2007/2008. Decrease was across all Bang & Olufsen markets. Main reasons: Downturn on economy and lack of new product launches in first three quarters of year, therefore failing to meet sales expectations. The firm reported an operating loss of DKK 496 million (€67 million) for 2008/2009 v operating profit of 195m DKK (26m) ikn 2007/2008. The company attributed the loss for 2008/2009 to two main factors; large re-structuring costs (106m) and two lawsuits taken against the company by two of their dealers in France. Bang & Olufsen initially won both cases but when appealed by the dealers, Bang & Olufsen lost both cases with a resulting expenditure of over...
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