Bang Olufsen 
Industry risk for bang olufsen:
Industry Risks,” presents the ways in which sector characteristics influence the credit profile of firms in that sector, in particular, sales prospects; whether the sector is growing, mature, niche, or global; patterns of business cycles and seasonality; and industry hurdles and barriers to entry, such as capital intensity, technology, and regulations. We finish that chapter by asking whether a specific industry risk may limit a company’s credit quality
Industry risk is defined as the risk of losing revenue or market share or incurring an overall financial decline as a result of industry changes, business cycles, product obsolescence, changes in consumer preferences, changes in technology, reduction in barriers to entry, or an increase in competition. The occurrence of industry risk is not just a recent phenomenon.
Assess the industry’s short- and long-term sales growth trends and potential, and the events and competitors that challenge those prospects. 2. Assess how strong or weak the targeted company is within that industry, especially in comparison to competitors
◆ Sales and revenue prospects Industry can be considered: growth/ niche / highly cyclical/mature /global business The industry, which is Technology Hardware has a rapid cyclicality because a;; companies here want to adapt and beat their competitors, therefore they need to keep working on new ideas and adapting to knew ideas.
Late in economic cycle
Technology firms are considered medium risk industries p.37
“Technology and health-care companies compete on innovation. The key to their success is innovation and the ability to create the next valued product that consumers want, need, and are willing to purchase.” From the book
From the financial report:
Bang olufsen operates in an industry with frequent and subsequent changes in technology. P.29 in order to ensure adequate reserves to implement the “ leaner, faster, stronger” strategy and manage the considerable seasonal
Industry Risks,” presents the ways in which sector characteristics influence the credit profile of firms in that sector, in particular, sales prospects; whether the sector is growing, mature, niche, or global; patterns of business cycles and seasonality; and industry hurdles and barriers to entry, such as capital intensity, technology, and regulations. We finish that chapter by asking whether a specific industry risk may limit a company’s credit quality
Industry risk is defined as the risk of losing revenue or market share or incurring an overall financial decline as a result of industry changes, business cycles, product obsolescence, changes in consumer preferences, changes in technology, reduction in barriers to entry, or an increase in competition. The occurrence of industry risk is not just a recent phenomenon.
Assess the industry’s short- and long-term sales growth trends and potential, and the events and competitors that challenge those prospects. 2. Assess how strong or weak the targeted company is within that industry, especially in comparison to competitors
◆ Sales and revenue prospects Industry can be considered: growth/ niche / highly cyclical/mature /global business The industry, which is Technology Hardware has a rapid cyclicality because a;; companies here want to adapt and beat their competitors, therefore they need to keep working on new ideas and adapting to knew ideas.
Late in economic cycle
Technology firms are considered medium risk industries p.37
“Technology and health-care companies compete on innovation. The key to their success is innovation and the ability to create the next valued product that consumers want, need, and are willing to purchase.” From the book
From the financial report:
Bang olufsen operates in an industry with frequent and subsequent changes in technology. P.29 in order to ensure adequate reserves to implement the “ leaner, faster, stronger” strategy and manage the considerable seasonal