Bang & Olufsen

1.1. Introduction

Bang & Olufsen was founded in 1925 in Struer, a small town in the north western part of Denmark, by two enterprising young engineers, Peter Bang and Svend Olufsen. They created the business that was to become an international design icon and a global symbol of audio-visual excellence.

Today Bang & Olufsen a/s is world renowned for its distinctive range of quality televisions, music systems and high-performance loudspeakers; products that combine technological excellence with emotional appeal in a sensational design language.

Bang & Olufsen products are sold mainly by an extensive, independent retail network across more than 100 countries. The majority of these retailers are concept stores, which exclusively sell Bang & Olufsen products.

Besides entertainment products for the home environment, Bang & Olufsen applies it acoustic skills and design competences in creating high-performance sound systems for the high-end car industry, bringing the entertainment experience to a new level.

1.2. Problem proposal

When B&O start thinking to enter on the Chinese Market , from my point of view I can say that they were very brave. In our days most of the electronic products , doesn't matter if they are big or small are produced in China.

They realise that is impossible to enter on the market without a strategic collaboration with a Chinese company, for that they choose Sparkle Roll. Here they use Business to Business strategy .

The big question is what we can do to improve the profit of the company and what they need to change in their marketing plan.

1.3. Delimitation

In this report we need to analyse all the factors , the Chinese market is something different from the European Market , so is possible to need to change the products or important parts of the main strategy.

The focus of this report is on the improvements that we need to do for have a big success in the new market, the Chinese Market.

1.4. Methodology

Porter`s 5 Forces : I have chose to use the Porter's 5 Forces as one of the theories because we can track and find out where could be the possible future issues that the company might find trying to expand their sales .

* Supplier power : In this case the supplier power is high , because B&O produce a lot of electronic products with a special design , and for that they are famous

* Buyer power : Like in every case the power of the buyer is very high , doesn`t matter if is a company or just a simple person.