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BANG & OLUFSEN: DESIGN DRIVEN INNOVATION

ABSTRACT

This case study analysis discusses the history and current state of Bang and Olufsen and specifically details the company’s "design driven innovation" process. It includes discussion and analysis of factors that will determine Bang and Olufsen’s continuing success - including resource allocation, emerging markets and growth of future competition. It also relates it audio/visual technology and research into the larger discussion of growth and innovation. Analysis will be performed through use of Porter's five forces and a core competencies analysis.

TABLE OF CONTENTS

INTRODUCTION 4

COMPANY HISTORY AND BACKGROUND 4

ANALYSIS 5

REFERENCES 8

INTRODUCTION

Bang and Olufsen is a high-end audio and video equipment manufacturer based in Denmark. The company is known for design innovation and creating distinctive styles over the course of its history. They sell televisions, telephones, DVD players, loudspeakers, digital music players, and other products through stores around the world with UK and Denmark being the company’s largest markets. (Austin & Beyersdorfer, 2006) Bang and Olufsen has enjoyed long-lived worldwide acclaim as one of the leaders in innovation and product development in the electronics industry. The company has often catered to a very niche market segment and has collaborated with some high volume manufacturers like Samsung Electronics of South Korea. (Austin & Beyersdorfer, 2006) A number of its products have earned a place in the Museum of Modern Art in New York (Austin & Beyersdorfer, 2006) and the company enjoys fierce loyalty from its existing customer base.

COMPANY HISTORY AND BACKGROUND

Peter Bang and Svend Olufsen came of age in time of rapidly moving technological innovation. When Peter Bang was 10 he read about the world’s first live radio transmission and soon after - began his first experiments with radio. (Jensen, 2010) These experiments drove him to...