The Grundig Story

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BSTR200 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Failure of Strategy | Bankruptcy
Case Length : 16 Pages
Period : 1980-2005
Organization : Grundig AG
Pub Date : 2006
Teaching Note : Not Available
Countries : Germany, United Kingdom
Industry : Consumer Electronics


Grundig AG was a major player in the German consumer electronics industry. In Germany, the Grundig brand enjoyed an iconic status. Even in other parts of Europe, the Grundig brand had a high brand recall. The company started with manufacturing and marketing radios and graduated to cover almost the entire range of consumer electronics including TVs, hi-fi and audio/video equipment. The case traces the origins of Grundig, its failed association with Philips and the financial mess it was in. The case throws light on the factors that propelled the company into bankruptcy. The case also profiles Alba and Beko, Grundi's new owners. Grundig's prospects under its new owners are discussed.


Events leading to the bankruptcy of Grundig
Factors that led to the bankruptcy of Grundig
Future prospects of Grundig under its new owners


  Page No.
Introduction 1
Background Note 2
The Dutch Connection 4
Financial Mess and Insolvency 6
The New Owners 8
Outlook 9
Exhibits 11


Alba Plc, Beko Electronics SA, Grundig AG, Grundig Multimedia BV, Royal Philips Electronics NV, European consumer electronics industry, Betamax, Sony Corp, Consumer Electronics, Commission of the European Communities, European Commission, Insolvency Administrator, Joint Acquisition, Bankruptcy, Home Intermedia Systems

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