Business Case Studies, Restructuring / Turnaround Strategies Case Study, Bang & Olufsen, The Danish High-end Audio Maker's Restructuring Strategies

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Restructuring / Turnaround Strategies Case Study

Case Title:

Bang & Olufsen: The Danish High-end Audio Maker's Restructuring Strategies

Publication Year : 2005

Authors: R. Muthu Kumar, Srinath Manda

Industry: Engineering, Electrical and Electronics


Case Code: RTS0055

Teaching Note: Not Available

Structured Assignment: Not Available

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Bang & Olufsen (B&O) is a Denmark-based high-end audio-video equipment maker. From a humble beginning in 1925, B&O has grown into an international company known for its high quality and innovative products. But during the 1980s, rising competition coupled with inefficient management and economic crisis resulted in severe loss in the revenues and market share of the company. A restructuring plan implemented in the early 1990s did not achieve the desired results. In 2001, the new Chief Executive Officer, Sorensen, initiated another restructuring plan based on global expansion, focused product design and aggressive marketing strategy.

Pedagogical Objectives:

  • To highlight the rise and fall of B&O over the decades
  • To discuss the restructuring strategies of B&O and whether these strategies would ensure a successful future for B&O.

Keywords : Bang & Olufsen (B&O); High-end audio-video equipment maker; Fashion conscious consumers; Restructuring plans and strategies; Acoustic lenses; Restructuring / Turnaround Strategies Case Study; Focused product design and marketing; Overcrowded competition; Revolutionary products with simple functionality; The Archimedes Project; B1 exclusive B&O franchisees; Technology sharing partnership; Dismal financial performance; Ineffective distribution channels; National custom design program; Outreach Customers & Partners Program

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