Band & Olufsen: Design Driven Innovation  

with the combination of technological excellence and smart designs.  The products of the company are considered as lifestyle products and targets the middle and upper class consumers who are educated and live luxurious life

1: Competitive situation in 2006:

Bang & Olufsen is a well known company for its unique range of products. In the competitive situation of 2006, company had maintained its reputation in the world.  It had targeted more than 60 countries and sold multiple ranges of products like radios, televisions, speakers, telephones and other products. It delivered the coolest and most technological products with high-quality among industrial companies and it completed a high profit level.  To create recognizable identity, company adopted unique development process.

The company was good at different range of products like television, audio system, loudspeakers, telephones and other systems of entertainment. It was worldwide for its unique quality of design and idea based products.  It had created a very good network of its dealers and from its customers (Bang, 2005).

With the advantage, there were some drawbacks in the company. Company should be worried about the way of designing its products. The problem was that when a product was turned on, it became complicated. Company was using old and traditional way for its business. Company’s vision was that company would be growing if there would be network based interaction with other services, and there would be best software for the designs.  Company needed to change its traditional way of skills and ideas and required to bring something different from the past.

2: Design Process of Bang & Olufsen:

Design is a very important part of manufacturing process to give the shape to product. The design is basically consist of any particular figure made by the designer to produce some meaningful product in identifiable manner (Venkatraman, 2010).

Company always tries to produces eco-friendly products which consumers always find in the products. It always tests mechanically the product before releasing so that good quality can be delivered.  For every product, the company has its product managers. They have product specification, and product cannot move to next process unless it has met its specified design standard (Tannen, 2007).

Bang & Olufsen has divided its product design in two different groups which consists of group A, and group B. Group A consists of successful products and has achieved popular design award. In the design process of group ‘A’ products, designers like to work alone so they have only contact with development team and assistance. They make design process based on their personal information sources.

Figure 1: Design process-Group

(Source: Möckel & Borg, 2014)

Group B consists of those products that perform on average and play a role as strong relationship between designers and product success. In these products, designers usually take designs decisions based on their own intuitions and from nature. They always try to avoid external sources. No any designer talk to that person who is not involved with project.

                                     Figure 2: Design Process- Group B                                    

(Source: Möckel & Borg, 2014)

During design process, designers of both the groups use different networks. Designers of group B use much smaller network of sources than group A. Designers of group A use inspirational sources while designers of group B use natural sources for design process (Möckel & Borg, 2014)

3: Strength and weakness:

A firm’s strength consists of capabilities and ability of firm to earn profit in competitive market.  It is the evaluation of company’s good points. Firm’s weakness refers to those things that stop firm to perform well in the market and need to be noticed (Pahl & Richter, 2007).

Bang & Olufsen has maintained its reputation in the competitive market with its practice and experience. Company understands its customers so it makes user friendly and customer supportive products. Company also understands technology so design and quality of its products is unique. It always uses the best quality of material for its products. Customer always wants to pay for quality products, which are its strength.

Company has seen much success during its journey but there are some levels on which it is unable to reach due to challenges. The problem with the company is that the prices of its products are very high. Customers agree that Bang & Olufsen has unique product with high quality materials which gives best service to the customers but many of customers cannot afford them because of its prices. So as a option, they choose any alternative which has less prices compared to its products (Sayedi & Yaqoubi, 2014).

4: IdeaLab Approach:

The concept of Idea lab was started in year 2002. The main objective of these labs innovate the process of product development in Bang & Olufsen. The main concern was that there should be balance in renewal and continuity in the product. The employees, who are working in Idealab, are more able to add new technological features like digital and software technologies into product and it increases the profit of the company.

It can be said that the approach of Idealab is a key element of the company and it will be fruitful for the company to make effort in new innovations through technology and ideas.

5: Product range into virtual space:

Yes, B&O has managed to extend their product range in virtual space. The company always envisioned that it would extend its product range in virtual space with great designs and grate software. To fulfill this vision, company made its products with slogan like no one else. On its website, there is a wide range of products with specifications for the customers.

For example, there is a wide range of headphones with different features and prices. The headphone named Beoplay H5 is a new product which is wireless headphone and gives an outstanding sound experience (Bang & Olufsen 2016).

Figure 3: Beoplay H5

(Source: Beoplay, 2016)

Beoplay A6 is a one point music system which fills the whole room with music. It is a unique design of music system that’s no matter where it is placed in the home. It will give complete quality of sound.

Figure 4: Beoplay A6 

(Source: Beoplay, 2016)

So, it have been analyzed that Bang & Olufsen has done very well in competitive market and it has extended its product range in virtual spaces very well.

References

Bang & Olufsen (2015). Business to Business. Retrieved on 15^th August 2016 from https://www.bang-olufsen.com

Bang, J., (2005) Bang & Olufsen: From Spark to Icon, Denmark: Bang & Olufsen

Beoplay (2016). Retrieved on 15^th August 2016 from https://www.beoplay.com/products

Möckel, M., & Borg, M.S., (2014). The Impact of the External Network on New Product Development, Denmark: Copenhagen Business School

Pahl,N., & Richter, A., (2007). Swot Analysis - Idea, Methodology and a Practical Approach, Germany: GRIN Verlag

Sayedi, A.Q., & Yaqoubi, S., (2014). Bang & Olufsen Strategic Analysis since 2008 financial crisis. Denmark: Århus University

Tannen, R., (2007). Bang & Olufsen: Great Designers vs. Great Process. Retrieved on 15^th August 2016 from https://www.designingforhumans.com
Venkatraman, S., (2010). Understanding designs act, India: Universal law publishing co. pvt. Ltd.