Bang and Olufsen - Case Study Example

The main elements in this understanding were an acknowledgment that simply producing televisions, radios, and other such traditional electronic devices would not suffice in the contemporary cultural and design climate. In this new world companies would increasingly have to adhere to virtual spaces in determining both design and product innovation. Even as Bang and Olufsen has developed a reputation as a modern day innovator in terms of cutting-edge design practices, they also have a long history of production excellence.

The company began in 1925 building radios for family friends. The company resisted aiding the Nazi’s in the Second World War and experienced tremendous strife for this decision. They then became regarded as ‘The Danish Quality Brand’. With the upsurge in Asian manufacturing competition, the company recognized that securing a firm market share required significant innovation. It was during this period that they moved towards a design first strategy, bringing on first-rate architects and designers.

This business approach persisted until the 1980s when increased Asian competition demanded further innovation. During this period the company overhauled their distribution methods. . In classifying the type of innovative that Bang and Olufsen had undergone, one must consider their design process in relation to the companies overarching strategic perspective and approach. Bang and Olufsen established themselves early on as committed to quality and sound product development. This trend continued until the later part of the 20th century, as the firm progressively moved towards innovative design processes to establish market differentiation.

As noted earlier, with Apple’s innovative product development and the explosion of Internet technology, for Bang and Olufsen to retain s significant market share it was required of them to not only maintain significant design standards, but to increasingly consider the means of innovating software. One telling quote in these regards was made by the company’s CEO Torben Ballegaard who stated, “It’s like insulin in the human body; too little and you die, too much and you die” (pg. 2).

In these regards, Ballegaard was referring to the notion that in overcapitulating to the technological development trends established by Apple and to some degree Microsoft, the company could lose the foundation that brought them to market prominence to begin with; of course, the converse of this, is that in neglecting these technological currents the company could be deemed irrelevant and experience ever dwindling profits. The company’s response to these product challenges was through hybrid strategic, design and product innovation.

In many regards, the company believed that its process format was conducive to innovation and product development it was just that this process needed to be shifted to reflect the current cultural climate. In these regards, the case analysis notes, “Sorensen