Strategic Positioning Planning for International Success

The strategic positioning planning is effective for the multinational corporate firms in order to manage the international operations and establish the company efficiently in the market. The organisation Bang & Olufsen is established at Denmark and it is efficient to produce the products such as latest high tech solutions including television, multimedia, music system and speakers. In the recent years, the company mainly focuses on high tech audio system to attract the customers across the globe. The company is known as luxurious brand in the market, where the customers expect high technology products, creative design and quality of the products. However, the company faced difficulties to generate profitability and in the year of 2007 and 2009, it lost their profitability volume by 20% due to reduction in sales volume mainly in the markets like Germany, Denmark and Great Britain. It is necessary for the brand to reshape their business and develop appropriate strategic planning to establish the firm in the global market. The company focuses on managing their brand position through developing effective strategic planning so that it is possible for the firm to attract more audiences and fulfil he corporate objective. The purpose of the company is to establish Bang & Olufsen in the international market and generate profitability in long run. The mission of the company is to be reputed as a creative electronics manufacturing brand in the market, where the company aims at grabbing the market share. In the recent years, the company mainly focuses on the strategic priorities which are gaining high market share and high competitive advantage over other competitive brands in the market.

Additionally, the priority of the company Bang & Olufsen is to strengthen their customer’s base in long run so that it would be possible for the firm to generate high profitability by enhancing their sales volume. In this regard, another strategic priority of the organisation Bang & Olufsen is to create values for the customers worldwide by delivering high quality products and services at affordable price. Hereby, as a corporate multinational firm, it is the aim of the company to maximise profitability by strengthening their customer’s base in long run. In order to fulfil the corporate strategic priorities, the organisations try to develop appropriate strategic planning in order to manage their global operations and establish the firm efficiently (Trigeorgis and Reuer, 2017). There are different strategic planning such as cost leadership strategy and product differentiation strategy which are effective for the corporate brands to establish their business in the international level. The cost leadership strategy is effective, where the organisation aims at minimising the cost structure of the organisations for producing the organisational products and services. The minimisation of the cost structure further provides a scope to the firm to generate profitability by setting effective price, where profit margin can also be maximised further in long run. The economies of scale of the organisational production can also be managed well, in which the employees can utilise the organisational resources in an efficient way and improve economies of scale by increasing the output units. Hereby, the minimisation of cost leadership style is beneficial for the organisation Bang & Olufsen to manage their operations and manufacturing units by maintaining effective economies of scale. The company Bang & Olufsen can reduce the cost structure by reallocating the organisational resources, producing a balk amount of products at a time, using quality raw materials and latest technology to increase the units of output in log run. These are the major steps through which Bang & Olufsen can manage their cost structure and improve their operations successfully (Bang & Olufsen, 2020).

Through the cost leadership strategy, it is possible for Bang & Olufsen to gain high competitive advantage in the music and entertainment industry, where the company would be able to deliver quality products including audio and video products at effective price level. In this regard, the company Bang & Olufsen also needs to review their pricing strategy for targeting the customers and retaining them for log run. Apart from the cost leadership strategy, the company should choose the premium pricing strategy in order to set lower price initially for their organisational products so that it would be possible for the company to attract different customer segment in the society across the international borders. Setting competitive price after cost leadership strategy is also effective to manage the profit margin as the company is already efficient to reduce their cost and set effective price that reflects the quality of the products, durability, high tech and design, which are effective to attract the customers in the global market and retain them for long run (Richards, 2017). Hereby, apart from the cost leadership strategy, it is mandatory for the organisation Bang & Olufsen to choose the premium pricing policy in order to generate profitability as well as fulfil their strategic priority by strengthening their customer’s base in long run.

In addition to the above strategic planning, the company also focuses on product differentiation strategy, where the organisation is able to diversify their products and services to manage the product portfolio in long run. Apart from focusing on one product, it is beneficial for the organisations in the recent era of globalisation to develop product diversification strategy for market entry and expansion, where the brands can enter into new market as well as expand their business across the globe (David, F. and David, F.R., 2016). International trade can be enhanced through product differentiation where the brand scan manage high product portfolio with different design and high tech products. Product category in this regard is playing a crucial role in doing the business efficiently across the international markets and gain high competitive advantage. The firms recently focus on managing product portfolio by introducing a huge variety of product so that it is possible to target different segment of customers according to their taste and preferences. Recently, the customer’s choice and preferences is changing over the years, and product differentiation is the strategy which provides an opportunity to the corporate firms to target different segment of customers proffer diversified products to the customers (Chalaby, 2019). The customers in the market also can make effective purchase decision or the products after reviewing the products and service category of the firm. Hereby, the product differentiation strategy is effective for the organisation Bang & Olufsen to fulfil the strategy priorities and establish the brand successfully in the market.

In this context, for gaining competitive advantage, the company needs to diversify their products and services and manufacture different products such as audio products, video products, high tech mini audio system, speakers and home theatre, DVD players and others music system, which have high demand in the market where in the recent years, the customers prefer innovative designed and high tech creative products for fulfilling their preferences. The company aim at diversify their products in order to fulfil the expectation of the customers, so that it would be possible for Bang & Olufsen to strengthen their customers base and make their customers happy by delivering high quality products at effective price. In addition to this, proper product portfolio can attract a huge numbers of customers worldwide for the quality products and services. However, apart from the cost leadership and product differentiation strategy, it is necessary for the company Bang & Olufsen to promote the organisational products as promotional activities are playing crucial role in gaining high competitive advantage. In this regard, the company needs to choose social platform such as FaceBook and YouTube to promote their products and services in the market. Through creating innovative post with attractive pictures of the products and clear content related to the product specifications and price will attract the audiences in the market (Bang & Olufsen, 2020).

Additionally, the company needs to develop appropriate mobile application, as in the recent years there is high trend of e-commerce and online shopping through the Smartphone devices. And the development of mobile application is effective for the company to attract the audiences across the international markets. In this regard, the company promote the brand through SEO content and request the customers to download the mobile application for accessing the availability of the innovative audio video products (Lasserre, 2017). The company should adopt the strategy of cost leadership and product differentiation and apart from that, it also needs to develop promotional activities to share the information about their products and services and latest innovation with the customers across international markets so that it would be possible for Bang & Olufsen to establish the brand and improve brand visibility. The company Bang & Olufsen is efficient to fulfil the strategy purpose through the above mentioned strategic planning, as it has financial stability and strong team to support the production and operations of the products and services in the market. Strong management team, efficient employees, organisational infrastructure and technological support further provide a scope to Bang & Olufsen to develop the strategic planning and fulfil the business objective by establishing the brand and gaining high competitive advantage.

Reference List

Chalaby, J.K., 2019. Outsourcing in the UK television industry: A global value chain analysis. Communication Theory, 29(2), pp.169-190.

David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach, concepts and cases. Pearson–Prentice Hall.

Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.

Richards, G., 2017. Warehouse management: a complete guide to improving efficiency and minimizing costs in the modern warehouse. Kogan Page Publishers.

Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic Management Journal, 38(1), pp.42-63.

Continue your journey with our comprehensive guide to strategic planning of Tesco and Sainsburys.