Market and Competitors
Market
As part of B&O´s diversifications strategy, they are seeking out to gain a part of the international markets. B&O operates in four geographical areas.
The areas with the percentage of total revenue in 2013/14 in the B2C market are represented below.
・ Europe – 66%
・ North America – 8%
・ BRIC – 15%
・ Rest of World – 11%
China
In recent years, B&O has pursued an aggressive growth strategy in the Chinese market, with more or less success. In 2012, B&O sold 8% of the company to Sparkle Rools (a Hong Kong distributor of luxury good) and A Capital (a private equity group that invests in European companies looking to expand in China). B&O chose to work with these companies because of their knowledge about the Chinese market.
“We have identified B&O as being one of these companies that are iconic but not very present in China,”
B&O is still struggling with establishing footing in the Chinese market and is time after time reporting larger than expected quarterly losses.
Competitors
Samsung Electronics manufactures and sells a broad product assortment, which include household appliances, computers, tablet computers, computer peripherals, mobile phones, as well as audiovisual products. The company´s strategy is to enlarge their market dominance and leadership in the industry. This include an intensive marketing effort towards promoting premium products and differentiate product designs within their LCD TV assortment.
Loewe’s product portfolio includes audiovisual, but is more narrow that B&O´s. Their premium brand strategy is to differentiate products in quality and design. The company also produces a cheaper product line, with the purpose to “open doors” in new markets.
Loewe has a strategic alliance with Apple and is therefore developing new products, that are compatible with Apple´s portable products.
Unlike B&O, Loewe will concentrate on further developing the SmartTV, a product which is also key for Samsung.
Apple’s product portfolio includes software, iPad, iPhone, Mac computers and Apple TV. The company differentiates the products by ease of use, design and quality. Like B&O, Apple sells their products through dedicated shops that sell exclusively Apple products.
Samsung - South Korea
Loewe - German
Apple – U.S.
