For Students Reference only

1. B& O (Case Study)
Q1- how do you explain that B&O has remained successful in the face of tougher
competition? What is their competitive advantage?
Nice design , aesthetic, quality, Simply use , have been the competitive advantage of the
company in front of its competitors and the reason of its success even with existence of too
many competitors and even with high price of B&O products.
Actually, it is using high quality strategy and producing customized (easy to use) products with
long duration.
Q2- how would u define the market B&O are competing in and which segment are they
serving?
Typical customers of P&O are older and wealthier than the average for consumer electronics.
These customers are after the quality and durability of products not price of them. In short B&O
concentrates on the most affluent 2 per cent of consumers but they can not continue this way
and they have to expand their market and change their present marketing strategy that is
concentrated marketing.
In other word they are using focus strategy because they just focus on the niches that afford to
buy expensive high quality electronic products.
Q3- what targeting strategy B&O currently pursuing? Is this sustainable?
B&O CURRENTLY PURSUING Concentrated targeting strategy and is just serving 2 percent of the
market (focus strategy) and its strategy for attracting these niches is quality strategy.
this strategy is not sustainable because B&O for preventing the decrease in its sale and
revenue has to attract other segments specially young segments because now most part of its
customers are elder and high income consumers; so in future a percentage of them will die so
there should be substitutes for them and those substitutes are those customers that are young
now with low income but in future can get more income.
B&O for attracting this young people ,should up to date their technology more than past and
also should make some product differentiation and come out with some products with high
quality but more affordable price .

2. Finally, I think, if they want to have sustainable improvement and profit, they should choose
broad differentiation strategy; it means they should focus on innovation, quality, and affordable
price strategies simultaneously.